What Costco and SCAN announced

On August 18, 2026, Costco Wholesale and SCAN Health Plan confirmed an expanded partnership, described as Costco's first comprehensive Medicare partnership.

To be clear, Costco isn't becoming an insurer. SCAN holds the Medicare contract and will underwrite the plans. Costco simply brings its brand and retail footprint to the table.

The rollout starts small: Medicare Advantage plans in two states, plus a Medicare Supplement (Medigap) plan in a third. Costco's senior vice president for pharmacy has called the effort a pilot program.

This didn't come out of nowhere

The August announcement made headlines, but Costco and SCAN have actually been working together since October 2025.

SCAN has been a preferred pharmacy partner for Costco for years, and the two companies held in-store education events at 50 Costco locations across five states last November.

In January 2026, SCAN members in Washington state gained the ability to spend their over-the-counter benefit dollars at Costco. The August announcement is really the next step in a relationship that was already underway.

Who is SCAN Health Plan?

If you haven't heard of SCAN, you're not alone. It's a nonprofit Medicare Advantage insurer based in Long Beach, California.

SCAN currently offers Medicare Advantage plans across six states: Arizona, California, Nevada, New Mexico, Texas, and Washington, covering more than 300,000 Medicare Advantage members.

In California, where it has the most members, SCAN ranked second out of eight plans in a recent J.D. Power member satisfaction study.

No, you won't need (or get) a Costco membership

Federal rules include an anti-bundling requirement that prevents Medicare plans from being tied to the purchase of another product or service, and a Costco membership counts.

That cuts both ways. You won't need a Costco membership to enroll in the new plan, and enrolling won't come with a free membership either.

What we still don't know

  • Which two states get the Medicare Advantage plans
  • When enrollment will actually open
  • What the plans will cost, or what they'll cover
  • Whether the plans will be approved by federal regulators at all, since approval is still pending

One update since the original announcement

A public insurance filing has since identified Washington state as the location for the co-branded Medicare Supplement plan. That filing was still listed as pending review as of early September. The two Medicare Advantage states haven't been named.

Next steps

The idea of a Costco-branded Medicare plan could be exciting to many who love the brand. But nothing has been set in stone yet.

The proposed products remain subject to regulatory review and approval.

Once official information becomes available, our licensed insurance agents can help you determine whether these proposed plans could be a fit for your specific situation.