Costco launching Medicare Advantage plans with SCAN Group

Costco launching Medicare Advantage plans with SCAN Group

Tue, August 18, 2026 at 8:10 PM GMT+3 2 min read

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Costco Wholesale Corporation and nonprofit insurer SCAN Group announced a partnership on Tuesday to sell Costco-branded Medicare plans, marking the retailer's first entry into the Medicare market. The two companies plan to begin with Medicare Advantage products in two states and a Medicare supplement plan in a third, pending regulatory approval from the Medicare agency, according to the Wall Street Journal.

The companies declined to name the target states or disclose timing, citing restrictions on disclosure while the plans await agency approval. The three markets together include around five million Medicare enrollees, according to the Wall Street Journal.

Under the arrangement, Costco would market branded health insurance products for older adults; the companies said covered services could encompass prescription drug access, Medflex over-the-counter benefits, vision care, and audiology, among other offerings. The plans will be sold in Costco stores as well as through insurance agents and other standard channels. Federal rules prohibit bundling a Costco membership with the health plans.

SCAN Group CEO Dr. Sachin H. Jain said the new Medicare Advantage plans would integrate closely with Costco's existing offerings across prescription drugs, vision, over-the-counter medications, food, and hearing products. "We are trying to create something that's incredibly simple for people to use that will enable them to seamlessly access their benefits," Dr. Jain said.

Costco CEO Ron Vachris said in a statement that the partnership extends the retailer's longstanding commitment to delivering value to its members. "We have developed a shared understanding of what matters most to the seniors we serve," Vachris said in the statement. "Deepening our partnership allows us to build on that foundation and create value for our members."

Richard Stephens, senior vice president for pharmacy at Costco, described the Medicare effort as a pilot. "We plan to learn a lot from it, and we plan to make sure that we have the right product for our members," Stephens told the Wall Street Journal. He added that Costco members trust that the retailer has vetted what it sells, and that the company aims to apply that same standard to the new insurance product.

SCAN Health Plan's coverage footprint spans 33 counties across six states — California, Arizona, Nevada, Texas, New Mexico, and Washington — reaching close to 460,000 members. When affiliated programs and entities are included, the broader SCAN Group network reaches roughly 500,000 members and patients, the company said. The two companies declined to disclose the financial terms of the partnership.