In recent years, retail giant Costco has steadily expanded its footprint in consumer healthcare, offering everything from discounted prescription drugs and optical centers to hearing aids and direct-to-consumer telehealth services. Now, the warehouse club is stepping into the health insurance arena through a high-profile insurer partnership.

This announcement has generated significant buzz among older adults evaluating their coverage options. However, it is essential to distinguish between a headline-grabbing corporate partnership and a health plan that is actively available for purchase. Costco Medicare Advantage plans are an upcoming, localized pilot initiative—not a nationwide product currently available for immediate enrollment.

If you are a senior navigating your health coverage options, here is a detailed, objective look at what the Costco-SCAN partnership entails, how these upcoming plans differ from current market options, and what criteria you should evaluate before choosing any Medicare plan.

Costco Medicare Advantage Plans for Seniors: What to Know Before Enrollment

In recent years, retail giant Costco has steadily expanded its footprint in consumer healthcare, offering everything from discounted prescription drugs and optical centers to hearing aids and direct-to-consumer telehealth services. Now, the warehouse club is stepping into the health insurance arena through a high-profile insurer partnership.

This announcement has generated significant buzz among older adults evaluating their coverage options. However, it is essential to distinguish between a headline-grabbing corporate partnership and a health plan that is actively available for purchase. Costco Medicare Advantage plans are an upcoming, localized pilot initiative—not a nationwide product currently available for immediate enrollment.

If you are a senior navigating your health coverage options, here is a detailed, objective look at what the Costco-SCAN partnership entails, how these upcoming plans differ from current market options, and what criteria you should evaluate before choosing any Medicare plan.

Does Costco Offer Medicare Advantage Plans?

As of September 2026, Costco does not have Medicare Advantage plans actively available for nationwide enrollment.

In August 2026, Costco Wholesale Corporation announced a strategic partnership with SCAN Group (SCAN Health Plan) to co-develop senior-focused insurance products. Under this agreement, the companies intend to launch a pilot program featuring:

• Medicare Advantage Products: Planned for an initial rollout in two states.

• Medicare Supplement (Medigap) Product: Planned for one state.

Crucially, these products remain subject to strict regulatory review and approval by the Centers for Medicare & Medicaid Services (CMS) and state insurance departments. Neither Costco nor SCAN has publicly disclosed the specific launch dates or the initial states selected for the pilot, though executives noted the targeted regional markets encompass roughly 5 million total Medicare enrollees.

Seniors should be cautious of misleading advertisements suggesting that Costco-branded Medicare Advantage plans are currently open for enrollment across the country.

Who Is SCAN Health Plan?

To understand how these joint offerings will operate, it helps to know Costco’s insurance partner. SCAN Group is a California-based, mission-driven, non-profit organization. Its primary insurance arm, SCAN Health Plan, is one of the nation’s largest non-profit Medicare Advantage insurers, serving nearly 460,000 members across select counties in six states: California, Arizona, Nevada, Texas, New Mexico, and Washington.

SCAN specializes exclusively in senior healthcare and has built a reputation for high-performing Medicare Advantage plans focused on chronic disease management and independent living.

Important Note: While SCAN operates Medicare Advantage plans in several states, not every SCAN plan will become a Costco-branded plan. The jointly branded insurance products are separate pilot offerings undergoing specific regulatory clearance.

What Benefits Could Costco Medicare Plans Include?

Because plan details remain subject to CMS approval, exact co-pays, premiums, and benefit tiers have not been published. However, initial public announcements from Costco and SCAN highlight several areas where the two brands intend to integrate retail and health services:

• Integrated Pharmacy Services: Seamless utilization of Costco Pharmacies for prescription fills, drug consultations, and potential preferred-tier cost sharing.

• Over-the-Counter (OTC) Allowances: Flexible OTC allowances (such as Medflex benefits) that may allow members to purchase eligible health and wellness goods.

• Vision and Optical Benefits: Alignment with Costco’s Optical centers for exams, frames, and corrective lenses.

• Audiology and Hearing Aids: Potential coverage options or discounts tied to Costco’s Hearing Aid Centers.

These features represent planned and potential benefit concepts. Until formal plan documents (such as the Evidence of Coverage) are published following regulatory review, specific benefit details cannot be guaranteed.

Does a Costco Membership Automatically Include Medicare Advantage?

No. A Costco membership does not automatically enroll you in, nor does it guarantee eligibility for, any Medicare Advantage plan.

Health insurance products in the United States are strictly regulated under federal law. Federal guidelines prohibit Medicare Advantage organizations from bundling or conditioning health plan enrollment on paid store memberships.

Key points regarding membership and coverage include:

1. Separate Products: A Costco club membership and a SCAN-issued Medicare plan are completely distinct products.

2. Access and Sales Channels: When approved, these plans will be available through standard insurance channels, independent licensed agents, online portals, and designated information areas in select stores.

3. No Automatic Qualification: You must meet standard Medicare eligibility criteria (being enrolled in Medicare Part A and Part B and residing within the designated service area).

Costco Medicare Advantage vs. Traditional Medicare

When Costco Medicare Advantage plans launch, they will operate within the broader Medicare Part C framework. To evaluate how any Medicare Advantage plan compares to Original Medicare, consider this core structural breakdown:

While Medicare Advantage offers integrated extras and out-of-pocket protections, it typically requires members to use designated provider networks and obtain prior authorizations for certain medical services.

What Seniors Should Compare Before Choosing a Plan

A familiar retailer brand can offer peace of mind, but a recognizable company name should never replace a thorough evaluation of plan specifics. When reviewing Medicare Advantage options—whether from Costco/SCAN or any other carrier—work through this essential decision checklist:

• [ ] Monthly Premium: What is the plan’s monthly cost in addition to your standard Part B premium?

• [ ] Out-of-Pocket Maximum: What is the absolute cap on medical spending per year ($ MOOP)?

• [ ] Doctor and Hospital Networks: Are your primary care physician, preferred specialists, and local hospital systems in-network?

• [ ] Prescription Formulary: Are your specific maintenance medications listed, and on which cost tier?

• [ ] Pharmacy Network: Is your preferred local or mail-order pharmacy considered a “preferred” network location for lowest copays?

• [ ] Referral & Prior Authorization Rules: Do you need primary care referrals to see specialists, or prior approvals for diagnostic testing?

• [ ] Dental, Vision, and Hearing Benefits: What are the exact dollar caps, copays, and provider networks for routine ancillary services?

• [ ] Over-the-Counter (OTC) Rules: Where and how can you spend monthly or quarterly OTC allowances?

• [ ] Star Ratings: How does CMS rate the plan on overall quality, customer service, and care coordination?

Medicare Advantage vs. Medicare Supplement (Medigap)

It is critical to distinguish between Medicare Advantage (Part C) and Medicare Supplement (Medigap) insurance, as the Costco-SCAN partnership plans to introduce products in both categories.

• Medicare Advantage (Part C): Acts as an alternative way to receive your Medicare benefits through a private insurer. These plans replace standard Original Medicare administration, typically feature provider networks (HMO/PPO), and often bundle drug and extra benefits.

• Medicare Supplement (Medigap): Acts as an addition to Original Medicare. You keep standard Original Medicare as your primary coverage, and the Medigap policy helps pay remaining out-of-pocket costs like deductibles and 20% coinsurance. Medigap plans do not use restricted provider networks and do not include prescription coverage.

Because these two insurance models function differently, they cannot be used simultaneously.

When Could Costco Medicare Plans Become Available?

As of late 2026, no public launch date has been finalized. Availability depends entirely on regulatory approval timelines.

Project Status Overview

How Seniors Can Prepare

While waiting for official, approved plan documentation to emerge, seniors can take actionable steps to organize their coverage needs:

1. Audit Your Current Usage: Review your current Annual Notice of Change (ANOC) or plan documentation to understand your current premiums and medical expenses.

2. Compile Your Provider List: Write down the full names and facility addresses of all doctors, specialists, and physical therapy centers you visit regularly.

3. Inventory Your Medications: Document every prescription drug, exact dosage, and monthly refill frequency.

4. Identify Preferred Retailers: Note which local pharmacies or health counters you use regularly.

5. Monitor Official Releases: Look for verified plan materials issued directly by Medicare.gov or official announcements from SCAN and Costco once regulatory approvals are completed.

Never terminate or modify existing health insurance coverage based on preliminary product announcements.

Medicare Enrollment Considerations

When Costco-branded health plans become available, enrollment will strictly adhere to standard Medicare enrollment windows. No special enrollment period (SEP) is created simply because a new retailer enters the market.

Key windows include:

• Initial Enrollment Period (IEP): A 7-month window around your 65th birthday when you first become eligible for Medicare.

• Annual Enrollment Period (AEP): Occurs every year from October 15 through December 7. Beneficiaries can join, drop, or switch Medicare Advantage and Part D plans for coverage starting January 1.

• Medicare Advantage Open Enrollment Period (MA OEP): Runs from January 1 through March 31 annually, allowing individuals already enrolled in a Medicare Advantage plan to switch to another MA plan or return to Original Medicare.

Questions to Ask Before Enrolling

If a Costco Medicare plan becomes available in your county during an open enrollment period, ask these questions before signing up:

1. Is this specific plan licensed and approved in my county and state?

2. Are my current primary physicians and specialists considered in-network providers?

3. Are all my prescription medications included on the plan’s drug formulary?

4. Is my local Costco Pharmacy listed as a preferred in-network pharmacy for maximum savings?

5. What is the plan’s maximum out-of-pocket (MOOP) limit for the calendar year?

6. What specific coverage rules apply to vision, dental, and hearing care?

7. Does the plan require prior authorization or doctor referrals for specialist visits?

8. What is the plan’s official CMS Star Rating?

9. How are emergency and urgent care services covered if I travel outside the local service area?

10. What are the total combined costs (premiums, deductibles, copays) based on my typical yearly care usage?

Frequently Asked Questions

Is Costco offering Medicare Advantage plans?

Costco has announced a partnership with SCAN Group to co-develop Medicare Advantage plans. However, these plans are part of a pilot initiative that is currently pending regulatory approval and is not yet available for enrollment.

When will Costco Medicare Advantage plans be available?

An official release date has not been published. Availability will depend on regulatory approval timelines.

Which states will Costco Medicare plans be available in?

The initial rollout calls for Medicare Advantage products in two states and a Medicare Supplement plan in a third state. Costco and SCAN have not publicly disclosed which specific states were selected.

Does Costco membership include Medicare Advantage?

No. Medicare Advantage plans are regulated insurance products offered separately from retail store memberships. A Costco membership does not automatically enroll or qualify you for insurance.

Will Costco Medicare Advantage plans be cheaper?

Pricing, copays, and premium structures have not been finalized or released to the public. All costs will depend on approved plan designs once CMS review is complete.

What company is partnering with Costco?

Costco is partnering with SCAN Group (SCAN Health Plan), a long-standing non-profit Medicare Advantage insurer.

Will Costco Medicare plans include dental and vision benefits?

Initial announcements indicate plans may incorporate vision, audiology, pharmacy, and over-the-counter benefits, but specific inclusions remain subject to final regulatory approval.

Can existing Medicare beneficiaries enroll?

Once available in a beneficiary’s county, eligible seniors will be able to enroll during standard Medicare enrollment windows (such as the Annual Enrollment Period).

How will Costco plans compare with other Medicare Advantage plans?

Like all Part C plans, they will offer standard Part A and B benefits combined with potential integrated extras. Seniors must compare provider networks, formularies, and total out-of-pocket costs against existing regional plans to determine the best fit.