Updated August 18, 2026: Costco and SCAN have announced a new Medicare partnership, but plan locations, pricing and enrollment dates have not yet been fully disclosed.
Costco Medicare plans are officially in development through a new partnership between Costco Wholesale and SCAN Health Plan, marking Costco’s first comprehensive partnership with a Medicare plan.
The companies announced the expanded partnership on August 18, 2026. They plan to develop senior-focused insurance products that may connect Medicare coverage with services consumers already associate with Costco, including pharmacy, vision, hearing, and over-the-counter health products.
However, shoppers cannot enroll in a new Costco Medicare plan yet. Important information—including exact availability, premiums, provider networks, drug coverage, and launch dates—has not been fully announced and remains subject to regulatory review and approval.
The initial rollout is expected to be limited rather than nationwide. Reports indicate that Costco and SCAN intend to offer jointly branded Medicare Advantage plans in two states and a Medicare Supplement plan in a third state. The companies have not publicly identified those states or provided an exact enrollment schedule.
Here is what Costco members and Medicare beneficiaries should know before making any coverage decisions.
Costco Medicare Plans 2026: Quick Facts
The following information has been announced or reported as of August 18, 2026:
- Costco is partnering with nonprofit insurer SCAN Group.
- This is Costco’s first comprehensive partnership with a Medicare plan.
- The companies are developing senior-focused insurance products.
- Medicare Advantage plans are expected to receive an initial limited rollout.
- A Medicare Supplement, or Medigap, product is also reportedly planned.
- Exact states and launch dates have not been announced.
- Products and benefits remain subject to regulatory approval.
- Potential features may involve pharmacy, over-the-counter benefits, vision and hearing services.
- A Costco membership will not automatically provide Medicare coverage.
- Consumers cannot enroll based solely on the initial announcement.
- Premiums, deductibles, copayments, and provider networks have not been disclosed.
- Medicare beneficiaries should not cancel or change existing coverage because of this announcement.
The official SCAN and Costco partnership announcement states that the companies expect to introduce a range of senior-focused insurance products over the coming years.
What Did Costco and SCAN Announce?
Costco and SCAN described the agreement as an expanded strategic partnership intended to bring greater value and a more connected healthcare experience to older adults.
The announcement says possible offerings could include:
- A redesigned pharmacy experience
- Over-the-counter health benefits
- Vision-related products and services
- Audiology and hearing services
- Other senior-focused health benefits
These are possible components rather than guaranteed benefits for every future plan. The announcement specifically notes that offerings are subject to regulatory review and approval.
Costco CEO Ron Vachris said the partnership extends the company’s efforts to deliver value through its expanding health services. SCAN President and CEO Dr. Sachin Jain said the organizations want to explore ways to make healthcare easier for older adults to navigate.
The announcement begins a development and approval process. It does not mean a finished plan is currently available in every Costco warehouse.
When Will Costco Medicare Plans Become Available?
An exact launch date has not been publicly provided.
Costco and SCAN said additional insurance products are expected “over the coming years,” suggesting that the partnership may develop in stages rather than through one nationwide launch.
News reports indicate that the first phase is expected to include:
- Costco and SCAN Medicare Advantage plans in two states
- A Medicare Supplement plan in a third state
- A combined potential market of approximately five million Medicare beneficiaries
The companies have not yet identified the three states. They cited regulatory restrictions while the plans await review and approval.
Consumers should wait for plan documents published by Costco, SCAN, or Medicare before assuming coverage will be offered in their county.
Medicare Advantage availability is determined by service area. Even if a plan launches in your state, it may not be sold in every county.
Will Costco Medicare Plans Be Available Nationwide?
No nationwide launch has been announced.
The initial rollout is expected to be limited to selected markets. Costco and SCAN may expand into additional areas later, but that will likely depend on regulatory approval, provider networks, and results from the initial launch.
SCAN currently operates Medicare Advantage plans in parts of:
- California
- Arizona
- Nevada
- New Mexico
- Texas
- Washington
SCAN’s current service areas do not confirm where the Costco-branded plans will launch. Consumers should not assume that every state listed above will receive a Costco plan.
The official plan finder at Medicare.gov will be one of the most reliable places to confirm availability after any plan receives approval.
Do You Need a Costco Membership to Enroll?
Costco has not announced that consumers must purchase a warehouse membership to qualify for Medicare coverage.
Reports about the partnership indicate that a Costco membership will not be bundled with the insurance product. Medicare regulations also limit how health plans may use non-health benefits and inducements when marketing to beneficiaries.
This means enrollment in a future Costco-branded plan should not be confused with buying or renewing a Costco Gold Star or Executive membership.
The plan might be marketed to Costco shoppers or connect with Costco health services, but the final eligibility and enrollment requirements will appear in the approved plan documents.
Do not purchase a Costco membership solely because someone claims it guarantees access to a future Medicare plan.
Who Is SCAN Health Plan?
SCAN Health Plan is a nonprofit Medicare Advantage insurer that specializes in healthcare for older adults.
According to its announcement, SCAN serves nearly 460,000 members in 33 counties across California, Arizona, Nevada, Texas, New Mexico, and Washington. SCAN Group also operates healthcare and community-service organizations focused on chronic illness, home-based care, homelessness, access to care, and social isolation among older adults.
SCAN is the insurance organization involved in the partnership. Costco is not becoming a government Medicare agency.
Future co-branded plans would still need to comply with federal Medicare rules and receive the necessary approvals.
Consumers should review the insurer’s complete plan documents and not rely exclusively on Costco’s retail reputation when evaluating coverage.
What Is a Medicare Advantage Plan?
Medicare Advantage, also called Medicare Part C, is an alternative way to receive Medicare benefits through a private insurance company approved by Medicare.
A Medicare Advantage plan generally provides Medicare Part A and Part B coverage. Many plans also include Part D prescription-drug coverage and additional benefits that Original Medicare does not routinely cover.
Depending on the plan, additional benefits may include:
- Routine dental services
- Vision benefits
- Hearing services
- Fitness programs
- Transportation
- Over-the-counter allowances
- Meal benefits in qualifying circumstances
- Care-management services
Benefits differ significantly between plans and locations. A service offered by one plan may be excluded or more limited under another.
Medicare Advantage plans also commonly use provider networks. Members may need to receive care from participating doctors, hospitals, pharmacies, or other providers to pay the lowest cost.
The official 2026 Medicare & You handbook provides current information about Original Medicare, Medicare Advantage, prescription-drug plans, and enrollment rights.
What Is a Costco Medicare Supplement Plan?
A Medicare Supplement Insurance policy, commonly called Medigap, is different from Medicare Advantage.
Medigap works with Original Medicare and helps pay certain out-of-pocket costs, such as deductibles, copayments, and coinsurance. Private insurance companies sell standardized Medigap policies.
A Medigap policy does not replace Original Medicare. You generally remain enrolled in Medicare Part A and Part B and use the supplement to help cover eligible costs.
Important points include:
- Medigap and Medicare Advantage are not the same.
- Medigap policies generally do not include prescription-drug coverage.
- Consumers may need a separate Medicare Part D plan.
- Medigap premiums are paid in addition to the Part B premium.
- Medigap availability and pricing can vary by state and insurer.
- A person generally cannot use Medigap to pay Medicare Advantage costs.
- Medicare Advantage members cannot simultaneously use a Medigap policy.
Medicare explains the distinction on its official How Medigap Works page.
Costco and SCAN have not announced the name, premium, or standardized plan type of their anticipated Medicare Supplement product.
Medicare Advantage vs. Medicare Supplement
Consumers should understand the basic difference before evaluating any future Costco Medicare plan.
Medicare Advantage
Medicare Advantage generally:
- Replaces Original Medicare as the primary method of receiving covered services
- Is administered by a private Medicare-approved insurer
- May include prescription-drug coverage
- May offer additional dental, vision, or hearing benefits
- Often uses a provider network
- May require referrals or prior authorization
- Has plan-specific copayments and coverage rules
- Includes an annual limit on covered Part A and Part B out-of-pocket costs
Medicare Supplement
Medicare Supplement generally:
- Works alongside Original Medicare
- Helps pay certain Original Medicare cost-sharing expenses
- Does not normally include prescription-drug coverage
- May allow broader access to providers that accept Medicare
- Charges a separate monthly premium
- Does not include the same additional benefits commonly advertised by Medicare Advantage plans
- Is subject to enrollment and medical-underwriting rules outside certain protected periods
Neither option is automatically better for everyone. The right choice depends on healthcare needs, budget, prescriptions, doctors, travel habits, and eligibility.
What Benefits Could Costco Medicare Plans Include?
Costco and SCAN have mentioned several areas they may explore.
Costco Pharmacy Services
Costco operates pharmacies in many warehouse locations. A future plan could potentially coordinate prescription benefits with Costco Pharmacy services.
However, the companies have not announced:
- A prescription-drug formulary
- Preferred pharmacy pricing
- Copayment amounts
- Mail-order requirements
- Specialty-drug coverage
- Whether Costco would be the required or preferred pharmacy
Consumers should not assume every prescription will become cheaper at Costco. Drug costs depend on the plan’s formulary, pharmacy network, coverage stage, and negotiated price.
Over-the-Counter Benefits
The partnership announcement mentions possible MedFlex or over-the-counter benefits.
A future plan could potentially provide an allowance for approved health products. Similar benefits from other Medicare Advantage plans may cover items such as first-aid supplies, pain relievers, or certain personal-care products.
The amount, eligible products, participating stores, and unused-balance rules have not been announced.
Vision Benefits
Costco operates Optical departments at many warehouses. Future coverage could potentially connect members with exams, eyewear, or other vision services.
No specific copayments, allowances, or provider-network arrangements have been released.
Hearing and Audiology Services
Costco also operates Hearing Aid Centers. The partnership may explore audiology and hearing-related benefits.
Consumers should wait for the Evidence of Coverage to learn which exams, devices, providers, and follow-up services would be covered.
Will Costco Membership Include Free Medicare Benefits?
No free insurance or automatic Medicare benefit has been announced.
A Costco membership is a retail membership. Medicare Advantage and Medigap are regulated insurance products with separate eligibility, enrollment, and coverage terms.
Future plans may include attractive benefits, but consumers should expect to compare:
- Monthly premiums
- Deductibles
- Copayments
- Coinsurance
- Maximum out-of-pocket limits
- Provider networks
- Prescription coverage
- Prior-authorization requirements
- Service-area restrictions
The Costco name alone does not guarantee that a plan will cost less or provide better coverage for every beneficiary.
What Costco Medicare Plan Details Are Still Unknown?
The announcement generated considerable attention, but many of the details needed to evaluate Costco Medicare plans are not yet available.
Costco and SCAN have not publicly confirmed:
- The states or counties included in the initial rollout
- The official plan names
- Monthly premiums
- Medical deductibles
- Copayments and coinsurance
- Annual out-of-pocket maximums
- Provider and hospital networks
- Prescription-drug formularies
- Pharmacy networks
- Prior-authorization requirements
- Dental coverage
- Vision allowances
- Hearing-aid allowances
- Over-the-counter benefit amounts
- Enrollment dates
- Effective coverage dates
- Whether benefits will differ for Costco members and nonmembers
Until these details are released, consumers cannot determine whether a Costco-branded plan will be less expensive or more suitable than existing options.
What to Compare Before Choosing a Costco Medicare Plan
When plan information becomes available, do not compare premiums alone. A plan with a $0 monthly premium can still have deductibles, copayments, and other out-of-pocket costs.
Review the following areas carefully.
Monthly Premium
Some Medicare Advantage plans advertise a $0 additional premium, but beneficiaries must generally continue paying their Medicare Part B premium.
A future Costco plan may or may not charge an additional monthly premium. No pricing has been announced.
For Medigap coverage, expect a separate monthly premium in addition to the Part B premium and any Part D prescription-plan premium.
Provider Network
Check whether your doctors, specialists, and preferred hospitals participate in the plan’s network.
Do not rely exclusively on a provider-directory search. Contact the doctor’s office and the plan directly because network information can change.
Ask:
- Is my primary-care doctor in the network?
- Are my specialists participating?
- Is my preferred hospital included?
- Do I need referrals for specialist visits?
- Can I receive nonemergency care outside the service area?
- What happens if a provider leaves during the year?
- Are Costco health centers the only preferred options?
Medicare provides an official guide to understanding Medicare Advantage provider networks.
Prescription-Drug Coverage
If the plan includes Part D coverage, review every medication you take.
Check:
- Whether each prescription appears on the formulary
- The medication’s coverage tier
- Copayments or coinsurance
- Quantity limits
- Prior-authorization requirements
- Step-therapy requirements
- Preferred pharmacies
- Mail-order options
- Specialty-drug rules
Do not assume Costco Pharmacy will always provide the lowest out-of-pocket price under a future plan. Compare the plan’s negotiated prices and pharmacy network.
Annual Out-of-Pocket Maximum
Medicare Advantage plans set an annual maximum for covered Part A and Part B out-of-pocket costs. The limit does not necessarily include monthly premiums, prescription-drug expenses, or noncovered services.
A lower out-of-pocket maximum may provide greater protection if you need significant medical care.
Compare the maximum along with deductibles, copayments and coinsurance. A low premium does not always mean low total yearly costs.
Prior Authorization
Prior authorization means the plan may require approval before it covers certain services, procedures, tests, or medications.
Check which services need approval and what happens if authorization is denied. People receiving ongoing treatment should determine whether current care will require new approval after switching plans.
Dental, Vision and Hearing Benefits
Additional benefits often attract attention, but coverage limits matter.
Ask:
- Which services are covered?
- Is there an annual allowance?
- Are there participating-provider restrictions?
- How frequently can the benefit be used?
- Does the plan cover only routine services?
- What percentage does the member pay?
- Does unused allowance carry over?
- Are hearing aids limited to selected brands?
A benefit advertised as “included” may still have copayments, dollar limits, or network requirements.
Could Costco Medicare Plans Save You Money?
Possibly, but no savings can be calculated until premiums and benefits are released.
A plan may save money if it:
- Includes your doctors and hospitals
- Covers your prescriptions at lower costs
- Charges affordable copayments
- Offers a reasonable out-of-pocket maximum
- Provides benefits you regularly use
- Reduces pharmacy, vision, or hearing expenses
- Offers convenient access to covered services
A plan may cost more if it:
- Excludes an important provider
- Places medications on expensive tiers
- Requires frequent specialist copayments
- Has a high out-of-pocket maximum
- Offers benefits you do not use
- Requires travel to participating locations
- Denies or delays necessary services
- Provides a low premium but higher cost-sharing
Estimate the expected total yearly cost rather than looking only at the monthly premium.
Does the Costco Name Mean the Plan Is Automatically a Good Deal?
No. Costco has a strong reputation for consumer value, but health insurance must be evaluated differently from a product sold in a warehouse.
A Medicare plan’s quality depends on factors such as:
- Provider access
- Prescription coverage
- Member service
- Claim handling
- Prior-authorization procedures
- Total out-of-pocket costs
- Coverage while traveling
- Plan stability
- Medicare quality ratings
Costco’s involvement may make consumers more interested in the plan, but every beneficiary has different health needs.
Review approved coverage documents and compare the plan with all alternatives available in your ZIP code.
When Can You Change Medicare Coverage?
Most Medicare beneficiaries can make plan changes during specific enrollment periods.
Medicare Open Enrollment
Medicare Open Enrollment generally runs from October 15 through December 7 each year.
During this period, eligible beneficiaries can usually:
- Switch from Original Medicare to Medicare Advantage
- Switch from Medicare Advantage to Original Medicare
- Change from one Medicare Advantage plan to another
- Join, change, or drop a Medicare prescription-drug plan
Changes generally take effect on January 1 of the following year.
Medicare Advantage Open Enrollment
Medicare Advantage Open Enrollment generally runs from January 1 through March 31.
People already enrolled in Medicare Advantage may generally:
- Switch to another Medicare Advantage plan
- Leave Medicare Advantage and return to Original Medicare
- Join a separate Part D plan when returning to Original Medicare
This period cannot generally be used by someone with Original Medicare to join Medicare Advantage for the first time.
Special Enrollment Periods
Certain events may create a Special Enrollment Period. Examples can include moving out of a plan’s service area, losing qualifying coverage, or experiencing another eligible life event.
Do not assume the announcement of a new Costco plan gives you an immediate right to change coverage. Enrollment will depend on the plan’s approval, effective date, and Medicare rules.
Be Careful Before Leaving Medigap
Switching from Original Medicare and Medigap to Medicare Advantage can have long-term consequences.
In many states, consumers who later want to return to Medigap may face medical underwriting outside a protected enrollment period. An insurer may charge more, impose limitations where permitted, or deny an application based on applicable rules.
Medigap protections vary by state and personal circumstances.
Before dropping an existing Medigap policy:
- Confirm your rights to purchase another policy later.
- Contact your State Health Insurance Assistance Program.
- Compare long-term costs.
- Consider ongoing medical conditions.
- Understand the new provider network.
- Review prescription coverage.
- Get important information in writing.
Do not cancel existing coverage until the new coverage is approved and you know its effective date.
How to Compare Costco Medicare Plans When Released
Follow this process once official plan information becomes available.
Step 1: Make a List of Your Healthcare Needs
Write down:
- Doctors and specialists
- Preferred hospitals
- Prescription medications
- Regular treatments
- Medical equipment
- Pharmacies
- Dental needs
- Vision needs
- Hearing needs
- Expected travel
This list will help you compare the features that matter most.
Step 2: Use Medicare Plan Compare
Enter your ZIP code and medication information in the official Medicare Plan Compare tool.
The tool can help estimate:
- Monthly premiums
- Drug costs
- Deductibles
- Pharmacy options
- Overall estimated expenses
- Medicare star ratings
Use the official Medicare website rather than relying only on an advertisement or sales presentation.
Step 3: Review the Evidence of Coverage
The Evidence of Coverage explains what the plan covers and what members must pay.
Read sections involving:
- In-network and out-of-network care
- Emergency and urgent care
- Specialist visits
- Hospital stays
- Prescription drugs
- Prior authorization
- Appeals
- Additional benefits
- Service-area rules
Step 4: Confirm Your Providers
Check the directory and contact each important provider. Ask whether the office expects to participate during the upcoming plan year.
Step 5: Check Every Prescription
Drug formularies and pharmacy networks can differ even between plans offered by the same insurer.
Step 6: Calculate Total Estimated Costs
Add:
- Monthly premiums
- Deductibles
- Regular copayments
- Medication expenses
- Expected dental, vision, and hearing costs
- Potential out-of-network expenses
Step 7: Get Free, Unbiased Assistance
Contact your local State Health Insurance Assistance Program for free Medicare counseling.
SHIP counselors are not insurance agents and do not sell plans. They can help beneficiaries understand options and enrollment rights.
Watch Out for Costco Medicare Scams
A highly publicized announcement may allow scammers to contact older adults before legitimate enrollment begins.
Be suspicious of anyone who:
- Claims enrollment must happen immediately
- Requests your Medicare number unexpectedly
- Asks for your Social Security number by phone
- Demands payment through gift cards or cryptocurrency
- Guarantees free healthcare
- Claims every Costco member is automatically eligible
- Says the plan is already available nationwide
- Threatens to cancel your current Medicare benefits
- Pressures you to make a decision during one phone call
- Refuses to provide official plan documents
Costco, SCAN, and Medicare have not announced a nationwide immediate enrollment program.
Never provide personal information through an unsolicited call, email, text, or social media message.
Visit official websites by typing the address into your browser rather than clicking an unfamiliar advertisement.
What Costco Members Should Do Now
No immediate insurance change is required.
Costco members and Medicare beneficiaries can take these practical steps:
- Keep existing Medicare coverage active.
- Do not cancel a Medicare Advantage, Medigap, or Part D plan.
- Make a list of current providers and medications.
- Review healthcare expenses from the previous year.
- Watch for official announcements from Costco, SCAN, and Medicare.
- Ignore sales messages that cannot provide approved plan documents.
- Compare every available plan when enrollment information is released.
- Ask a SHIP counselor for unbiased help if needed.
The announcement is important, but it is too early to decide whether the future plans will be a good fit.
Costco Medicare Plans Frequently Asked Questions
Are Costco Medicare plans available now?
The companies announced a partnership and future insurance offerings, but exact enrollment dates and approved service areas have not been fully disclosed. Consumers should check Medicare.gov and official company announcements before attempting to enroll.
Which states will receive Costco Medicare plans?
The exact states have not been announced. Reports indicate Medicare Advantage products are planned in two states and a Medicare Supplement product in a third.
Will every Costco warehouse sell Medicare plans?
No such nationwide availability has been announced. The initial rollout is expected to be limited.
Will I need a Costco membership?
The insurance is not expected to come automatically with Costco membership. Final eligibility requirements will appear in the approved plan documents.
Will Costco Medicare include prescription coverage?
Potential pharmacy integration has been discussed, but the formulary, pharmacy network, and cost-sharing details have not been released.
Will Costco Medicare cover hearing aids and glasses?
Vision and audiology are among the areas the partnership may explore. Specific allowances, providers, and member costs have not been announced.
Is Costco becoming an insurance company?
Costco is partnering with SCAN Health Plan, an existing nonprofit Medicare insurer. The future products are expected to be jointly branded.
Is Medicare Advantage the same as Medigap?
No. Medicare Advantage is an alternative way to receive Medicare benefits through a private plan. Medigap works with Original Medicare to help cover certain out-of-pocket costs.
Should I cancel my current Medicare plan?
No. Do not cancel existing coverage based only on this announcement. Wait until official plans are approved and compare all costs, benefits, providers and medications.
Where can I get unbiased Medicare assistance?
Contact Medicare at 1-800-MEDICARE or use the official Medicare website. Free local counseling is also available through the State Health Insurance Assistance Program.
Final Thoughts on Costco Medicare Plans
The announcement of Costco Medicare plans is significant because it brings together a major warehouse retailer and an established nonprofit Medicare insurer.
The partnership may eventually connect insurance coverage with Costco Pharmacy, Optical, Hearing Aid Centers and over-the-counter products. However, possible benefits should not be confused with confirmed coverage.
Exact states, launch dates, premiums, provider networks, prescriptions and cost-sharing details remain unknown.
When the plans are released, compare them in the same way you would compare any Medicare product. Check your doctors, hospitals, prescriptions, annual costs, and enrollment protections.
Costco’s reputation may attract attention, but the best Medicare coverage is the plan that meets your individual healthcare needs—not simply the plan with the most familiar name.
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Disclaimer: This article is for general informational purposes only and does not provide medical, legal, or insurance advice. Medicare plan availability, benefits, costs, and provider networks can change. Verify all information through Medicare.gov, the insurer, and a licensed professional before enrolling or changing coverage.
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