Costco Wholesale Corp. is preparing to enter the healthcare market by launching its own store-branded Medicare plans in a first-of-its-kind venture according to Fox Business. The warehouse giant has teamed up with SCAN Group and SCAN Health Plan, which is one of the nation’s largest nonprofit Medicare Advantage plans focused on senior healthcare. The initiative marks the first time Costco has put its name on a Medicare plan.
Costco to Launch Branded Medicare Plans With SCAN Health Plan
The upcoming rollout will begin with a pilot program featuring Medicare Advantage plans in two states and a Medicare supplement plan in a third state, as reported by AOL. The targeted markets will initially cover roughly 5 million Medicare enrollees, though specific launch dates, states, and financial terms remain undisclosed while the program awaits federal regulatory review and approval.
What Enrollees Can Expect From the Partnership
The companies plan to roll out a suite of senior-focused insurance products over the coming years. Depending on final approvals, the offerings are designed to connect Medicare benefits directly with services that Costco already provides. Potential benefits include a revamped pharmacy experience, Medflex over-the-counter pharmacy benefits, food coverage, vision care, and audiology or hearing benefits.
While the plans will be sold at Costco warehouse locations, enrollees will not be required to hold a paid Costco membership to purchase them. The insurance products will also be made available through traditional insurance agents and websites. SCAN currently serves roughly 460,000 members across Arizona, California, Nevada, New Mexico, Texas, and Washington.
Executives from both organizations emphasize that the collaboration builds upon an existing relationship. Costco has served as a preferred pharmacy for SCAN since late 2025, allowing SCAN members to spend certain plan benefits at warehouse locations. Dr. Sachin H. Jain, CEO of SCAN Group and SCAN Health Plan, stated that the initiative aims to address the disjointed experiences seniors frequently face when trying to access care.
"For the millions of older adults who rely on Medicare Advantage, the future of the program depends on strong partnerships that make healthcare more accessible, more connected and more seamlessly integrated into everyday life," Jain said in a statement.
Costco CEO Ron Vachris noted that selecting SCAN as an insurance partner serves as an extension of the company’s 40-year history of listening to members and delivering consistent value on essential goods and expanded health services.
Navigating the Medicare Advantage Landscape
The announcement arrives during a turbulent period for the broader Medicare Advantage market. Major insurers have recently been trimming perks, raising out-of-pocket limits, and exiting plans deemed insufficiently profitable. Industry data indicates that roughly 2.9 million people were forced out of their Advantage plans heading into 2026, and insurers like Humana have moved to scale back coverage footprints.
Experts point out that while warehouse clubs command high consumer trust, enrollees should still carefully evaluate whether a branded plan matches their specific doctors, prescription drugs, and budgetary needs. Carrie Graham, Director of the Medicare Policy Initiative at Georgetown University’s Center on Health Insurance Reform, observed that leveraging a trusted brand like Costco serves as an effective operational strategy for member recruitment, helping insurers bypass a heavy reliance on independent brokers.
As federal regulators review the proposal, shoppers and seniors await further details regarding the exact rollout schedule and geographic availability for the upcoming insurance products.
