Costco is getting into the Medicare market.
On August 18, 2026, Costco Wholesale and SCAN Health Plan announced an expanded partnership that is expected to include jointly branded Medicare insurance products.
The companies plan to begin with Medicare Advantage plans in two states and a Medicare Supplement plan in a third, pending regulatory approval. (WSJ)
Several important details are still unknown. Costco and SCAN have not publicly announced which states will get the plans, when they will become available, what they will cost, or their final plan-specific benefits and coverage details.
For now, people with Medicare do not need to make any decisions based on the announcement.
What Did Costco and SCAN Announce?
Costco is partnering with SCAN Health Plan to offer jointly branded Costco and SCAN Medicare products.
SCAN Health Plan is a nonprofit Medicare Advantage health plan. For clarity, Costco isn’t becoming the insurer. SCAN will provide the Medicare insurance products, while the partnership brings in Costco’s brand and retail presence.
The initial rollout is expected to include Medicare Advantage plans in two states and a Medicare Supplement, also known as Medigap, plan in a third state. (WSJ)
The three target markets together include around 5 million Medicare enrollees, according to reporting on the announcement. (WSJ)
SCAN has also said future offerings may involve pharmacy, over-the-counter, vision and audiology services, subject to regulatory review and approval. Final plan-specific benefits, premiums and cost-sharing details have not been released.
Will the New Medicare Plans Include a Free Costco Membership?
Based on what’s been announced, no.
The Wall Street Journal reports that the planned Medicare products will not include a Costco membership because federal rules do not allow the companies to bundle one with the health plans. (WSJ)
The plans also are not expected to require an existing Costco membership. They are expected to be sold at Costco locations as well as through traditional insurance channels, including licensed insurance agents and online. (WSJ)
What Is Medicare Advantage?
Medicare Advantage, also called Medicare Part C, is a way to receive your Medicare benefits through a Medicare-approved private insurance company rather than through Original Medicare.
Medicare Advantage plans provide your Medicare Part A and Part B benefits, and most also include Part D prescription drug coverage. Plans may also offer additional benefits that Original Medicare does not cover. (Medicare.gov)
Plans can differ significantly in their costs, provider networks, prescription coverage and rules. For example, some may require members to use doctors and hospitals within the plan’s network for non-emergency care. Premiums and out-of-pocket costs can also vary by plan. (Medicare.gov)
There is not enough information yet to compare the proposed Costco and SCAN plans with other Medicare Advantage options.
Costco and SCAN Are Also Planning a Medicare Supplement Plan
Costco and SCAN also plan to offer a jointly branded Medicare Supplement plan in a third state. (WSJ)
Medicare Supplement Insurance, commonly called Medigap, works differently from Medicare Advantage.
According to Medicare.gov, Medigap is private insurance that helps pay some of the out-of-pocket costs left by Original Medicare, such as certain copayments, coinsurance and deductibles. Generally, you must have both Medicare Part A and Part B to purchase a Medigap policy. (Medicare.gov)
A Medigap policy supplements Original Medicare, while Medicare Advantage is an alternative way of receiving your Medicare benefits. You can’t use Medigap to pay Medicare Advantage copayments, deductibles or premiums, and generally you can’t buy a Medigap policy while you’re enrolled in Medicare Advantage. (Medicare.gov)
Where Will the Costco Medicare Plans Be Available?
Costco and SCAN have said that the initial Medicare Advantage products will be offered in two states, with a Medicare Supplement product in a third state. They have not publicly named those states. (WSJ)
SCAN currently operates Medicare Advantage plans across parts of California, Arizona, Nevada, Texas, New Mexico and Washington, but that does not mean the new jointly branded Costco and SCAN plans will necessarily be offered in all, or any particular combination, of those states.
The specific service areas will become clearer if and when the proposed plans receive the necessary regulatory approvals and official plan information is released.
What Should Medicare Shoppers Know?
When the plans become available, people with Medicare should look at the same factors they would consider with any other Medicare plan.
For a Medicare Advantage plan, that could include whether your doctors and hospitals are in the network, whether your prescriptions are covered, your premium, deductibles and copays, and the plan’s annual out-of-pocket limit.
Medicare.gov recommends considering doctor and hospital choice, costs and coverage when comparing Original Medicare with Medicare Advantage. (Medicare.gov)
Costco’s name may make these plans more familiar to some shoppers, but the important question will be how the actual coverage compares with the other Medicare options available where they live.
What Happens Next?
This is an announcement about plans that Costco and SCAN intend to offer, not an announcement that a new Costco Medicare plan is currently available for enrollment.
The proposed products remain subject to regulatory review and approval. Once official information becomes available, Medicare shoppers will be able to compare the new options with other plans offered in their area.
Until then, be cautious about claims suggesting that you can already sign up for a Costco Medicare plan or receive a free Costco membership through Medicare.
And when more details about the Costco and SCAN plans become available, feel free to reach out to our team of professional licensed insurance agents by calling or texting +1 877-360-6565 (TTY: 711). We’ll help you see whether one is available in your area and whether it’s a good fit for your needs!
Calvin Bagley is the founder of PlanFit, The Medicare Store, and Nuvo Health. He and his team have helped over 60,000 people navigate Medicare options, and he’s a nationally recognized speaker in the Medicare industry. Most importantly, he’s someone who believes every American deserves clear, honest information without pressure.