# SCAN + Costco: A New Medicare Partnership for 2027

By Scott Hauser (@scotthauser) · Published 2026-09-04

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Costco is moving into the Medicare market for the first time, and it's doing it through an expanded partnership with **SCAN Health Plan**, the Long Beach-based nonprofit insurer announced on August 18, 2026. The two companies plan to launch Costco-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third, with co-branded products expected to reach seniors ahead of the 2027 enrollment season ([Healthcare Finance News](https://www.healthcarefinancenews.com/news/costco-enters-medicare-advantage-market-through-scan-partnership)).

This matters because it pairs the insights of one of Medicare's top-rated regional plans with the trust — and the store aisles — of a retail brand 75% of SCAN's members already shop at. The announced roadmap points toward a pharmacy experience, vision, over-the-counter spending, and audiology benefits that seniors could use directly where they already buy groceries. If it clears federal review, it would give roughly 5 million Medicare-eligible people across three states a distinctly different way to think about coverage ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)).

#### Key Takeaways

-   Costco and SCAN announced an expanded strategic partnership on August 18, 2026 — Costco's first comprehensive Medicare partnership.
-   Co-branded Medicare Advantage plans launch in two states, plus a SCAN Medigap plan in a third — states withheld pending CMS review.
-   Planned benefits include a reinvented pharmacy experience, Costco Optical and audiology integration, and Medflex over-the-counter spending.
-   A Costco membership is not required to enroll; eligibility depends on your plan and location.
-   The move builds on an October 2025 collaboration, including SCAN Health Day events at 50 Costco locations.

## The SCAN–Costco partnership, explained

On **August 18, 2026**, SCAN Health Plan and Costco Wholesale Corporation announced an enhanced strategic partnership — Costco's first comprehensive partnership with a Medicare plan, according to a joint press release ([SCAN Health Plan](https://www.scanhealthplan.com/en/about-scan/press-releases/costco-partnership)). The alliance marries SCAN's five decades of serving older adults with Costco's consumer expertise, and it extends gains the two companies had already been building since autumn 2025.

This is not a licensing deal with a single pharmacy slot in the network. It is a full product roadmap. Over the coming years, pending regulatory review and approval, the companies plan to roll out a suite of senior-focused products including a "re-invented pharmacy experience," Medflex over-the-counter (OTC) benefits, vision, audiology, and more ([Healthcare Finance News](https://www.healthcarefinancenews.com/news/costco-enters-medicare-advantage-market-through-scan-partnership)).

~5 millionMedicare-eligible people across the three target states[The Wall Street Journal via The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)

## SCAN Health Plan's track record

SCAN began in **1977** in Long Beach, California, when a group of 12 older adults grew frustrated with the care options available to them and founded the Senior Care Action Network. It launched its first Medicare health plan in **1984** and has stayed not-for-profit ever since ([SCAN Health Plan](https://www.scanhealthplan.com/lpg/scan-costco/partnership)). Today it serves nearly **460,000 members** across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington, and it is widely considered one of the strongest regional Medicare Advantage plans in the country ([Healthcare Finance News](https://www.healthcarefinancenews.com/news/costco-enters-medicare-advantage-market-through-scan-partnership)).

The numbers back that reputation. For 2026, 100% of SCAN's Star-rated members are enrolled in plans rated **4 stars or higher** by CMS (the Centers for Medicare & Medicaid Services), and SCAN has posted a 4-star rating or better in California for 13 consecutive years ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)). During the most recent Annual Enrollment Period, SCAN added roughly 127,000 new members — a 40.6% year-over-year increase — making it the largest Medicare Advantage plan in California outside of Kaiser Permanente.

SCAN's CEO, **Dr. Sachin H. Jain**, framed the partnership as a response to what older adults are asking for: "healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust" ([SCAN press release](https://www.scanhealthplan.com/en/about-scan/press-releases/costco-partnership)).

## The benefits on the 2027 roadmap

The roadmap the companies outlined goes well beyond a standard pharmacy slot. Pending CMS sign-off, SCAN and Costco plan to phase in a suite of senior-focused products, including a **reinvented pharmacy experience** built around Costco Pharmacy as a preferred, low-cost option, **Costco Optical and audiology integration** so members can use plan vision and hearing allowances directly at Costco locations, and **Medflex over-the-counter benefits** — an OTC spending card usable on health and wellness items in-warehouse ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)).

## This isn't the first time the two brands have worked together

The expanded partnership announced in August built on a smaller collaboration that began in **October 2025**, when the two companies launched the Health Action Rewards Program. Through it, select SCAN members could earn up to **$125 a year** in rewards for healthy actions — annual wellness visits, preventive screenings, and staying active — redeemable at Costco and other retailers for groceries, personal care items, and fitness gear ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)).

Around the same time, SCAN hosted "SCAN Health Day" events at **50 Costco locations** across Arizona, California, Nevada, Texas, and Washington, and members gained the ability to use their Costco Optical eyewear allowance directly at Costco. Starting January 1, 2026, SCAN members in Washington state could also use their over-the-counter and flexible spending benefits at Costco.

That history matters for one practical reason. According to SCAN's chief commercial officer, roughly **75% of SCAN members already shop at Costco regularly** — which is precisely why the partnership made sense rather than being a cold entry into an unfamiliar audience ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)).

One of the most common questions seniors ask is whether they need a Costco membership to enroll. The short answer is no. A **Costco membership is not required** to enroll in a SCAN Medicare Advantage plan — eligibility depends on the specific plan and where you live. However, certain purchases and services at Costco, such as over-the-counter items and eyewear, may require an active membership ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)). The plans appear designed to reward existing Costco shoppers rather than restrict membership to them.

## A partnership against the industry's grain

The Costco move comes at a moment when some big national carriers are pulling back. Humana has said it is discontinuing plans for 2027, and Centene, Molina, and UnitedHealthcare have made similar moves. So a well-known consumer brand actively **expanding** into Medicare — and choosing a nonprofit regional plan to do it with — stands out in a year when the industry is contracting elsewhere ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)).

## Timing and next steps for 2027

No specific launch date has been confirmed, and everything is still pending CMS review. The states where the co-branded plans will be sold have not been disclosed — the companies are withholding that until the Centers for Medicare & Medicaid Services finishes its regulatory review ([The Modern Medicare Agency](https://www.paulbinsurance.com/costco-just-entered-the-medicare-market-and-partnered-with-one-of-the-best-kept-secrets-in-senior-healthcare)). Some reporting speculates a rollout could align with Medicare's **Annual Enrollment Period (October 15 – December 7)**, but neither company has confirmed timing.

Between this partnership and Costco CEO **Ron Vachris** describing the alliance as an extension of "the trust" Costco has earned over more than 40 years — "Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment" ([SCAN press release](https://www.scanhealthplan.com/en/about-scan/press-releases/costco-partnership)) — the direction is clear even if the calendar is not. For California seniors in particular, where SCAN is the largest Medicare Advantage plan outside of Kaiser Permanente, the 2027 open enrollment season may be worth watching closely.