Costco and Nonprofit Insurer SCAN Announce Plans to Co-Sell Medicare Advantage Coverage, Pending Federal Approval

Costco Wholesale and SCAN Health Plan, one of the larger nonprofit Medicare Advantage insurers, announced August 18 that they will develop and market a suite of jointly branded senior health insurance products. The initial rollout calls for co-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third, all pending approval by the Centers for Medicare and Medicaid Services. The companies declined to name the target states, citing regulatory restrictions on disclosure during the approval process.

SCAN currently serves approximately 460,000 members in California, Arizona, Nevada, Texas, New Mexico, and Washington. Under the partnership, products would be sold inside Costco stores, through licensed insurance agents, and online.

Federal rules prohibit tying enrollment in a Medicare plan to retail membership. Both companies confirmed that a Costco membership will not be required to enroll in or keep any of the joint products.

CMS must review and certify any new Medicare Advantage or supplement product before it can be marketed and sold. If regulators approve the plans in time, they could appear in the 2027 market. CMS is expected to release the official 2027 Medicare plan landscape in mid-to-late September 2026, setting the window when beneficiaries can compare premiums and benefits during open enrollment, which runs October 15 through December 7.