SCAN and Costco launch first Medicare Advantage plans

SCAN Health Plan and Costco have launched Costco’s first Medicare Advantage plans, with coverage set to begin Jan. 1, 2027, in 19 counties across California and Nevada. The plans pair Costco-branded benefits with SCAN’s Medicare expertise and will open for enrollment during Medicare’s annual window starting Oct. 15.

Why it matters: - The launch gives Medicare beneficiaries a new private-plan option tied to Costco’s brand and SCAN’s Medicare business. - The plans are designed to combine healthcare coverage with retail-style value on prescriptions, vision, hearing, dental and over-the-counter benefits. - Coverage starts Jan. 1, 2027, after enrollment opens during Medicare’s annual enrollment period.

What happened: - SCAN Health Plan and Costco Wholesale Corporation launched SCAN Costco Medicare Advantage (HMO) on Oct. 1, 2026. - The partnership creates Costco’s first Medicare Advantage plans. - The plans will be available to eligible Medicare beneficiaries in 17 California counties and two Nevada counties. - Enrollment runs Oct. 15 through Dec. 7 for coverage beginning Jan. 1, 2027.

The details: - The plans are available in California’s Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, Alameda, Placer, Sacramento, San Francisco, San Joaquin, San Mateo, Santa Clara, Stanislaus, Yolo, Fresno and Kings counties. - In Nevada, the plans are available in Clark and Nye counties. - The plan includes a $0 monthly premium, except for a $2 monthly premium in San Francisco, California. - Most primary care visits have a $0 copay, along with Tier 1 and Tier 2 prescription drugs. - Eligible members can receive a FlexEssentials allowance of $115 to $125 per quarter for over-the-counter items and healthy foods. - The healthy foods benefit is limited to chronically ill members who meet specific criteria. - The plan includes a $300 vision allowance and a $400 hearing aid allowance. - Transportation is included for health-related needs, including rides to Costco locations for pharmacy, hearing and vision services in most counties. - Preventive dental care is $0 in all markets, with comprehensive dental allowances of $1,000 to $2,500 in select markets. - California’s Placer, Sacramento, San Joaquin and Yolo counties offer $0 preventive dental only. - The plan provides access to low-cost prescriptions through a preferred pharmacy network that includes Costco Pharmacy and participating independent pharmacies. - Prescription fulfillment options include warehouse pickup, mail order and free delivery through Instacart. - Costco membership is not included with the plans. - Non-Costco members can still use hearing aids, eyewear and over-the-counter benefits at other retailers. - The plan also includes SCAN’s Health Action Rewards Program, which allows members to earn up to $130 for eligible health activities. - Reward-earning activities include annual wellness visits, preventive and chronic care, regular physical activity and other healthy actions. - Rewards can be used for groceries, personal care and household essentials, as well as over-the-counter products at Costco and other participating retailers. - SCAN said the plans build on a relationship with Costco that started with efforts to make medications and everyday wellness services more affordable and accessible for older adults. - The company said the broader collaboration is focused on improving the Medicare experience.

Between the lines: - Costco is using the Medicare market to extend its membership value proposition into healthcare. - SCAN is leveraging a recognizable retail partner to strengthen its appeal to older adults seeking convenience and lower out-of-pocket costs. - The benefits mix suggests the plan is built to compete on simplicity, pharmacy access and everyday value rather than on a traditional insurer-only model.

What's next: - Medicare beneficiaries can enroll during the annual enrollment period beginning Oct. 15. - Coverage for new members starts Jan. 1, 2027. - More information is available at the plan website.

The bottom line: - SCAN and Costco are turning a retail relationship into a Medicare product, with a strong emphasis on low costs, convenience and familiar brand trust.