What to Know About Costco’s New Medicare Advantage Plans: ‘It Is a Different Approach’
The big-box store is partnering with SCAN Health Plan to offer coverage to some seniors
Key Takeaways
- Costco is partnering with SCAN Health Plan to sell Medicare Advantage plans.
- The Medicare Advantage plans will not be available in every state.
- Pricing and exact locations for the new Medicare plans haven't been announced yet.
Costco recently announced that they will be selling a select number of Medicare plans. Yes, you read that right: The big-box store will be selling Medicare Advantage, also known as Medicare Part C and Medicare Supplement, also known as Medigap, plans to seniors soon. This announcement comes after Costco’s heavy push to sell health-related items, including hearing aids, glasses, contacts and GLP-1s and other prescription medications. To learn more about this announcement, including how to know if you qualify for Medicare at Costco, keep scrolling!
What to know about Medicare at Costco
Earlier this week, Costco and the health insurance agency SCAN Health Plan (SCAN) announced that certain Costco locations will start selling Medicare Advantage plans in two states and one Medicare Supplement plan in a third state. As of publication, the companies have not shared which locations will offer these insurance plans, but since SCAN only offers Medicare Advantage plans in Arizona, California, Nevada, New Mexico, Texas and Washington state, it’s safe to assume that the deal will only be offered there.
“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,” Sachin H. Jain, CEO of SCAN Group and SCAN Health Plan, said in a statement. “Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust. Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent while delivering the quality, value and service both of our organizations are known for.”
How much does a Medicare plan at Costco cost?
As of publication, the cost of a Medicare Advantage plan has not been shared. It also has not been revealed what the plans offered by SCAN will include, but we do know a free Costco membership will not be included, since federal rules don’t allow health insurance plans to include free store memberships as part of their coverage.
“For more than 40 years, Costco has consistently listened to our Members and earned their trust delivering consistent value on essential goods and expanding our health service offerings,” Ron Vachris, CEO of Costco said in the same statement. “Selecting SCAN as our partner to deliver a better healthcare experience for seniors is an extension of that commitment. We have developed a shared understanding of what matters most to the seniors we serve. Deepening our partnership allows us to build on that foundation and create value for our Members.”
How to qualify for a Medicare plan at Costco
Nationwide, anyone age 65 years and older qualifies for Medicare, meaning once the insurance plan is offered through Costco, people of that age will be able to enroll in the program. The one caveat: Seniors must enroll in a plan in the state they live in, meaning they must live near a Costco that is offering the plan.
There is also no information on when the plans will be available, meaning that even if seniors do qualify for a Medicare Advantage plan at Costco, they might not be able to enroll in it for 2027, since open enrollment begins on October 15 and ends on December 7, 2026.
“I think the interesting thing about Costco’s entry into Medicare Advantage is that it gives plans another way to reach people. A lot of Medicare enrollment has traditionally occurred through brokers, and partnerships like this create an alternative channel by putting a plan in front of consumers through a brand they already know and trust,” Josh Schultz, head of Government Affairs at the healthcare billing company Softheon, says. “More broadly, I think this is something we could see more of as Medicare Advantage plans look for new ways to reach consumers. It is a different approach to enrollment and marketing, and it will be interesting to see how successful these partnerships are over time.”
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