Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated October 6, 2026
Costco is offering Medicare Advantage plans for the 2027 plan year. This is new, it is real, and it is narrower than most of the headlines suggest.
Here is exactly what the plan is, who actually underwrites it, where you can get it, and whether it is worth switching for.
Yes — but Costco is not an insurance company and is not becoming one.
For the 2027 plan year, Costco has partnered with SCAN Health Plan on a co-branded HMO Medicare Advantage plan. SCAN is a nonprofit Medicare Advantage carrier built specifically around older adults, and SCAN is the entity that underwrites the plan, builds the network, sets the copays and pays the claims. Costco is the retail partner.
That distinction is not a technicality. It determines who you call when something goes wrong, and it determines what the Costco name actually buys you.
The short version. You enroll with SCAN. You carry a SCAN member card. Your doctors, your drug formulary, your copays and your appeals all run through SCAN. What Costco adds is where your supplemental benefit dollars get spent, and a restructured pharmacy experience. If a claim is denied, Costco has no say in it.
The Costco plan is sold in 17 California counties and 2 Nevada counties. That is it. It is not a national plan, it is not available everywhere Costco has a warehouse, and having a Costco membership does not make you eligible if you live outside those counties.
| At a glance | Detail |
|---|---|
| Insurance carrier | SCAN Health Plan (nonprofit) |
| Costco’s role | Retail partner — not the insurer |
| Plan type | HMO |
| Plan year | 2027 — this is its first year |
| Enrollment window | October 15 – December 7, 2026 |
| Coverage starts | January 1, 2027 |
Because it is an HMO, you will have a primary care physician coordinating your care and you will need referrals to see specialists. Our guide to Medicare Advantage HMO plans covers how that works day to day, and what it costs you in flexibility.
If you are in California, see our full guide to Medicare Advantage plans in California for who else is selling in your county.
The centerpiece is a FlexEssentials allowance you can spend on over-the-counter products and health food at Costco stores, alongside a reimagined pharmacy experience through the retailer.
Most Medicare Advantage over-the-counter allowances send you to a restricted online catalogue or a limited shelf at a contracted pharmacy, and they cover medicine and basic supplies rather than food. Pointing the allowance at a warehouse you may already shop at, and extending it to health food, is a real difference rather than a marketing one.
THE HONEST TEST
This benefit is worth what your proximity to a Costco warehouse makes it worth. If you already shop there weekly, it is genuinely useful. If the nearest warehouse is forty minutes away, you are being sold a convenience you will not use, and a plan with a cash-equivalent allowance or a stronger medical benefit will serve you better. Do not switch plans for a brand name.
Specific 2027 allowance amounts, eligible item lists and any membership requirements vary by plan and county, and supplemental benefits are being trimmed across the industry this year. Confirm the exact figures for the plan sold where you live before you enroll rather than relying on the headline.
The Costco branding is the headline, but the medical coverage is what you actually live with. SCAN has built its 2027 lineup around removing copays at the point of care rather than advertising a low premium. On eligible plans that may include $0 copays for primary care and a number of specialists, $0 virtual urgent care, $0 behavioral health visits, $0 Tier 1 and Tier 2 medications, and $0 preventive dental.
Not every benefit appears on every plan, and availability varies by county. For the full picture on the carrier underwriting this plan — its star ratings, its seven-state footprint and its Special Needs Plans — see our guide to SCAN Health Plan.
A CARRIER THAT IS GROWING, NOT SHRINKING
SCAN added 127,000 new members for 2026 — growth of roughly 41% — and entered Oregon and Washington while most of the industry was pulling out of counties. If your current plan is being discontinued, that stability counts for something. See our guide to Medicare Advantage plans going away in 2027.
Costco has over the years made various insurance and member services available through third-party partners rather than selling insurance itself, and what is on offer changes. The Medicare Advantage partnership with SCAN is the live 2027 offering, and it is the only one covered on this page.
If you are looking at Costco because you want a lower-cost Medicare option generally, the retail brand is the wrong thing to anchor on. Start with which carriers sell in your county, then compare networks and drug coverage. Our 2027 Medicare Advantage plans by carrier comparison is the place to begin, and the 2027 star ratings will tell you how each one actually performs.
Work through these in order. The Costco question is the last one, not the first.
Confirm the plan is sold in your county. 17 California counties and 2 in Nevada — not statewide, and not wherever there is a warehouse.
Check your doctors by name. SCAN delivers care through partner medical groups. A group participating does not mean your specific physician does.
Check your prescriptions against the formulary. $0 Tier 1 and Tier 2 is excellent, but only if your drugs sit in those tiers.
Accept that it is an HMO. Referrals for specialists, and limited coverage outside the network. If you travel or split the year between two states, this is the wrong plan shape.
Then value the Costco benefit honestly. Measure the drive to your nearest warehouse and how often you already go. That is what the allowance is worth to you.
Compare it against the alternatives in your county. In California that includes Alignment Health Plan, which is also expanding for 2027.
The Annual Enrollment Period runs October 15 through December 7, with coverage starting January 1, 2027.
Yes. Costco is offering Medicare Advantage plans for the 2027 plan year through a co-branded HMO plan with SCAN Health Plan. Costco is the retail partner, not the insurance company — SCAN underwrites the plan, builds the network, sets the copays and pays the claims. The plan is available in 17 California counties and 2 Nevada counties.
SCAN Health Plan, a nonprofit Medicare Advantage carrier focused on older adults. You enroll with SCAN, you carry a SCAN member card, and your network, formulary, copays, claims and appeals all run through SCAN. Costco does not insure you, set your benefits or decide your claims.
In 17 California counties and 2 Nevada counties for the 2027 plan year. It is not a national plan and is not available in every area with a Costco warehouse. Medicare Advantage service areas are set county by county, so check your specific county rather than assuming your state is covered.
It is a supplemental allowance that can be spent on over-the-counter products and health food at Costco stores, paired with a reimagined pharmacy experience through the retailer. It differs from a standard Medicare Advantage over-the-counter benefit mainly in where you spend it and in covering health food rather than medicine alone. Exact 2027 amounts and eligible items vary by plan and county, so verify them before enrolling.
Membership requirements have not been fully detailed in the launch materials, so confirm this with the carrier or a licensed agent before enrolling. What is certain is that the allowance only has value if you can get to a Costco warehouse conveniently. If you do not already shop there, another plan is likely to serve you better.
It is an HMO. That means a primary care physician coordinating your care, referrals to see specialists, and limited coverage outside the plan’s network except in emergencies. If you travel often or live in two states during the year, an HMO is generally the wrong plan shape regardless of the retail partner.
Costco has made various insurance and member services available through third-party partners over the years rather than selling insurance itself, and what is offered changes. The Medicare Advantage partnership with SCAN Health Plan is the live offering for the 2027 plan year. If you are shopping for Medicare coverage, start with which carriers sell in your county rather than with a retail brand.
The Annual Enrollment Period runs October 15 through December 7, 2026, with coverage beginning January 1, 2027. You can also enroll when first eligible for Medicare, or during a Special Enrollment Period if you move, lose other coverage, or your current plan is discontinued.
If you are new to Medicare, then you can enroll in a 2027 Medicare Advantage plan up to three months prior to your Medicare Part B effective date.
Call one of our licensed insurance agents to see what the best time frame is for you to enroll, based on your current situation. You can contact them at 1-855-409-6195 (TTY 711), Mon–Fri 8am–9pm EST.
Russell Noga is the Founder & CEO of Medisupps.com and the founder of CompareMedicareAdvantage.org. A Medicare insurance broker licensed in all 50 states with 18 years in the industry, he works with other licensed agents and partners to keep plan information accurate and current for the 2027 Medicare Advantage enrollment season and beyond.