Costco Partners with SCAN to Launch Co-Branded Medicare Advantage Plan in 2025

In a strategic expansion that further converges retail and healthcare services, wholesale titan Costco is poised to enter the lucrative Medicare Advantage arena. The company announced a pivotal partnership with the SCAN Group, a nonprofit focused on senior care, to introduce a co-branded Medicare Advantage plan. Dubbed "Costco Medicare Advantage by SCAN," the offering will launch in select regions of California in 2025, representing Costco's first direct venture into selling Medicare insurance and leveraging its immense, loyal membership base. The plan will debut during the 2025 Annual Enrollment Period for eligible beneficiaries in Los Angeles, Riverside, and San Bernardino counties. Under the agreement, SCAN Health Plan—a subsidiary of SCAN Group—will operate and administer the insurance product, bringing its specialized expertise in Medicare and senior healthcare delivery. Costco’s role will be primarily focused on distribution and marketing, positioning the plan as a value-added benefit for its members. The collaboration explicitly aims to fuse SCAN's clinical proficiency with Costco's powerful reputation for customer trust and delivering exceptional value. Key benefits of the plan are engineered to resonate with Costco’s core value proposition. They include an option for a $0 monthly premium, low copays for primary care visits, and notably comprehensive coverage for hearing aids and eyewear—categories where Costco already commands a significant retail footprint. To further integrate health and shopping, members will receive an annual $75 coupon for Costco purchases alongside other wellness incentives, creating a direct link between healthcare coverage and the retail ecosystem. This venture underscores a broader transformation, as major retailers aggressively deepen their stakes in the healthcare sector. Following similar strategic moves by Amazon, Walmart, and CVS Health, Costco’s partnership allows it to tap into the stable, high-growth senior insurance market. For SCAN, the alliance provides a direct channel to Costco’s vast and generally health-conscious customer base. Industry analysts suggest that if the initial California rollout proves successful, a rapid national expansion into other states where both entities have a presence is likely, potentially reshaping how millions of seniors access and pay for their essential healthcare needs.