SCAN and Costco Will Launch Medicare Advantage Plan
The co-branded HMO will offer coverage to eligible seniors in California and Nevada starting in 2027.
Updated on Oct. 6, 2026 in Senior Health
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Beginning January 1, 2027, SCAN Health Plan will offer a co-branded Medicare Advantage HMO in 17 California counties and two Nevada counties. The plan is designed to provide value for members, including those who do not hold a Costco membership.
Why it matters
This partnership reflects a broader trend of retail expansion into the senior health market to offer competitive benefits and reduced costs. The plan aligns with shifting federal rules that allow for more flexible marketing of Medicare Advantage options for the projected 34 million enrollees.
CMS projections indicate 34 million total enrollees in Medicare Advantage by 2027, with the average monthly premium expected to decrease from $14.37 to $12. This federal forecast provides the baseline for the rollout of new, co-branded insurance offerings.
The players
SCAN Health Plan
A Medicare Advantage insurer providing health coverage and specialized care programs for seniors.
Costco
A membership-based warehouse retailer that has expanded into the senior health services market.
Centers for Medicare & Medicaid Services (CMS)
The federal agency overseeing the Medicare program and setting regulations for health insurance marketing.
The details
The plan operates as a Health Maintenance Organization (HMO), which requires enrollees to utilize a specific network of providers for their medical care. Benefits include $0 monthly premiums and $0 copays for primary care visits, along with quarterly allowances for over-the-counter health items and specific vision and hearing aid support. Enrollment functions through the standard Medicare process under recently updated federal rules that permit expanded marketing language for these plans.
Timeline
Oct. 15, 2026: Medicare open enrollment begins.
Dec. 7, 2026: Medicare open enrollment ends.
Jan. 1, 2027: Coverage for new plans begins.
Health Landscape
This plan reflects the evolving integration of retail brands into Medicare Advantage, following the CMS Medicare Advantage marketing rule changes that allow for more descriptive plan outreach. It mirrors the strategy seen with past collaborations, such as the 2024 co-branded plans from Alignment Healthcare and Walgreens.
Seniors residing in the covered California and Nevada regions should review their current coverage needs to see if an HMO structure fits their provider preferences. It is worth discussing this plan option with a doctor or a Medicare advisor during the upcoming fall enrollment period.
The takeaway
Retail-backed Medicare Advantage plans are an emerging option for seniors looking for bundled benefits and lower out-of-pocket costs. Always confirm that your preferred primary care physicians are included in any new HMO network before committing to a plan change during open enrollment.
Further reading
Learn more about navigating your insurance options in the Senior Health section.
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