A look inside the expanded partnership between SCAN and Costco

SCAN Group and Costco are teaming up to offer new Medicare products, starting with Medicare Advantage plans in two states and Medicare supplement coverage in a third. This marks Costco's first comprehensive partnership with a Medicare Advantage plan. The companies aim to expand their offerings over the next few years, which could include additional services such as pharmacy benefits, over-the-counter offerings, vision, and hearing coverage.

The partnership was first announced in October 2025, and both sides agree that aligning on the goal of providing value for members is key to its success. According to Sachin Jain, M.D., CEO of SCAN Group, this collaboration is unique because both organizations are focused on delivering value to their members rather than just to themselves.

SCAN's CEO emphasized that the partners are not competing for "nickels" and that their complementary strengths—SCAN's expertise in healthcare and Costco's retail knowledge—make the partnership effective. SCAN's co-branded plans aim to simplify the Medicare decision-making process for Costco members, who already trust the retailer's product curation.

Both companies are committed to an open dialogue with members to iterate and improve the offerings based on feedback. Jain stressed that this partnership could serve as a model for other insurers and retailers looking to create mutually beneficial relationships. Additionally, SCAN is expanding its scope beyond just Medicare Advantage, aiming to bring its unique perspective to Medicare supplement options as well.