SCAN and Costco Launch Costco’s First Medicare Advantage Plans in California and Nevada
These plans will be available to eligible Medicare beneficiaries in 17 counties in California and two counties in Nevada beginning January 1, 2027.
“Our deep partnership with Costco is grounded in a shared commitment to delivering quality, value and a better experience for the people we serve,” said Martin Esquivel, Chief Product Officer at SCAN Health Plan. “We’re excited to build on that foundation by pairing Costco’s trusted member experience with SCAN’s Medicare expertise to offer older adults a new and differentiated healthcare experience.”
“Entering Medicare Advantage is a natural extension of our commitment to delivering quality and value for our members,” said Richard Stephens, Senior Vice President of Pharmacy at Costco. “Working with SCAN allows us to extend our values into healthcare in a meaningful way to create a Medicare offering that reflects what our members have come to expect from Costco.”
SCAN Costco Medicare Advantage (HMO) is designed to give older adults greater value, convenience and access by combining quality healthcare coverage with Costco services and offerings they may already use. Costco membership is not included with the SCAN Costco Medicare Advantage (HMO) plans and non-Costco members can get their hearing aids, eyewear, and use over-the-counter benefits at other retailers.
Key benefits and availability can vary by plan and service area, and may include:
• $0 monthly plan premium.*
• $0 copays for most primary care provider visits and Tier 1 and Tier 2 prescription drugs.**
• Between $115-$125 per quarter in FlexEssentials allowance for eligible over-the-counter (OTC) items and healthy foods, helping members make their dollars go further with Costco’s exceptional pricing. Quarterly limits may apply within the annual allowance. Healthy foods is a special supplemental benefit for chronically ill members who qualify according to specific criteria.
• $300 vision allowance for eligible vision care and eyewear.
• $400 allowance towards hearing aids.
• Transportation provided for a wide range of health-related needs, including to Costco locations*** to access the pharmacy, hearing and vision care, and more.
• $0 preventive dental care in all markets. Comprehensive coverage between $1,000 to $2,500 of dental allowance in select markets.****
• Access to low-cost prescriptions through the plan’s Preferred pharmacy network, including Costco Pharmacy and participating independent pharmacies.
• A reimagined pharmacy experience with flexible and convenient prescription access through Costco Pharmacy, with fulfillment options that include warehouse pickup, mail order and free delivery through Instacart.
The plan will also offer SCAN’s Health Action Rewards Program, designed to encourage members to take proactive steps toward better health. Members can earn up to $130 in rewards for completing eligible activities, including annual wellness visits, preventive and chronic condition care, regular physical activity and other healthy actions. Rewards can be used toward a broad range of everyday health and wellness needs, including groceries, personal care and household essentials, over-the-counter products at Costco and other participating retailers.
The new plan builds on a relationship between SCAN and Costco that began with efforts to make medications and everyday health and wellness services more affordable and accessible for older adults and has grown into a broader collaboration focused on improving the Medicare experience. Each organization brings decades of experience serving their respective members and a longstanding commitment to quality and value.
SCAN Costco Medicare Advantage (HMO) is available in California’s Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, Alameda, Placer, Sacramento, San Francisco, San Joaquin, San Mateo, Santa Clara, Stanislaus, Yolo, Fresno, and Kings counties and in Nevada’s Clark and Nye counties. Medicare beneficiaries can enroll in SCAN Costco Medicare Advantage (HMO) during the Medicare Annual Enrollment Period, October 15 through December 7, for coverage beginning January 1, 2027.
For more information on the plan and the SCAN and Costco partnership, please visit www.scandifference.com/costco.
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*Except for $2.00 monthly premium in San Francisco, California
**Prescription drug costs may vary depending on the plan, county, pharmacy type, days’ supply, Part D benefit phase, and whether the member receives “Extra Help.”
***Excluding California’s Fresno, Kings, Alameda, San Mateo and San Diego counties.
****California’s Placer, Sacramento, San Joaquin, and Yolo counties offer $0 preventive dental only.
SCAN Health Plan is an HMO plan with a Medicare contract. Enrollment in SCAN Health Plan depends on contract renewal.
Other providers and pharmacies are available in SCAN Health Plan’s network.
About SCAN
SCAN Group is a mission-driven not-for-profit organization dedicated to addressing the biggest issues in healthcare for older adults, including chronic illness, access to care, homelessness, inequities, and loneliness. SCAN Group’s SCAN Health Plan is one of the nation’s foremost not-for-profit Medicare Advantage plans and serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington. Independence at Home, a SCAN Health Plan community service, provides vitally needed services and support to seniors and their caregivers. Since 2020, SCAN has also launched a portfolio of mission-aligned medical groups, including Healthcare in Action, Welcome Health and myPlace Health, each of which focuses on meeting the needs of older adults. Across all its entities, SCAN serves about half a million members and patients. To learn more, visit www.thescangroup.org and www.scanhealthplan.com.
Y0057_SCAN_22814_2027_M 10012026
Seffrah Orlando
SCAN Group
+1 562-508-6781
sorlando@scanhealthplan.com
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