SCAN Group and retailer Costco are broadening a partnership that began in 2025 with the introduction of co-branded Medicare products. The initial offering will include a Medicare Advantage plan available in two states and a Medicare supplement plan in a third state. Company leaders described this launch as Costco's "first comprehensive partnership" with an MA plan.
The partners said they intend to expand the suite of co-branded products over the next several years. Potential additions noted in the announcement include a new pharmacy experience, enhanced over-the-counter benefits, vision and hearing services, among other options. Specific product features and rollouts are subject to a pending regulatory review; the companies said further details will be released once that process advances.
SCAN and Costco first teamed up in October 2025 to offer Costco members discounts on medications, vaccinations and certain over-the-counter products. That earlier collaboration focused on cost savings for members at the point of retail purchase. The new effort goes further by creating packaged insurance products that carry both brands and aim to simplify the consumer buying process for older adults.
Sachin Jain, M.D., CEO of SCAN Group, told Fierce Healthcare the partnership differs from some insurer-retailer alliances that falter when each party prioritizes its own financial gain. Jain said the organizations are aligned around a core intention: creating value for members rather than jockeying over marginal revenue. "We're not arguing about nickels with our friends at Costco," he said, pointing to a collaborative tone between the parties.
A central theme for Jain is concentrating on complementary strengths. He noted SCAN will not attempt to become a grocery delivery business, nor will Costco aim to build a chain of medical clinics. Instead, the partners plan to lean into what each does best: SCAN bringing Medicare plan expertise and care coordination, Costco bringing trusted retail curation and member familiarity.
Jain argued that Medicare Advantage can be difficult for consumers to navigate, a challenge compounded by recent turbulence around star ratings and unclear distinctions between benefit options. The co-branded plans are intended to make the selection process clearer for seniors by offering choices curated under a familiar retailer’s banner. "I think the benefit of this partnership is a simplification of the buying decision, because someone else has done the work for you," Jain said. He emphasized that many people age into Medicare confused about what they should choose, and the partnership aims to reduce that confusion.
Both organizations also plan to take a humble, iterative approach to the rollout. Jain acknowledged there will be growing pains and said SCAN and Costco are committed to listening to members about what works and what needs fixing. He contrasted this approach with a more defensive posture he has seen in other collaborations, saying SCAN is "prepared to call our baby ugly, and work through some of the operational challenges," rather than engage in finger-pointing that can undermine partnerships.
The launch reflects SCAN’s push to be seen as more than a traditional Medicare Advantage company. In recent communications, SCAN has emphasized its distinct perspective on Medicare and its aim to translate that approach to supplemental coverage. The company has publicly acknowledged fractures in the health care system and framed part of its mission as reducing administrative burdens and denials for members.
Jain suggested elements of care coordination and advocacy that have been used in Medicare Advantage could be adapted to improve experiences in Medicare supplement products if implemented effectively. "More than anything, what people need today from their health plans is for us to be advocates for you, as opposed to obstacles to you," he said, characterizing the service orientation SCAN hopes to extend through the new offerings.
Partnerships between health plans and retailers or grocers have become more common in recent years. Some have succeeded in delivering convenience or cost savings, while others have faltered when operational or financial goals diverged. SCAN and Costco’s leaders suggest their alignment on member value and their willingness to iterate could help this collaboration last where others have not.
Costco brings a widely recognized consumer brand and a history of curated retail offerings; SCAN brings Medicare-specific operational expertise. Executives say the combination could provide a clearer, more user-friendly route for seniors shopping for Medicare products.
The companies said they will continue to build out the co-branded suite over the coming years. Certain planned benefits and product details—such as the proposed pharmacy experience, over-the-counter offerings, vision and hearing benefits—remain subject to regulatory review. The announcement indicated that additional specific information will be made available after that review process advances.
For now, the launch represents a deeper level of cooperation between SCAN and Costco than their initial 2025 discount program, and it signals SCAN’s interest in expanding beyond traditional MA offerings into supplemental coverage. Executives framed the effort as a testable model for future insurer-retailer collaborations that prioritize member experience and practical simplicity for Medicare consumers.
Stakeholders and consumers will likely watch for the following as the rollout proceeds:
The announcement provides a roadmap rather than a full product playbook: several details were not reported in the source and will depend on future regulatory and operational developments.
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