SCAN Health Plan Will Launch Co-branded Plan With Costco
The 2027 Medicare Advantage HMO will be available in select California and Nevada counties.
Updated on Oct. 6, 2026 in Senior Health
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SCAN Health Plan is set to launch a co-branded Medicare Advantage HMO in 17 California counties and two Nevada counties starting Jan. 1, 2027. The plan will offer $0 monthly premiums and $0 primary care copays to enrollees, with no requirement for a Costco membership.
Why it matters
The collaboration marks an expansion for Costco into the Medicare Advantage sector, aiming to provide increased value for its members as federal rules begin to relax marketing restrictions for these plans. This shift allows for more aggressive plan promotion and updated guidelines for insurance agents assisting beneficiaries.
The plan offers a $125 quarterly allowance for over-the-counter items, a $400 hearing aid allowance, and rewards valued at up to $130. This reflects broader projections where CMS estimates average monthly premiums for Medicare Advantage will fall to $12.
The players
SCAN Health Plan
This organization is a long-standing Medicare Advantage plan provider that focuses on senior health and coordinated care services.
Costco
This global retail giant operates a chain of membership-only warehouse clubs that has expanded into health and wellness services for its members.
Centers for Medicare & Medicaid Services
This federal agency is responsible for overseeing the Medicare and Medicaid programs and setting the national rules for healthcare plan coverage.
Alignment Healthcare
This healthcare company is known for its Medicare Advantage plans and previously established co-branded partnerships with retail pharmacies like Walgreens.
The details
The HMO functions as a network-based plan, requiring enrollees to use specific in-network providers to access benefits. While the plan offers extensive coverage, including a $300 vision allowance, it operates under new federal guidelines that permit the use of superlative language in marketing materials and remove the requirement for agents to refer callers to State Health Insurance Assistance Programs.
Timeline
Medicare open enrollment begins Oct. 15, 2026.
Medicare open enrollment ends Dec. 7, 2026.
Coverage for new plans begins Jan. 1, 2027.
Health Landscape
This partnership follows the CMS 2027 Medicare Advantage marketing rule changes, which provide a new framework for how health plans market their offerings to seniors. The move mirrors a broader industry trend seen in 2024 when Alignment Healthcare and Walgreens launched similar co-branded plans to capture market share.
Seniors residing in the participating California and Nevada counties can access $0 premium plans that include hearing and over-the-counter allowances starting in 2027. Prospective members should review the in-network provider lists closely, as the HMO structure requires using specific medical facilities to maintain coverage.
The takeaway
Medicare Advantage plans are increasingly leveraging retail partnerships to provide comprehensive benefits like over-the-counter allowances and rewards. Beneficiaries should prioritize reviewing provider networks during the enrollment window to ensure the HMO coverage aligns with their existing medical needs.
Further reading
For more information on navigating healthcare benefits, visit the Senior Health section.
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