Costco Adds Support for NationsBenefits Flex Cards

Shoppers can now use healthcare allowance cards to purchase groceries and wellness items at 600 U.S. locations.

Updated on Oct. 27, 2026 in Senior Health

Costco Adds Support for NationsBenefits Flex Cards

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Do you believe integrating health benefit cards into grocery stores makes shopping healthier for you?

Costco has expanded its payment options by accepting NationsBenefits Flex Cards at more than 600 U.S. warehouse locations. This integration allows eligible members to purchase groceries and over-the-counter wellness products using their healthcare allowances.

Why it matters

The partnership is designed to reduce friction between specialized healthcare benefits and daily shopping habits for seniors. By simplifying the checkout process, the move aims to make essential wellness goods more accessible to plan members.

The program utilizes a Basket Adjudication Service that identifies eligible items during checkout across the 600 participating U.S. warehouses. Costco currently holds the third position on the 2026 PG 100 retailer list.

The players

Costco

This membership-only warehouse club operator manages more than 900 locations worldwide, including 110 in Canada and 42 in Mexico.

NationsBenefits

This organization provides benefit solutions for healthcare plans, including the management of Flex Card programs for supplemental health allowances.

SCAN Health Plan

This health insurer collaborates with retailers to offer Medicare Advantage plans and senior-focused insurance products.

The details

At checkout, the Basket Adjudication Service automatically scans items in the customer's cart to confirm eligibility for Flex Card coverage. The system also collects de-personalized transaction data categorized by ZIP code for participating health plans.

Q3 2026: Costco reported growth in the mid-20s percentage range for its pharmacy business.
October 27, 2026: The integration of Flex Cards at U.S. locations was confirmed.

Health Landscape

This integration follows a broader retail trend of incorporating health benefit allowances into point-of-sale systems to better serve the senior demographic. The expansion marks a significant step in aligning traditional retail operations with the evolving structure of Medicare Advantage benefits.

Eligible shoppers can now apply healthcare allowance funds directly toward grocery and wellness purchases at the register. This simplifies the procurement of over-the-counter health items by removing the need for manual reimbursement claims.

The takeaway

Seniors can streamline their wellness spending by utilizing these pre-funded cards for daily necessities at participating warehouse locations. It is recommended that shoppers verify their specific plan eligibility with their health insurance provider before attempting to use the card at checkout.