On August 18, 2026, Costco announced a partnership with nonprofit health insurer SCAN Group to introduce Costco-branded Medicare plans in select markets. The plans are not yet available and remain subject to regulatory approval.
For Medicare beneficiaries, the announcement could mean another coverage option in the future. But choosing health insurance involves more than choosing a familiar brand. Your coverage can affect where you receive medical care, what you pay for treatment, and how certain medical expenses may be handled if you are later injured.
Here is what consumers should know.
Costco Announces Plans To Enter the Medicare Market
Costco and SCAN plan to initially offer:
- Medicare Advantage plans in two states: These are Medicare-approved plans offered by private insurance companies as an alternative to Original Medicare.
- A Medicare Supplement plan in a third state: Also known as Medigap, this coverage works with Original Medicare to help pay certain out-of-pocket costs.
The specific states and launch dates have not yet been announced. According to SCAN Health Plan, the three initial markets collectively include approximately five million Medicare beneficiaries. The new plans remain subject to regulatory review and approval.
Costco and SCAN’s Existing Partnership
The announcement builds on an existing relationship between the companies. In October 2025, SCAN announced that Costco would become a preferred pharmacy, while eligible members gained access to certain pharmacy, vision, wellness, and supplemental benefits through Costco.
What We Know About Costco’s Medicare Plans
The Costco branded plans are expected to connect Medicare coverage with some of the healthcare services Costco already provides, including pharmacy, vision, hearing, and over-the-counter products.
However, several important details have not yet been announced, including:
- Premiums and deductibles
- Copayments and other out-of-pocket costs
- Provider networks
- Prescription drug coverage
- Specific benefits and coverage requirements
Costco membership will not be required to enroll.
Medicare Advantage, Original Medicare, and Medigap: What’s the Difference?
Because Costco plans to offer both Medicare Advantage and Medicare Supplement coverage, it helps to understand how the main options differ:
- Original Medicare: Coverage provided directly by the federal government through Medicare Part A and Part B. You can generally see any doctor or hospital that accepts Medicare.
- Medicare Advantage: Coverage offered by private insurance companies approved by Medicare. These plans provide Part A and Part B benefits, often include prescription drug coverage, and may offer additional benefits such as dental, vision, or hearing services. Provider networks and other coverage requirements may apply.
- Medigap: Supplemental insurance that works with Original Medicare and can help pay certain out-of-pocket costs. Medigap is not the same as Medicare Advantage.
What Should You Consider When Choosing Health Insurance?
Whether you are considering a future Costco branded plan or another option, look beyond the company name and advertised benefits.
Pay particular attention to:
- Your providers: Are your doctors, specialists, and preferred hospitals in network?
- Your medications: Are your prescriptions covered?
- Your costs: What will you pay in premiums, deductibles, copayments, and coinsurance?
- Coverage rules: Are referrals or prior authorizations required for certain care?
- Ongoing treatment: How does the plan cover specialists, rehabilitation, and other services you may need regularly?
Review the actual plan documents before enrolling so you understand both the benefits and limitations of the coverage.
How Can Health Insurance Affect a Personal Injury Claim?
Health insurance and personal injury claims serve different purposes, but they can overlap after an accident.
Depending on the plan, health insurance may pay for accident-related medical care such as hospital treatment, specialist visits, rehabilitation, and prescription medications.
If the injured person later receives compensation through a personal injury claim, some health plans may have reimbursement or subrogation rights for medical expenses they previously paid. Whether those rights apply depends on the type of coverage, plan terms, and applicable law.
Medicare Has Specific Recovery Rules
Medicare has specific rules when another party or insurer may be responsible for injury-related medical expenses.
In some situations, Medicare may make a conditional payment when another payer is responsible but does not pay promptly. If the beneficiary later receives a settlement, judgment, award, or other payment, Medicare may seek repayment for related conditional payments.
For Original Medicare Parts A and B, the Benefits Coordination & Recovery Center handles recovery of applicable conditional payments. Recovery involving Medicare Advantage and Part D claims is handled by the applicable plan.
Learn more about Medicare’s recovery process.
Because reimbursement obligations may apply, the total amount of a personal injury settlement is not necessarily the amount an injured person ultimately receives.
What Should Medicare Beneficiaries Do Next?
Because the Costco branded plans are not yet available, there is nothing beneficiaries need to change right now.
If the plans receive regulatory approval and become available in your area:
- Compare your coverage: See how the new plan compares with your current Medicare coverage.
- Check your providers and medications: Confirm that your doctors, hospitals, and prescriptions are covered.
- Review the costs and rules: Look at premiums, out-of-pocket costs, provider networks, and coverage requirements.
- Compare other options: Do not assume a Costco branded plan is the best fit simply because you are familiar with the company.
You can compare available plans through the official Medicare Plan Finder. Free Medicare counseling is also available through your local State Health Insurance Assistance Program (SHIP).
Why Medicare Coverage Can Matter After an Accident
Medicare coverage can become important if you are injured in an accident and another party may be responsible.
Under the Medicare Secondary Payer rules, another insurer, such as liability or no-fault insurance, may be responsible for certain accident-related medical expenses before Medicare.
In some cases, Medicare may make a conditional payment for covered medical expenses when another insurer is responsible but does not pay promptly. If you later receive a settlement, judgment, award, or other payment, Medicare may seek repayment for certain conditional payments related to the injury.
Who Handles Medicare Repayment?
If repayment is required, who handles it depends on your Medicare coverage:
- Original Medicare, Parts A and B: Medicare handles the repayment process.
- Medicare Advantage, Part C, or Medicare Part D: The private insurance plan that provided your coverage generally handles the repayment process.
You can learn more about how this works on the official CMS Medicare recovery page
Whether repayment is required, and how much may be owed, depends on the circumstances. This is one reason Medicare payment issues may need to be addressed when resolving a personal injury claim.
Injured Because of Someone Else’s Negligence?
If someone else may be responsible for your injuries, a personal injury claim can involve more than determining who was at fault. Medical bills, insurance payments, and Medicare repayment requirements may also need to be addressed.
TORKLAW represents people injured because of the negligence of others. Our attorneys can evaluate your potential claim and help address insurance and Medicare repayment issues that may affect a recovery.
If you or a loved one was injured because of someone else’s negligence, contact TORKLAW for a free consultation.
This article provides general information and does not constitute legal, insurance, or Medicare enrollment advice. Medicare requirements and insurance coverage depend on the applicable plan, law, and circumstances.
