Costco Discontinues Costco Next; Launches Medicare Plans with SCAN

Costco has quietly discontinued its Costco Next platform, a curated online marketplace, leaving members without a direct channel to access discounted products from third-party vendors.

Initially launched in 2017 and expanded significantly by 2021, Costco Next provided members with cost-effective purchasing options from nearly 100 pre-approved third-party suppliers and manufacturers by 2024. Much like similar models from Amazon and Walmart, the platform allowed external vendors to leverage Costco's extensive customer base. However, as of late August 2026, the service ceased operation without any public notice or explanation. Members are now being redirected to a webpage that lists vendors with active return policies, addressing warranties, returns, or cancellations from companies like Anker, Caraway, and Priority Bicycles.

Costco's Strategic Move into Healthcare

While Costco Next has been shelved, the retail giant is making strides in the healthcare sector by introducing store-branded Medicare plans. This new venture is in partnership with SCAN Group, a nonprofit insurer, targeting an enhanced value proposition for seniors. Though these Medicare plans will not be tied to Costco membership benefits, they offer additional coverage options beginning in two undisclosed states and a supplemental plan in a third state. Dr. Sachin Jain, CEO of SCAN Group, has emphasized the role of partnerships in elevating accessibility and integration for Medicare Advantage users.

Potential Healthcare Features

Looking ahead, the collaboration between Costco and SCAN Group may include innovative healthcare solutions such as revamped pharmacy offerings, Medicare Flex Cards offering over-the-counter benefits, and extended access to vision and audiology products. These initiatives highlight Costco's broader strategy to integrate healthcare services, aiming for seamless customer experiences both online and across physical store locations.

Impact on Insurance Professionals

For insurance professionals, Costco's movements provide a glimpse into the retail sector's expanding influence on insurance distribution. By collaborating with an established player like SCAN Group, Costco could potentially leverage its extensive footprint to reach Medicare-eligible consumers efficiently. This expansion has implications for agents and brokers specializing in Medicare plans, urging them to stay informed about emerging partnerships that could reshape consumer access and expectations in the healthcare marketplace.

• Costco Next ceased operation in late August 2026.
• Medicare plans in collaboration with SCAN are rolling out initially in two undisclosed states.
• Future healthcare initiatives may include pharmacy enhancements and Medicare Flex Cards.