Costco does not directly sell its own branded major medical health insurance plan, but it partners with licensed agencies and insurers to offer a marketplace of health-related products for members, especially small businesses and some individuals.

What “Costco health insurance” usually means

For most people, “Costco health insurance” refers to:

  • Access to the CBC Health Insurance Marketplace (Custom Benefit Consultants) for Costco members, where you can get quotes for individual, family, and group medical coverage.
  • A menu of additional products like dental, vision, life, disability, critical illness, hospital indemnity, and short‑term medical plans, depending on your state.
  • Plans issued by major national and regional insurers, not by Costco itself; Costco’s insurance agency is a distributor that earns a commission from insurers.

Key features for small businesses

Costco heavily promotes health coverage options for small and midsize employers through its marketplace.

  • Medical, dental, vision, life, and disability plans are available for businesses “of all sizes,” with more potential savings as employee count grows.
  • Some case studies cited by the marketplace show employers saving around 25% on plan costs compared with prior coverage, though savings vary by company and region.
  • The marketplace is designed to simplify comparison shopping by lining up multiple carriers and plan types in one place, then routing you to licensed advisors for enrollment.

Individual and family options

Costco members can also use the marketplace for non‑employer coverage, but the details depend heavily on location.

  • Available categories often include individual and family medical, critical illness, hospital indemnity, and short‑term medical plans.
  • The marketplace site emphasizes that it is separate from the official Affordable Care Act (ACA) exchanges; ACA subsidies and eligibility are handled through Healthcare.gov or state marketplaces.
  • Because carriers and plan designs vary by state, concrete options (networks, premiums, deductibles) are only visible after entering your ZIP code and household information.

Employee health benefits vs. member marketplace

It helps to distinguish between Costco workers and Costco shoppers:

  • Costco employees receive employer‑sponsored health benefits, which are separate from the member marketplace products and can change year to year as costs rise.
  • Public information and benefits commentary suggest 2026 may bring higher deductibles and out‑of‑pocket costs across many employers, including large firms like Costco, as subsidies and insurer pricing shift.
  • Regular Costco members, by contrast, can use the marketplace as a shopping portal, but their coverage is governed by the insurer’s policy, not by Costco’s employee benefit design.

Other health‑related partnerships

Costco has also been involved in broader health‑related partnerships and perks.

  • In Michigan, for example, Health Alliance Plan (HAP) launched a Flex+ Rewards program that allows certain Medicare Advantage members to use prepaid benefit cards at Costco for over‑the‑counter health items, and in some cases healthy groceries and fuel.
  • These programs do not replace health insurance; they sit on top of existing Medicare Advantage benefits to add convenience and savings at Costco stores.

Information gathered from public forums or data available on the internet and portrayed here.