Does Costco Take OTC Cards? Medicare Flex Cards at Costco (2027)

Reviewed October 22, 2026. Does Costco take OTC cards? Yes, in many cases. Costco says it “now accepts FSA, HSA and Medicare Advantage Flex Benefits Cards at every checkout.” But your card only pays for items your plan covers, and only if your plan’s card network includes Costco. For 2027, the SCAN Costco Medicare Advantage plans in California and Nevada are built around shopping at Costco.

Quick answer: Before you go, check your card’s store finder or call the number on the back of your card to confirm Costco is a participating retailer for your plan. At checkout, eligible OTC items (and groceries, if your plan includes a food benefit you qualify for) are paid from your card, and you pay for anything else another way. Benefits vary by plan and county, so check your plan’s Evidence of Coverage.

Does Costco accept OTC cards? Carrier by carrier

Sources: Costco: FSA, HSA and Medicare Advantage Flex Benefits Cards, SCAN 2027 Summary of Benefits: SCAN Costco Medicare Advantage (HMO), San Diego and UnitedHealthcare: food, OTC and utility bill credit.

Why Costco accepting “flex cards” doesn’t guarantee your card works

Medicare Advantage benefit cards look like regular debit cards, but they’re limited cards. CMS’s rules for 2027 require supplemental-benefit debit cards to be electronically linked to the items and services the plan covers and limited to the plan year (CMS CY 2027 final rule fact sheet). In practice, that means:

• The store’s checkout system has to recognize which items are eligible for your plan.
• Your plan, or the company that runs its card, decides which stores are in its network.
• Items that aren’t eligible are declined on the card, and you pay for them another way.

So Costco’s statement tells you its checkouts can process these cards. Your plan’s store finder tells you whether your specific card is set up to work there.

SCAN Costco Medicare Advantage plans for 2027

SCAN and Costco launched co-branded Medicare Advantage plans for 2027. SCAN’s October 1, 2026 announcement lists a FlexEssentials allowance of “between $115-$125 per quarter” in 17 California counties, including Los Angeles, Orange, Riverside, San Bernardino, San Diego, Sacramento, San Francisco and Santa Clara, and in Clark and Nye counties in Nevada (SCAN and Costco announcement).

Source: SCAN 2027 Summary of Benefits for the San Diego plan. The amount in other counties may differ, so check the Summary of Benefits for your county. If you’re thinking about a SCAN Costco plan, compare it on more than the card: doctors, drug costs and the out-of-pocket maximum matter more for most people.

Can you buy food at Costco with an OTC card?

Only if your plan includes a food or grocery benefit and you qualify for it. A standard OTC allowance covers health items, not groceries. Grocery money in Medicare Advantage is usually a Special Supplemental Benefit for the Chronically Ill (SSBCI), which plans can offer only to members who meet chronic-condition rules. The SCAN Costco San Diego plan is different: its 2027 allowance covers OTC products and groceries.

Read our guide to the Medicare grocery benefit for who qualifies.

What can you buy at Costco with an OTC card?

That depends on your plan’s eligible item list. Typical OTC categories include:

• Pain relievers and cold, flu and allergy medicine
• First aid supplies
• Vitamins and supplements your plan allows
• Oral care and personal care items
• Incontinence products

Costco sells many items in bulk sizes. If a bulk pack costs more than your remaining balance, you’ll pay the difference with another payment method. Check your balance before you shop; our OTC card balance guide shows how for each carrier.

How to use an OTC card at Costco

1. Confirm Costco is in your card’s network using your plan’s store finder, app or the phone number on the card.
2. Check your balance and when it resets.
3. Bring your Costco membership card. Costco is a membership warehouse, so plan on needing your membership to shop in the warehouse.
4. Pay with your benefit card first at checkout. Eligible items are covered up to your balance.
5. Pay the rest with another payment method Costco accepts.
6. Keep your receipt in case you need to ask your plan about a declined item.

If Costco isn’t on your card’s store list

Most Medicare Advantage cards work at large pharmacy and discount chains. Depending on your plan, you may have better luck at:

• Walmart: see our Walmart OTC card guide
• Target: see does Target accept OTC cards
• CVS: see CVS OTC benefits
• Online: see does Amazon accept OTC cards

UnitedHealthcare members can also read where to use the UnitedHealthcare OTC card.

OTC cards vs. HSA and FSA cards at Costco

Costco’s announcement covers FSA, HSA and Medicare Advantage flex benefits cards together, but they’re different. An HSA or FSA card spends your own pre-tax money under IRS rules. A Medicare Advantage OTC or flex card spends an allowance your plan gives you, under your plan’s rules. The IRS says that once you are enrolled in Medicare, you can’t contribute to an HSA (IRS Publication 969), so for most Medicare members the plan’s benefit card is the one that matters.

Picking a 2027 plan with a benefit card you can use at Costco

If shopping at Costco matters to you, look for it in the plan’s Summary of Benefits or card materials, not only in ads. You can change Medicare Advantage plans during Open Enrollment, October 15 to December 7, 2026, for coverage starting January 1, 2027. Compare plans with the Medicare Plan Finder and our list of Medicare Advantage plans with OTC benefits. Our OTC card guide explains how these cards work.

Frequently asked questions

Does Costco take OTC cards?

Costco says it accepts Medicare Advantage flex benefits cards at every checkout. Whether yours works depends on whether Costco is in your plan’s card network and whether your items are eligible.

Does Costco take the UnitedHealthcare UCard?

UnitedHealthcare doesn’t name Costco on its UCard pages. Search for Costco in the UCard Hub Store Finder before you shop.

Can I use my OTC card for food at Costco?

Only if your plan includes a grocery benefit you qualify for, such as the SCAN Costco plans for 2027, which cover OTC products and groceries.

Do I need a Costco membership to use my OTC card there?

Costco is a membership warehouse, so plan on needing a membership to shop in the warehouse. SCAN Costco plan members should check their 2027 plan materials for any membership-related benefit.

Can I use my OTC card on Costco.com?

Costco’s statement is about checkouts. For online orders, check your plan’s card materials or call the number on your card.

What happens if my OTC balance doesn’t cover the whole purchase?

You pay the rest with another payment method.

This article is general information, not individual insurance advice. Benefits vary by plan and county; check your plan’s Summary of Benefits and Evidence of Coverage. Medicare365 is not affiliated with Costco, SCAN, UnitedHealthcare, any other insurer or the U.S. government.

Official sources

• Costco: FSA, HSA and Medicare Advantage Flex Benefits Cards
• SCAN 2027 Summary of Benefits: SCAN Costco Medicare Advantage (HMO), San Diego
• SCAN and Costco announcement (October 1, 2026)
• UnitedHealthcare: food, OTC and utility bill credit
• CMS: Contract Year 2027 Medicare Advantage and Part D final rule
• Medicare.gov: Medicare Plan Finder