Medicare Advantage Plans With OTC Benefits: How to Find One for 2027
Reviewed October 5, 2026. Many Medicare Advantage plans include an over-the-counter (OTC) benefit: a set dollar amount, usually loaded each month or quarter onto a card or account, that you can spend on approved health items like pain relievers, vitamins, first-aid supplies and cold medicine. The fastest way to find Medicare Advantage plans with OTC benefits in your area is the Medicare Plan Finder at Medicare.gov, which shows whether each plan covers “over-the-counter drug benefits” and, for 2026 and 2027 plans, more detail about cost-sharing.
Quick answer: OTC benefits are an extra benefit, not something Medicare requires. Whether a plan offers one, how much it pays and where you can use it all vary by plan and county, and they can change every January. Compare 2027 plans during Open Enrollment, October 15 to December 7, 2026, and confirm the OTC details in each plan’s Evidence of Coverage before you enroll.
What is an OTC benefit in Medicare Advantage?
Original Medicare (Part A and Part B) doesn’t pay for over-the-counter products. Medicare Advantage (Part C) plans, which are run by private insurers approved by Medicare, can add extra benefits that Original Medicare doesn’t cover. Medicare’s official booklet notes that “most plans offer extra benefits that Original Medicare doesn’t cover—like vision, hearing, dental, and more” (Medicare.gov). An OTC allowance is one of those extras.
Plans typically deliver the benefit in one of three ways:
- A prepaid benefits card you use at participating stores, such as some pharmacies and big-box retailers
- A mail-order catalog you order from online, by phone or by mail
- A combined card that also holds other allowances, such as a grocery benefit for members who qualify
For a deeper look at how these cards work and which marketing claims to be wary of, read our Medicare OTC card guide.
What OTC benefits usually cover
| Usually covered (health-related items) | Usually not covered |
|---|---|
| Pain relievers, allergy and cold medicines | Prescription drugs (covered by Part D instead) |
| Vitamins and supplements on the plan’s list | Alcohol and tobacco |
| First-aid supplies, bandages and thermometers | Cosmetics and general beauty products |
| Dental care items like toothpaste and denture adhesive | Items not on the plan’s approved list |
| Incontinence supplies and some mobility aids | Gift cards and cash |
| Blood pressure monitors and similar devices on the list | Groceries, unless you qualify for a separate food benefit |
Every plan publishes its own approved product list or catalog. A product that’s covered by one plan may not be covered by another.
How to find Medicare Advantage plans with OTC benefits
- Go to Medicare.gov/plan-compare or call 1-800-MEDICARE (1-800-633-4227). Enter your ZIP code and, if you want accurate drug costs, your prescriptions.
- Choose Medicare Advantage plans and view the list for your county.
- Open the plan details. CMS’s Plan Finder shows dental, vision and hearing in detail and lists about 30 other supplemental benefits, including “over-the-counter drug benefits,” with coverage labels. CMS said that from October 1, 2025, Plan Finder began showing cost-sharing details for these benefits (CMS).
- Check the plan’s own documents. The Summary of Benefits and Evidence of Coverage list the OTC amount, how often it reloads and how to use it.
- Compare the whole plan, not just the OTC amount. Look at doctors, drugs, premiums and the out-of-pocket maximum first.
Questions to ask about any plan’s OTC benefit
- How much is the allowance, and is it loaded monthly, quarterly or yearly?
- Does unused money roll over, or does it expire at the end of each period?
- Which stores accept the card, and can I order online or by phone?
- Is there a catalog or approved product list I can see before enrolling?
- Is the benefit available to every member, or only to members with certain chronic conditions or in a Special Needs Plan?
- Is the OTC benefit combined with a grocery, utility or other allowance?
OTC benefits in Special Needs Plans
Some of the larger allowances are offered by Special Needs Plans, especially Dual Special Needs Plans (D-SNPs) for people who have both Medicare and Medicaid, and Chronic Condition SNPs. Some of these plans also offer benefits for chronically ill members that can cover items that aren’t strictly medical, such as healthy food, if the member meets the plan’s criteria. Our guide to the Medicare food allowance explains who qualifies. If you have both Medicare and Medicaid, also see Medicare Savings Programs.
Pros and cons of choosing a plan for its OTC benefit
| Pros | Cons |
|---|---|
| Saves money on items you’d buy anyway | The allowance is usually small compared with medical costs |
| Convenient ordering and home delivery | Unused amounts often expire |
| Often bundled with dental, vision and hearing extras | The plan’s network and prior authorization rules matter far more |
An OTC card shouldn’t be the main reason you choose a plan. Read the pros and cons of Medicare Advantage and compare networks in Medicare Advantage HMO vs. PPO before deciding.
How to use your OTC benefit once you enroll
- Activate the card or set up your online account as soon as it arrives.
- Check your balance before shopping through the plan’s website, app or phone line.
- Use the plan’s catalog or store locator to see eligible items.
- Spend the balance before it expires if your plan doesn’t allow rollover.
UnitedHealthcare members can see our guides to the UnitedHealthcare OTC catalog and where to use the UnitedHealthcare OTC card.
Watch out for misleading OTC and “flex card” ads
There’s no government program that gives every person with Medicare a free OTC or spending card. Ads that promise a large “Medicare allowance” usually refer to extra benefits in specific Medicare Advantage plans that aren’t available everywhere and may require you to switch plans. Never give your Medicare number to an unsolicited caller, and check any offer against the plan’s official documents or Medicare.gov.
When you can switch to a plan with OTC benefits
- Open Enrollment: October 15 to December 7, 2026, for coverage starting January 1, 2027. See Medicare Open Enrollment.
- Medicare Advantage Open Enrollment: January 1 to March 31, if you’re already in a Medicare Advantage plan.
- Special Enrollment Periods: for example, if you move or qualify for Extra Help or Medicaid.
Our Medicare plan comparison worksheet includes a line for OTC and other extra benefits.
Frequently asked questions
Do all Medicare Advantage plans have OTC benefits?
No. OTC allowances are optional extra benefits. Some plans offer them and some don’t, and the amount varies by plan and county.
Does Original Medicare cover over-the-counter items?
No. Original Medicare doesn’t pay for over-the-counter products. An OTC allowance comes only from certain Medicare Advantage plans.
How do I know how much OTC money a plan gives?
Check the plan’s Summary of Benefits or Evidence of Coverage, or look at the plan details in Medicare Plan Finder.
Can I use my OTC benefit for groceries?
Usually not. Groceries are covered only if your plan offers a separate food or healthy-food benefit and you meet its eligibility rules.
Does my OTC balance roll over?
It depends on the plan. Many plans reset the balance each month or quarter, so unused money doesn’t carry over.
This article is general information, not individual insurance advice. Benefits vary by plan and location. Medicare365 is not affiliated with or endorsed by the U.S. government or the federal Medicare program.