If you have a Medicare Advantage plan, you may be eligible for an Over-the-Counter (OTC) allowance, which helps cover everyday health and wellness items. Yet, many beneficiaries either don’t realize they have this benefit or aren’t sure how to use it effectively. That means they could be missing out on savings for essential products that support their health and well-being.
What Is an OTC Allowance?
Many Medicare Advantage (Part C) plans provide a set dollar amounteither monthly or quarterlyto help you purchase health-related items, such as:
- Pain relievers (aspirin, ibuprofen, acetaminophen)
- Cold and allergy medications (antihistamines, cough drops, decongestants)
- Vitamins and supplements (multivitamins, calcium, fish oil)
- First-aid essentials (bandages, antiseptics, thermometers)
- Oral care (toothpaste, toothbrushes, denture cleaner)
- Vision products (reading glasses, artificial tears, eye drops)
- Personal hygiene items (incontinence supplies, hand sanitizers)
If you’re not using your OTC allowance, you could be leaving money on the table. The key is knowing how to access and maximize this benefit.
How to Use Your OTC Allowance
Medicare Advantage plans offer OTC benefits in different ways. Here’s how most plans provide access:
Prepaid OTC Cards
A reloadable card can be used at participating pharmacies and retail stores like CVS, Walgreens, and Walmart.
Mail-Order Catalogs
Some plans allow beneficiaries to order OTC items from a catalog and have them delivered to their home at no extra cost.
Online Shopping
Many plans have online portals where you can browse eligible products and place an order for home delivery.
In-Store Purchases
Select plans work with major retailers where you can use your benefit at checkout, just like a gift card.
Key Questions to Ask
Before making a purchase, check with your plan provider to clarify:
- How is my OTC benefit provided?
- Where can I use it?
- What items are covered?
- Does my allowance expire each month or quarter?
Understanding the details helps you make the most of your benefit and avoid missing out on savings.
Tips to Maximize Your OTC Allowance
- Use it regularly. Many plans have a “use it or lose it” policy, so set a reminder to make purchases before funds expire.
- Plan ahead. Stock up on seasonal essentials like allergy meds in spring or flu relief products before winter.
- Buy in bulk when possible. If your plan allows, purchase larger quantities of frequently used items.
- Check for extra savings. Some retailers offer discounts on OTC products, letting you stretch your allowance further.
- Review your plan’s approved product list. Covered items can vary by plan, so make sure you’re taking full advantage of what’s available.
How Beneficiaries Are Using Their OTC Benefits
Mary, 68, used to pay out of pocket for vitamins. Now, she orders a three-month supply through her plan’s OTC benefit, saving her money every quarter.
John, 72, struggles to get to the pharmacy, so he orders first-aid supplies and pain relievers through his plan’s mail-order catalog for free home delivery.
Susan, 70, discovered her plan provides a prepaid OTC card. Now, she uses it every month to buy toothpaste, reading glasses, and lotionwithout spending extra cash.
Don’t Let Your OTC Benefit Go to Waste
If you have an OTC allowance, make sure you’re using it! Many Medicare beneficiaries unknowingly miss out on valuable savings simply because they don’t take full advantage of their plan’s benefits.
At Rock Meadow Insurance Services, we specialize in helping Medicare beneficiaries navigate their benefits. Schedule an appointment today, and let’s review your plan together. If you’re unsure whether your plan includes an OTC benefitor if you need help using itcontact us today to ensure you’re getting the most out of Medicare.
📞 Book Your Appointment Now – Make sure you’re maximizing your Medicare benefits!
