Do your clients use Medicare Advantage over-the-counter drug cards? How does that work?

Question

Anthony Castelluccio · Accepted Answer

The Over The Counter (OTC) benefits are pretty nice and most of the people I work with will use them. All of the different plans vary some on how to use them. Some plans will give you a card to use at different locations and some you can log in or phone in your order of OTC items and they are mailed to you at no additional cost. All of the plans also vary on how much they will give you in extra OTC benefits. This past year, most of the plans cut the OTC benefits down 30-50% from last year. I feel this is a direct result in how much the government will subsidize these plans and my thought process is that the next couple years, I could easily see the government continue to cut the amount of money given back to these plans. Again, just my thoughts.

Answered by Anthony Castelluccio on April 28, 2025

Agent Licensed in PA, DE, MD, NJ & VA

Answered by Anthony Castelluccio Medicare Insurance Agent

Lt Col Tim Brown · Answer

There is not a Medicare advantage over the counter drug card. There are over the counter benefits in many of the plans to buy things like vitamins, band aids, toothpaste, etc. Debit cards that are issued by some MAPD companies for over the counter items can be used at stores such as Walmart, Walgreens etc. for approved items. Most MAPD plans include the Part D prescription plans for prescriptions, not over the counter items.

Answered by Lt Col Tim Brown on May 17, 2025

Broker Licensed in TN, AL, CO & 10 other states

Answered by Lt Col Tim Brown Medicare Insurance Agent

David Bell · Answer

Over-the-counter (OTC) benefits usually work one of two ways. 

You may get a catalog or access to a website to do a mail order. You will have a monthly or quarterly credit to order any thing from the catalog. They usually don't charge any shipping.

For the second option the company will send you a debit card that will be reloaded each month/quarter, sometimes it is your membership card (look for a magnetic strip). You can use this in your favorite drugstore like Walgreens, CVS or Walmart. They use the same list for eligible items as an HSA or MSA account, usually all the aisles in front of the pharmacy.  Just use that card at the register. 

Some companies have a hybrid system using both a catalog and in store options. 

It's a great way to get vitamins, supplements, pain relievers and cold medicine.

Michael Denniston · Answer

Many of my clients are on Medicare Advantage plans that include OTC （over the counter） cards with various amounts loaded on them; Monthly, and quarterly. They use this additional benefit to order everything from toothpaste to wheelchairs. For many people this is a very important additional benefit.

Answered by Michael Denniston on June 4, 2025

Agent Licensed in FL, AL, AR & 11 other states

Answered by Michael Denniston Medicare Insurance Agent

Voss Speros · Answer

Yes most of my clients use the OTC card provided by the insurance carrier.  The carrier gives a list of stores you can use it in. At the stores on the price tags it says OTC, so you know which items  you can buy with it.

You can also order from a catalog the insurance carrier sends you or has uploaded onto your portal.  They make it pretty simple to use. Just categorize those items at check out, swipe your card and go.

Edward Smith, ChFC, CRPS, AIF · Answer

The OTC benefits may be used to cover things like, minerals, vitamins and other needs. Not all plans other these benefits and the amount allotted is different from plan to plan.

Michael Andrews · Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/do-your-clients-use-medicare-advantage-over-the-counter-drug-cards#michael-andrews

James ONeal · Answer

Yes, many Medicare Advantage plans include over-the-counter (OTC) drug cards as a benefit. 

These cards, often resembling prepaid debit cards, allow members to purchase a variety of eligible health-related items at participating retailers. 

The specific items covered and the amount available on the card vary by plan. 
Here's how it generally works:

Enrollment:
You must be enrolled in a Medicare Advantage plan that offers an OTC benefit. 

Card Issuance:
The plan will send you a card, often a prepaid debit card, specifically for OTC purchases. 

Benefit Amount:
Each plan has a specific amount allocated for OTC purchases, which may be a monthly or quarterly allowance. 

Eligible Items:
The card can be used to purchase a range of OTC medications, personal care products, first aid supplies, and other health-related items at participating retailers. 

Purchasing:
You present the card at the point of sale, and the eligible items are deducted from your allowance.

Steven Bleicher · Answer

One of the nice perks of an Advantage plan is the ordering of OTC products from the company's catalog each quarter at no cost to you. They will deliver it to your door by either the USPS or UPS. The allowance varies from company to company. If you don't use the entire amount by the end of the quarter, you lose it but the new quarter starts all over again with the same initial amount. The products are anything from toothpaste, baby powder, aspirin, mops, etc. If you have stocked up on all items needed, you can order for your relatives, neighbors and friends. Why not use this benefit?

Answered by Steven Bleicher on May 19, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Gary Henderson · Answer

some insurance companies provide these cards that are limited $ and expire. Usually once per quarter. However, the plans that offer these will usually increase your max out of pocket costs, which you incur when you are ill. Typically will be 7000-10000 dollars per year. 
The more perks they offer you for free as bait, the more it costs you when you get ill.
Avoid them

Vachik Chakhbazian · Answer

These cards allow you to purchase eligible health and wellness products at participating retailers.

Carol Thompson · Answer

Yes, most of my clients rely on the OTC benefits monthly or quarterly. 

Some carriers offer cards where you can purchase items in retail stores and some give you an option to set up a profile on their website site to order online or to call in the OTC 3rd party program to place an order monthly or quarterly.

Larry Pereiro · Answer

Yes they do, they get vitamins, supplements, pain relievers such as Tylenol and much more, toothpaste, toothbrush, healthy food items, i continence supplies, etc.

Eizel Mere · Answer

I advice all my clients to use every penny of the over the counter! It depends on the plan you have, you can have a health card that looks like an atm, you can have a separate benefits card ir you may have to order from a catalog. Feel free to contact me for mor information.

Answered by Eizel Mere on April 28, 2025

Broker Licensed in FL

Answered by Eizel Mere Medicare Insurance Agent

Tony Hardwick · Answer

Many Medicare Advantage (Part C) plans include a separate drug card benefit that provides extra savings or allowances for over-the-counter (OTC) medications or prescription drugs. These cards help lower out-of-pocket costs for items not fully covered by traditional Medicare. Over the counter items include: cold medicine, vitamins, first aid items, and other non-prescription items.

Answered by Tony Hardwick on April 28, 2025

Agent Licensed in GA, AZ, CA & 15 other states

Answered by Tony Hardwick Medicare Insurance Agent

Diana Pedersen · Answer

Medicare Advantage plans that offer over-the-counter (OTC) allowances will load the benefits either onto a prepaid debit card or on a membership card to be used per the plan guidelines for the year. This offers members a convenient way to shop online or at specific retailers for these OTC products.

Answered by Diana Pedersen on April 28, 2025

Agent Licensed in WA & ID

Answered by Diana Pedersen Medicare Insurance Agent

Brianna Douros · Answer

My clients use their OTC cards at local pharmacies, Walmart, Kroger, etc. to purchase vitamins, toothbrushes, rubbing alcohol, bandaids, etc. What they can purchase depends on their company & what their plan includes. They can sometimes use it to purchase groceries or even on their utilities as well. In addition to their healthcare card, they receive a “flex card”, “u card”, or “spending card” with a preloaded quarterly or monthly amount. Most of the time it looks like a credit card, has a number, expiration date, & CVC code. They can usually use it in store or for purchases online.

Answered by Brianna Douros on April 28, 2025

Broker Licensed in VA, CO & TX

Answered by Brianna Douros Medicare Insurance Agent

Do your clients use Medicare Advantage over-the-counter drug cards? How does that work?

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