Isn't it suspicious that Medicare Advantage plans offer gift cards and incentives to enroll?

Question

Diana Garner · Accepted Answer

I do not feel it is suspicious, but it is against regulations. Offering such gift cards to entice a beneficiary to enroll is not permitted.

Offering gift cards to beneficiaries for completing health assessments is permitted, but not for enrollment.

Steve and Sue Brauer · Answer

Enrolling in a Medicare Advantage plan offers incentives because Medicare is big business. Remember, all Advantage plans must provide the same coverage that Original Medicare covers and usually have many "extra" benefits. It's just a different model for administering Medicare.

Answered by Steve and Sue Brauer on April 14, 2025

Broker Licensed in AZ & CA

Answered by Steve and Sue Brauer Medicare Insurance Agent

Terri Reagin · Answer

I don't know of any legitimate advantage plans gift cards. The only legal incentive I'm aware of is the "GIVEBACK" feature which gives back a certain portion of the part B premium on your social security check. Other plans may have features like food card benefits or dental/vision plans as part of the package of the plan. If someone is either advertising a gift card or promising a gift card to enroll, then they are doing so against CMS guidelines and could lose licensing if found out.

Answered by Terri Reagin on August 18, 2025

Broker Licensed in OK, AR, CO & 6 other states

Answered by Terri Reagin Medicare Insurance Agent

William Lawler · Answer

No, it is not suspicious. Competition is fierce in the Medicare Advantage arena and insurance companies will offer all kinds of different incentives to encourage you to enroll in their plan. Remember Joe Namath and Jimmy Walker? Do you think they are experts on Health care?

Answered by William Lawler on June 16, 2025

Broker Licensed in MO, FL, IA & 12 other states

Answered by William Lawler Medicare Insurance Agent

Jonathan Potter · Answer

Medicare advantage plans aren’t allowed to be offering gift card or incentive to enroll. These rules come from cms. If you are getting these kind of offers you should be suspicious.

Answered by Austyn Harris on August 1, 2025

Broker Licensed in Ut, ID & WY

Answered by Austyn Harris Medicare Insurance Agent

Joseph Meyers · Answer

They are not allowed to offer incentives to induce enrollments. I advise prospects and clients to be wary of offers like this.

Daniel Maisel · Answer

The question begins with an improper premise.

Labyrinth plans may have a reward for caring for your health. 

But I do not see plans giving enticements of gift cards to enroll.

Eli Roque · Answer

IF THAT IS HAPPENING THEN THEY MUST BE REPORT TO MEDICARE BECAUSE THAT GOES COMPLETELY AGAINST THE RULES .MEDICARE PLAN OR IT AGENT/BROKERS CAN'T OFFER GIFT CARDS OR INCENTIVES FOR BENEFICIARIES TO ENROLL IN THEY'RE PLAN.

Answered by Eli Roque on August 2, 2025

Broker Licensed in AZ, CA, FL & 8 other states

Answered by Eli Roque Medicare Insurance Agent

Michael Wehner · Answer

Medicare Advantage plans are not allowed to offer any kind of inducements to get someone to enroll in a plan. If you are being offered some sort of inducement to enroll in a plan, that is not the Medicare Advantage plan offering that, but someone who is not acting ethically.

Answered by Michael Wehner on August 26, 2025

Agent Licensed in IN, KY, NC, OH, PA & SC

Answered by Michael Wehner Medicare Insurance Agent

Joel Hill · Answer

That’s a great question, and this is going to be a bit of a long answer because there’s a lot to think about with it. 

I’m guessing you’re talking about the over the counter cards or the healthy foods benefit cards.  The grocery cards you’ve heard about are not incentives to enroll, they’re actually benefits included in certain Medicare Advantage plans. These cards are typically part of what’s called an ‘over-the-counter (OTC) or healthy foods benefit,’ and they’re meant to help members afford nutritious food, which supports better health outcomes. 

As far as gift cards, Medicare has strict rules that prohibit offering gifts over a certain value to influence enrollment decisions. What you typically see are small, government-approved tokens, usually under $15, used to encourage people to attend educational events or complete health assessments after they’re already enrolled. These are designed to promote preventive care and overall wellness, not to sway anyone’s plan choice.

The grocery cards or Flex Cards you see advertised, especially with dual-eligible Medicare Advantage plans, are not sign-up incentives. They’re actually approved supplemental benefits offered to people who qualify for both Medicare and Medicaid.

These benefits are designed to support low-income individuals with things like groceries, over-the-counter items, or utilities, depending on the plan. The government allows Medicare Advantage plans to provide these extra benefits to improve health outcomes and help members manage chronic conditions.

So, it’s not about getting a gift for enrolling, it’s about providing real, ongoing support to those who qualify.

Providing the best healthcare plan for each individual should be the focus of any agent when helping a client with a healthcare plan.

Steven Bleicher · Answer

There are rules in this area which are found on Medicare.gov. For example, if you attend an educational event, whomever is the host cannot specify names of ANY insurance companies that she/he is appointed with. AND by the same token, a gift card cannot be handed out as THAT IS ILLEGAL since that is considered to be "cash"! BUT, she/he can have light snacks available at a single event as long as it does not cost more than $15.00 per attendee. Anything valued more than that can cause a fine to be levied and a refresher course to be given to the agent.

Answered by Steven Bleicher on April 21, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Steve Houchens · Answer

I don’t see it as suspicious. Some plans offer additional extra benefits but these shouldn’t be used as incentives to sell or for a client to buy. Different plans may offer different things to set them apart from other carriers but your decision on which plan to purchase should never be the reason to but that plan but to pick a plan that best fits your personal medical needs.

Answered by Steve Houchens on April 10, 2025

Agent Licensed in KY & TN

Answered by Steve Houchens Medicare Insurance Agent

Yasmery Vargas · Answer

Medicare advantage plans don't offer incentives to enroll. While there are a wide variety of plans out there, Health Insurance companies are just trying to encourage recipients to utilize their insurance to support good health Maintenance. All Medicare advantages are different and may cater to areas differently. All Medicare advantages are different and may offer additional benefits based on financial eligibility. Low-income recipients may be eligible for more benefits, than a recipient who is not classified as low-income.

Answered by Yasmery Vargas on April 15, 2025

Agent Licensed in PA

Answered by Yasmery Vargas Medicare Insurance Agent

Anna Davis CIC-RSSA · Answer

Yes, that’s definitely suspicious—and illegal. No one is allowed to offer you any incentive to enroll in a Medicare plan. That’s a major red flag and a violation of CMS rules.
Some plans can offer small gift cards or incentives after enrollment, but only for things like getting a routine mammogram or prostate cancer screening—to encourage preventive care and help you stay healthy.
But if someone is offering you something to enroll?
Run!

Dionisio Guillermo · Answer

No, this part of their marketing strategy which is allowed by Medicare, however, prospective enrollees must consider the value of the plan such as coverage, cost, etc.

Andrew Firmin · Answer

I am not aware any insurance plans that offer gift cards and incentives to enroll. Actually that is specifially prohibited by your states Division of Insurance. 

I do think much of the advertising around Medicare Advantage plans - highlighting the annicillary benefits offered is a bit misleading. This is why it is important to work with an independent broker who represents multiple insurance companies AND shows you both supplemental (Medigap) plans and Advantage plans. The independent broker can help you understand the pro's and con's of each and help you identify which option is most suitable for your particular option. 

An important question to ask anyone helping you is: Are you an independent broker and how many different insurance companies do you represent. And will you show me both Supplemental and Advantage plans. You want a broker who will show you both options and discuss the pros and cons of each. And you want an independent broker who represents multiple insurance companies.

Shannan Pruitt · Answer

Medicare Advantage plans by federal law cannot offer an enticement to get enrollments into their plans. That’s the prime reason Medicare agents are not allowed to even buy you a meal at a carrier specific sales event. There are no Medicare Advantage plans offering gift cards or anything else to get you to sign up for a plan and if an agent is offering you a gift card or anything else to entice you it’s illegal and maybe you might want to find a new agent that is federally compliant. I don’t think you would hire a convicted felon that robbed the store to come in and clean your house. You would want to deal with someone honest, law abiding and trustworthy. Would you not want the same with your Medicare Agent/Broker? Someone you can trust, law abiding and trustworthy?

Answered by Shannan Pruitt on June 23, 2025

Broker Licensed in AR, MO, OK & TX

Answered by Shannan Pruitt Medicare Insurance Agent

Fred Manas · Answer

Yes, it can be suspicious when Medicare Advantage plans offer gift cards and incentives to enroll, as it can be a sign of potential fraud or misleading marketing. While some legitimate plans use incentives to attract new members, others may use these tactics to lure people into providing personal information or enrolling in plans that aren't in their best interest. 
Elaboration:
Fraud and Abuse Concerns:
The Office of Inspector General (OIG) has issued special fraud alerts highlighting suspicious characteristics of Medicare Advantage marketing schemes, including payments like gift cards that are made in exchange for referring or recommending patients to a particular plan. 
Misleading Marketing:
Agents may pressure individuals into signing up for a plan, offer gifts as an incentive, or suggest that Medicare endorses or prefers their plan, which can be misleading and may not be in the enrollee's best interest. 
Potential Scams:
Scammers may offer incentives like gift cards or cash refunds in exchange for personal information, which they can then use to steal identity or submit fraudulent claims. 
Legitimate Incentives:
Some Medicare Advantage plans may offer legitimate incentives like gift cards, prepaid debit cards, or fitness programs to attract and retain members. 
Verification is Key:
If you are offered an incentive to enroll in a Medicare Advantage plan, it's important to verify the legitimacy of the plan and the offer. Ask for identification, business cards, and check for customer reviews and complaints. 
Traditional Medicare Doesn't Offer Gift Cards:
It's important to remember that traditional, government-run Medicare does not offer gift cards or incentives for enrollment.

Vachik Chakhbazian · Answer

Yes, it can be suspicious While legitimate Medicare Advantage plans may offer some extra benefits, such as flex cards for certain expenses, it's crucial to be aware of potential scams and misleading marketing tactics.

Answered by Vachik Chakhbazian on April 17, 2025

Agent Licensed in CA, AL, AR & 22 other states

Answered by Vachik Chakhbazian Medicare Insurance Agent

Andrew Kramer · Answer

You are mistaken. Advantage plans do not offer incentives to enroll, that is forbidden by CMS. However, agents can offer incentives, but those are also strictly controlled by CMS. Gift cards that can be readily converted to cash are forbidden. Any incentive over $15 is also forbidden. So nothing is suspicious.

Answered by Andrew Kramer on August 6, 2025

Agent Licensed in FL

Answered by Andrew Kramer Medicare Insurance Agent

Suzanne Lamperti · Answer

That's because they're trying to get seniors on managed plans. That's more cost effective for Medicare.

Deborah Webster · Answer

I have not heard of any Medicare Advantage giving gift cards to enroll. This practice would not be permissible by Medicare. They have Advantage plans available that may give you a card to purchase over-the-counter medications after enrollment, or gift card rewards you may earn for doing healthy activities during the year. This is not the same as an incentive to buy.

Answered by Deborah Webster on July 9, 2025

Broker Licensed in Ia & SC

Answered by Deborah Webster Medicare Insurance Agent

Charles Borg · Answer

Medicare Advantage plans are issued by private insurance companies. They can use almost any incentives they want. If their plans were so good they wouldn’t need incentives.

Jami Mead · Answer

Medicare Advantage plans are not offering gift cards or incentives to enroll. The incentives are part of their plan that they have agreed to with CMS prior to the year beginning. Because Medicare Advantage plans have higher out-of-pocket expenses they subsidize that with the benefits card to help with the extra cost associated with their co-pays and deductibles. Even though the benefits card does not cover copays and deductibles, it helps with food and utilities so that the money they would have used for food and utilities can go towards their medical expenses.

Answered by Jami Mead on July 7, 2025

Broker Licensed in OH, FL, GA & 11 other states

Answered by Jami Mead Medicare Insurance Agent

Kelly Linster · Answer

All Medicare Advantage plans have to submit to CMS all extra benefits and incentives they plan to offer to all potential enrollees. They will not discriminate who gets these benefits.

Brianna Douros · Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/medicare-advantage-gift-card-incentives-suspicious#brianna-douros

Steven Rodriguez Giudicelli · Answer

Medicare Advantage plans can offer incentives like gift cards, as permitted by CMS, to encourage enrollment and healthy behaviors. However, it is important to look beyond these immediate benefits and carefully evaluate the plan's coverage, network, and overall suitability for your healthcare needs before enrolling.

Answered by Steven Rodriguez Giudicelli on June 3, 2025

Broker Licensed in FL & TX

Answered by Steven Rodriguez Giudicelli Medicare Insurance Agent

Susan Winters · Answer

To be clear gift cards and incentives are used for educational seminars and not incentives to enroll. It is part of the Marketing strategy many carriers use, it is not considered illegal. There is however a limit on how much can be given they are considered nominal gifts under $15 to thank you for taking the time to learn more about your Medicare options.

Answered by Susan Winters on July 16, 2025

Agent Licensed in FL, AL, AR & 16 other states

Answered by Susan Winters Medicare Insurance Agent

Austyn Harris · Answer

Medicare advantage plans aren’t allowed to be offering gift card or incentive to enroll.  These rules come from cms. If you are getting these kind of offers you should be suspicious.

John Anderson · Answer

I am not sure what you are referring to using the word suspicious. Yes, some MA plans do give Food Cards and "Getting healthy" gift cards. Typically to get the food card you must qualify as someone in need. Getting health rewards help keep health care cost down. MA plans are not for everyone, but many enjoy the extra benefits. If you need help with medicare options, just let me know.

Answered by John Anderson on August 11, 2025

Broker Licensed in NC & SC

Answered by John Anderson Medicare Insurance Agent

Isn't it suspicious that Medicare Advantage plans offer gift cards and incentives to enroll?

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Isn't it suspicious that Medicare Advantage plans offer gift cards and incentives to enroll?

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