How to Use Your Medicare Advantage OTC Benefits

Are you taking full advantage of your Medicare Advantage plan? One of the many benefits that some plans offer is an OTC (over-the-counter) allowance. It's all too common to see people select their Medicare without using these additional perks. Who doesn't appreciate extra benefits and allowances, especially when they're already included?

By the end of this post, you'll understand exactly what an OTC benefit is, how to use it effectively, and how to make sure not a single dollar is wasted.

What Are Medicare Advantage OTC Benefits?

OTC benefits are an allowance that can be used at participating stores for certain over-the-counter items, like vitamins and supplements. The allowance can come as a preloaded card, or you may be able to use it to purchase items online and have them shipped to your home. This benefit is offered through private insurance companies on many Medicare Advantage plans at no additional cost.

What Can You Buy With Your OTC Allowance?

Common eligible items include:

Pain relievers and cold medicine. Common over-the-counter pharmacy items.

Bandages and first-aid supplies. Everyday household basics.

Vitamins and supplements. A frequent use case for the allowance.

Dental care items. Toothbrushes, toothpaste, mouthwash, and more.

Vision and hearing-related supplies. Reading glasses, contact lens solution, hearing aid batteries.

Health monitoring tools. Blood pressure cuffs, diabetes supplies, and similar.

Health-related clothing. Items like compression socks.

Products available depend on your insurance carrier, brand selection, and the stores included with your plan.

How to Use Your OTC Benefits

Step 1 — Check Your Allowance

Log into your member portal or use the carrier's mobile app to view your current balance. You can also call the phone number on the back of your OTC card to confirm your allowance and find participating retailers near you.

Make sure you know whether your allowance is monthly or quarterly, and whether unused balance rolls over or expires at the end of the period.

Step 2 — Shop Approved Retailers

Most plans let you shop online portals, participating stores (CVS, Walmart, Walgreens, and similar), or through the catalog your carrier mails you — by mail, online, or by phone.

Step 3 — Place Your Order

Use your OTC card at approved store locations, or order online or by phone. Some carriers also let you order from a printed catalog.

Common Mistakes to Avoid

Not knowing you have an OTC allowance. This is the most common mistake. Review your plan's summary of benefits at least once a year so you can see all the included perks and make sure you're using them.

Letting it expire. Allowances reset on a monthly or quarterly schedule. Some plans roll unused balance forward, others don't. Knowing this in advance prevents leaving benefits on the table.

Not reviewing your plan every year. Plans change every year. You may be eligible for a higher allowance than you had previously — or your current plan may have reduced benefits and a different plan would suit you better.

How Do I Qualify for an OTC Allowance?

OTC benefits are offered exclusively through Medicare Advantage (Part C) plans. You must have Medicare Parts A and B to qualify for an Advantage plan, and not all plans include an OTC allowance — availability depends on the plans offered in your zip code.

While the allowance is a useful benefit, choose a plan that fits your overall healthcare needs first. Extras like OTC are a bonus, not the main reason to pick a plan. Ask your advisor or broker if this benefit is available in your area and to help you find plans that include it.

Why Did My OTC Benefit Decrease?

If your OTC allowance decreased, it's most likely because your plan was renewed for the new year and benefits are subject to change. It can also happen if you switched coverage recently. Every Medicare Advantage plan is different, and benefits vary by carrier and plan type. Even switching to another plan from the same carrier can mean some benefits improved while others — like OTC — got reduced.

That's why reviewing your plan every year matters: to stay current on new benefits and make sure they still fit your healthcare needs. A licensed broker can walk you through a full needs analysis to find the best benefits and savings tailored to your situation.

Next Steps

Talk to a local Medicare broker to see if you qualify for an OTC allowance.

If you already have a Medicare Advantage plan, review your current benefits to ensure you're not missing anything important.

Download your plan's app or check the member portal today to see your current OTC balance and eligible items.

Save the customer service number on your OTC card for quick questions about retailers or orders.

Mark your calendar for the next Medicare Annual Enrollment Period (October 15 – December 7) to shop plans with the best OTC perks for the coming year.