Medicare Advantage plans often include a variety of benefits that traditional Medicare does not cover, one of the most popular being the over-the-counter (OTC) allowance. Many plans carry this benefit, which can reduce what you have to pay for health-related items.
From vitamins and supplements to cold medicine and allergy pills, OTC allowances can make a big difference in costs. Keep reading to learn more about these benefits and how they are usually issued.
An OTC allowance is a benefit provided by many Medicare Advantage plans that allows members to purchase non-prescription health products using plan-provided funds. These allowances are typically distributed on a yearly, monthly, or quarterly basis.
The goal of this benefit is to help Medicare Advantage members manage everyday health needs without incurring additional out-of-pocket costs. The allowance is essentially a spending account – usually provided through a prepaid card – that can be used on pre-approved OTC items, ensuring that enrollees have access to essential health products without dipping into their own funds.
Here are some common items that may be approved for purchase through an OTC prepaid card:
- Pain medicine: Over-the-counter pain medications like ibuprofen, aspirin, or acetaminophen
- Cold and flu remedies: Cough drops, decongestants, and other cold and flu relief medications.
- Vitamins and supplements: Multivitamins, vitamin D, calcium, and other dietary supplements.
- First-aid products: Bandages, antiseptic wipes, and ointments for minor injuries.
- Dental items: Toothpaste, toothbrushes, floss, and denture care products.
- Vision and Ear Care: Eye drops, reading glasses, and hearing aid batteries.
- Incontinence Products: Adult diapers, pads, and other incontinence supplies.
- Mobility Aids: Simple items like canes or walkers may be included in certain plans.
- Home Health Monitoring Devices: Blood pressure cuffs, thermometers, and other health-monitoring tools.
The amount of the OTC allowance varies depending on the specific Medicare Advantage plan you choose. However, most plans offer between $50 and $250 per quarter in OTC funds. On an annual basis, this means you could receive anywhere from $200 to $1,000, depending on the plan.
