Many Medicare Advantage (Part C) plans offer an over-the-counter (OTC) benefit to help members save on everyday health-related items. If your plan includes this benefit, here’s what you need to know to make the most of it.
What is the OTC benefit?
The OTC benefit provides a set dollar amount – monthly or quarterly – that you can use to purchase approved health and wellness products. These funds are typically loaded onto an OTC card or available through an online ordering system.
Step 1: Confirm your eligibility
- Review your Evidence of Coverage (EOC). Your plan provider provides this.
- Log in to your plan’s member account.
- Call the customer service number on your plan ID card.
Step 2: Know what you can buy
Eligible items often include:
- Cold, cough, and flu remedies
- Pain relievers
- Vitamins and supplements
- First-aid supplies
- Dental care products (toothpaste, floss)
- Digestive health items
- Skin care and sun protection
- Orthopedic supports
Each plan has its own approved product list, so check before you shop.
Step 3: How to use your benefit
- In-store: Swipe your OTC card at participating retailers like Costco, Meijer, Walmart, Walgreens and other participating locations.
- Online or by phone: Order from your plan’s catalog or website.
- Mobile app: Some plans offer apps for balance tracking and digital payment.
Step 4: Tips to maximize your benefit
- Use it before it expires: Most plans do not allow unused funds to roll over.
- Plan ahead: Stock up on seasonal items early.
- Check eligibility: Only approved products qualify for purchase.
Why understanding OTC matters
Your OTC benefit can help reduce out-of-pocket costs for everyday health needs. By understanding how it works, you can take full advantage of this valuable resource.