Medicare Grocery and Food Allowance 2026: How It Works with OTC Benefits

Grocery Benefits Are Expanding

In 2026, more Medicare Advantage plans than ever include grocery or healthy food allowances alongside traditional OTC benefits. Some plans combine both into a single flex card, while others provide separate allowances for each.

How Grocery Benefits Work

• Monthly or quarterly allowance: Plans provide $25-$175 per month for approved food items. The amount varies significantly by plan and location
• Approved items: Generally limited to healthy foods — fruits, vegetables, whole grains, lean proteins, dairy, and low-sodium options
• What's NOT covered: Junk food, alcohol, tobacco, candy, soda, and most processed snacks are excluded
• Flex cards: Many plans use a single benefits card that covers both OTC and grocery items. Check your card's balance for each category separately

Plans with Grocery Benefits

• Humana: Many Humana Gold Plus plans include a Healthy Options Allowance combining OTC + grocery
• UnitedHealthcare: Select AARP plans include a Healthy Food Benefit separate from OTC
• Anthem: Some D-SNP plans include grocery allowances up to $150/month
• WellCare: Certain WellCare plans offer a combined OTC + grocery card

Maximizing Both Benefits

• Track both balances: If you have separate OTC and grocery allowances, check each balance monthly. They expire independently
• Plan your shopping: Use grocery benefit for fresh produce and proteins. Use OTC benefit for health products like vitamins and supplements
• Don't overlap: Some items (like certain protein shakes) might qualify under both OTC and grocery. Use whichever balance has more remaining