What Is the Medicare OTC Benefit?
Understanding the OTC Benefit
The Over-the-Counter (OTC) benefit is an extra benefit offered by many Medicare Advantage (Part C) plans. It gives you a pre-loaded allowance — typically $25 to $200+ per quarter — to purchase health and wellness products at no additional cost.
Who qualifies?
Anyone enrolled in a Medicare Advantage plan that includes an OTC benefit. This is not available through Original Medicare (Part A and Part B alone). Check your plan's Summary of Benefits to confirm.
How does the allowance work?
Your plan loads a set dollar amount onto your OTC benefit card each quarter (every 3 months). You use this card like a debit card at approved retailers to purchase eligible items.
Does unused balance roll over?
No — in most plans, unused quarterly allowance does NOT roll over to the next quarter. If you don't spend it by the end of the quarter, you lose it.
What Products Are Covered?
- Pain relievers (Tylenol, Advil, Aleve)
- Vitamins and supplements
- First aid supplies
- Allergy medications
- Blood pressure monitors
- Dental care products
- Cold and flu remedies
- Digestive health products