What are Medicare Advantage Flex, Grocery & OTC Benefits?

Quick Reference Glossary

Flex Card
A prepaid debit-style card from some Medicare Advantage plans, usable only for approved medical, dental, vision, or healthy food expenses.

Grocery Allowance
Monthly or quarterly stipends (often $25–$150) for fresh and healthy foods, usually offered in Dual-Eligible Special Needs Plans (D-SNPs).

OTC Benefit
Quarterly allowances to purchase non-prescription health items like vitamins, first aid, and cold medicine through catalogs or partner retailers.

Overview

You’ve probably seen ads promoting free groceries or “flex cards” with Medicare Advantage plans. These benefits sound appealing, but what do they really mean — and who actually qualifies?

Under CMS policy, Medicare Advantage plans offering flex cards or grocery benefit programs must comply with guidance on supplemental benefits for chronically ill enrollees.

Medicare Advantage (Part C) plans can include extra perks not available with Original Medicare, such as help with groceries, prepaid cards for approved expenses, and allowances for over-the-counter products. This guide breaks down how these benefits work, who’s eligible, and how to use them effectively.

If you’re still weighing your coverage choices, you may also want to review the best Medicare Advantage companies and how their benefits compare.

What Are Medicare Advantage Supplemental Benefits?

Supplemental benefits are additional services or allowances that go beyond Original Medicare’s standard coverage. Insurance companies offering Medicare Advantage plans can design these extras to support healthier lifestyles, reduce out-of-pocket costs, and improve access to care.

Among the most popular are:

• Flex cards

• Grocery allowances

• OTC benefits

For a broader view of how these offerings fit into overall coverage choices, see our guide to Medicare plans.

Medicare Advantage Flex Cards

A Medicare Advantage flex card is a prepaid debit card loaded with funds you can use for approved expenses. Depending on the plan, these may include:

• Dental, vision, or hearing costs

• Copays for medical services

• Healthy food purchases at designated retailers

• Transportation related to medical appointments

⚠️ Important: Flex cards are not available with Original Medicare. They are offered by certain Medicare Advantage plans and usually come with restrictions.

If you’re comparing whether to stay with an MA plan or switch back, it helps to understand the differences in Medicare Advantage vs. Original Medicare.

Medicare Advantage Grocery Allowances

Some Medicare Advantage plans provide a grocery allowance to help pay for healthy food. These allowances often range from $25 to $150 per month, though amounts vary.

Who qualifies?

• Most commonly available in Dual-Eligible Special Needs Plans (D-SNPs) for individuals enrolled in both Medicare and Medicaid.

• Funds can only be used at approved stores for eligible food items — not for alcohol, tobacco, or household goods.

Example: A D-SNP plan may provide a monthly grocery card usable at supermarkets like Walmart or regional chains.

For updates on how allowances and other supplemental benefits may evolve, check out Medicare changes every beneficiary should know.

Medicare Advantage OTC Benefits

Over-the-counter (OTC) benefits give you a set allowance to purchase non-prescription health products. You can usually order from a catalog, shop online, or visit partner retailers.

Covered products often include:

• Pain relievers

• First aid supplies

• Cold and allergy medications

• Vitamins and supplements

Allowances are often provided quarterly (e.g., $25–$100 every three months).

Who Qualifies for Flex, Grocery & OTC Benefits?

Eligibility depends on the plan:

1. Dual-Eligible Special Needs Plans (D-SNPs): Most likely to include grocery allowances and expanded flex benefits.

2. Chronic Condition Special Needs Plans (C-SNPs): May include these benefits if they help manage certain conditions.

3. General Medicare Advantage Plans: OTC allowances are common, but grocery and flex benefits are less frequent.

How to check if you qualify:

1. Look up plans available in your ZIP code.

2. Review each plan’s Summary of Benefits.

3. Confirm eligibility rules with the insurer or a licensed agent.

Not sure how to evaluate your choices? A Medicare insurance agent can walk you through available plans and help you compare benefits.

Comparison Table: Key Medicare Advantage Benefits

Common Misconceptions

• “Everyone gets a flex card.” False — only certain Medicare Advantage plans include them.

• “You can buy anything with grocery benefits.” False — purchases are limited to approved food items.

• “Flex cards are provided by Medicare itself.” False — they’re offered by private insurers, not directly by Medicare.

Tips to Maximize These Benefits

• Use allowances promptly: Unused balances usually don’t roll over.

• Check your catalog: Order OTC items early each quarter to avoid missing out.

• Track receipts: Some plans may require proof of eligible purchases.

• Compare plan options: If you’re dual-eligible, prioritize plans with grocery and flex benefits.

FAQ: Flex, Grocery & OTC Benefits

Q: What is a Medicare flex card?
A prepaid card from certain Medicare Advantage plans used for health-related expenses.

Q: Who qualifies for a flex card?
Beneficiaries enrolled in select Medicare Advantage plans, often D-SNPs.

Q: How do I qualify for the grocery allowance?
By joining a plan (often a D-SNP) that offers monthly or quarterly grocery benefits.

Q: Can I use my OTC benefit at Walmart or Amazon?
Yes, but only if your plan partners with those retailers.

Q: Do these benefits roll over if unused?
Usually not — allowances typically reset each month or quarter.

Conclusion

Flex cards, grocery allowances, and OTC benefits can make Medicare Advantage plans more valuable — but availability depends on the plan you choose. Understanding eligibility and restrictions helps you avoid surprises and get the most from your benefits.

Explore your options at Healthcare.com or call a licensed agent at 877-388-1028 TTY 711 for personalized help.