Medicaid & Medicare OTC Benefits

Healthcare benefits can be confusing, especially when you don’t have time to dig through plan documents. Understanding your Over-the-Counter (OTC) Card benefit can help you save money and support your health—no matter your schedule or lifestyle.

OTC cards are designed to make it easier for members to access everyday health-related items without out-of-pocket costs. Knowing how your card works ensures you get the full value of this benefit.

What Is an OTC Card?

An OTC Card is a benefit offered by many Medicaid and Medicare Advantage plans. It provides members with a preloaded allowance to purchase eligible health-related items, helping reduce costs and promote wellness.

What Can You Buy With an OTC Card?

Covered items vary depending on your plan, but commonly include:

• Pain relievers, such as acetaminophen and ibuprofen

• Cold, flu, and allergy medications

• First aid supplies, including bandages and antiseptics

• Vitamins and dietary supplements

• Dental and vision care products

• Personal care and hygiene items

  
  

Always check your plan’s approved OTC catalog before making a purchase to ensure the item is covered.

How the OTC Benefit Works

Most plans manage OTC benefits in a similar way:

• A set allowance is loaded monthly or quarterly

• Funds can be used online, in-store, or through mail-order catalogs

• Unused balances may expire at the end of the benefit period

• Some plans issue a physical OTC card, while others provide a digital card linked to an app

  
  

Understanding timing and access helps prevent lost benefits.

Common Mistakes to Avoid

Many members lose part of their OTC benefit simply due to a lack of awareness. Common mistakes include:

• Waiting until the end of the month to use your balance

• Purchasing items not approved by the plan

• Assuming unused funds automatically roll over

• Failing to review annual benefit updates

  
  

Avoiding these mistakes helps you maximize your benefit.

How to Maximize Your OTC Benefits

To get the most from your OTC card, consider these tips:

• Review your balance regularly

• Plan purchases in advance

• Stock up on eligible essentials

• Keep track of expiration dates

• Contact your plan if you have questions about coverage

  
  

Being proactive can help you make the most of this valuable benefit while supporting daily health needs.

Final Thoughts

Your OTC card is more than a convenience—it’s a healthcare benefit that helps you save money and maintain wellness. Taking a few minutes to understand how it works can lead to real savings and better health outcomes.

References

1. Centers for Medicare & Medicaid Services (CMS) – Over-the-Counter (OTC) Benefit for Medicare Advantage Planshttps://www.cms.gov/medicare

2. Medicare.gov – Medicare Advantage Plan Benefitshttps://www.medicare.gov/plan-compare

3. National Council on Aging (NCOA) – Using OTC Benefits in Medicare Advantagehttps://www.ncoa.org