An OTC card is a prepaid benefits card that comes with certain Medicare Advantage plans, loaded with a set dollar amount you can use to buy everyday health products like pain relievers, vitamins, first aid supplies, and dental care items. It works like a debit card at participating retailers, but it can only be used on approved over-the-counter health products. You don’t pay anything out of pocket for these items as long as you stay within your benefit amount.
How OTC Cards Work
When you enroll in a Medicare Advantage plan that includes an OTC benefit, you receive a card in the mail preloaded with funds. Depending on your plan, the card reloads on a set schedule, either monthly or quarterly. The amount varies by plan and can range from around $25 to several hundred dollars per period.
The key thing to understand is that unused funds typically do not roll over. If your plan operates on a quarterly cycle, any money left on the card at the end of March, June, September, or December disappears. A fresh amount loads automatically on the first day of the next quarter. Monthly plans work the same way but reset each month. This means it’s worth using your full balance before each cycle ends.
What You Can Buy
OTC cards cover a broad range of health-related products. The eligible categories generally include:
- Medicines and treatments: Pain relievers, allergy pills, cold and flu medicine, cough suppressants, antacids, digestive aids, anti-itch creams, antifungal treatments, laxatives, sleep aids, eye drops, ear drops, hemorrhoid treatments, smoking cessation products, sunscreen, and acne medication.
- First aid supplies: Bandages, wound dressings, and medical tape.
- Dental care: Toothbrushes, toothpaste, floss, denture adhesives, and products for gum problems or mouth sores.
- Vitamins and minerals: Multivitamins, individual vitamins, and mineral supplements. These are considered “dual purpose” items, meaning your plan may require that a healthcare provider recommends them for a specific health condition before you purchase them.
Some plans with enhanced benefits for people who have chronic conditions like diabetes, heart disease, or high blood pressure may also allow spending on healthy food and even utility bills. UnitedHealthcare, for example, offers food and utility bill credits through certain Dual Eligible Special Needs Plans, though verification of a qualifying chronic condition is required.
What You Cannot Buy
OTC cards are restricted to health-related products. Items used for general cosmetic purposes are not eligible. Common items people assume are covered but typically aren’t include beauty products, general-purpose toiletries that don’t contain active medical ingredients, and dietary supplements taken purely for general wellness rather than a diagnosed condition. If a product doesn’t treat, prevent, or address a specific health symptom, it likely won’t be approved at checkout.
Where to Use Your OTC Card
Most OTC cards are accepted at major national pharmacy and grocery chains. Common participating retailers include CVS Pharmacy, Walgreens, Walmart, Rite Aid, Kroger, Safeway, Publix, Albertsons, and Target. Some local pharmacies also accept the cards, though this depends on your specific insurance carrier.
Online shopping is also an option, but the process differs by insurer. UnitedHealthcare members typically shop through the insurer’s app, Humana members use the CenterWell platform, and Aetna members can shop through the CVS website. Your plan’s welcome materials or member portal will spell out exactly which retailers and online options apply to your card.
At checkout, you use the OTC card the same way you’d swipe a debit card. The register automatically filters your purchase, so only eligible items are deducted from your OTC balance. If you buy a mix of eligible and ineligible items, you’ll need to pay for the ineligible ones separately.
Activating Your Card and Checking Your Balance
Your card needs to be activated before you can use it. Plans typically let you activate by calling the number on the card and entering your card number and date of birth, or by logging in to your plan’s member website. Once activated, you can start shopping immediately.
Checking your remaining balance works through the same channels: a phone call to the number on the back of your card, your plan’s website, or a mobile app. Many plans use the OTC Network mobile app, which also lets you browse eligible items and find discounts from your phone.
Who Gets an OTC Card
OTC cards are not part of Original Medicare (Parts A and B). They are an extra benefit offered by private Medicare Advantage plans, also known as Medicare Part C. Not every Medicare Advantage plan includes one, so the benefit level and availability depend entirely on which plan you choose during enrollment.
Dual Eligible Special Needs Plans, which serve people who qualify for both Medicare and Medicaid, often include more generous OTC benefits along with additional perks like care coordination and a single ID card that covers both Medicare and Medicaid services. Standard Medicare Advantage plans may offer smaller OTC allowances or none at all. The benefit details are always listed in the plan’s Summary of Benefits document, which you can review before enrolling.
If you already have a Medicare Advantage plan, check your Evidence of Coverage document or call your plan’s member services line to find out whether your plan includes an OTC benefit, how much it provides, and when it resets.