Unlocking Medicare Savings: How to Maximize Your OTC Allowance

For many people aged 65 and older, Medicare Advantage plans have become the go-to choice for coverage. Yet, despite offering valuable over-the-counter (OTC) allowances—often adding up to hundreds of dollars annually—billions of dollars in benefits go unused every year. Finance expert Shinobu Hindert explains how to make the most of this benefit so you can enjoy savings on everyday health and wellness products.

Understanding the OTC Allowance

Medicare Advantage plans commonly provide an OTC allowance worth an average of $400 a year. This allowance covers non-prescription items and wellness essentials like common pain relievers, cold-and-flu medicines, or first-aid supplies. While many older adults are eligible, nearly 70% never cash in on the benefit.

How to Access Your Benefits

1. Catalog or Online Ordering
   Most Medicare Advantage plans give members a catalog or website listing eligible products. You can order items online, by phone, or through a mail-order process.
2. Receipt Reimbursement
   Some plans allow you to buy eligible products and then submit receipts for reimbursement.
3. OTC Debit Cards
   Select providers issue prepaid debit cards specifically for purchasing OTC products during a separate transaction.

No matter the approach, it’s essential to check your individual plan details to confirm product eligibility and track how often you can redeem your allowance—monthly, quarterly, or annually. Remember, OTC allowances typically expire, so staying informed can help you avoid losing out on these savings.

Recommended Products

From joint pain relief to cough, cold, and flu treatments, many well-known brands under Kenvue (Tylenol, Neutrogena, Band-Aid, Sudafed, and more) fall under eligible OTC categories. By utilizing this benefit, you can keep your medicine cabinet stocked and stay prepared for minor aches or seasonal ailments.

A Use-It-Or-Lose-It Benefit

Because unused funds don’t roll over, being proactive is key. Regularly review your plan, keep track of expiration dates, and make a shopping list of OTC items you may need for everyday health support.

For more information on eligible Kenvue brands and how to make the most of your Medicare Advantage OTC allowance, visit KenvueBrands.com/USMmedadvantage.