Medicare OTC Card: How to Use It Before It Expires (2026)
By Michelle Harburg, Co-Founder, MediNav · Updated July 2026
If your parent has a Medicare Advantage plan, they may have an over-the-counter (OTC) card worth $25 to $150+ a month, and most of it goes unused. What it covers, where to spend it, and the use-it-or-lose-it rule.
Here's an easy win for anyone helping a parent with a Medicare Advantage plan: the over-the-counter (OTC) card. Many plans load one with a real monthly or quarterly allowance for everyday health items, and because most people don't realize the money expires, a lot of it is quietly forfeited every quarter. A survey by the Commonwealth Fund found only about 46% of Medicare Advantage enrollees used their OTC benefit at all.
What the OTC card is
An OTC card is a prepaid card your parent's Medicare Advantage plan loads with a set allowance, commonly anywhere from about $25 to over $150 a month, depending on the plan. Original Medicare does not include this; it's a Medicare Advantage extra. The money is meant for approved over-the-counter health and wellness products.
What it covers (and what it doesn't)
Typical covered items include pain relievers, cold and allergy medicine, vitamins and supplements, first-aid supplies, blood-pressure monitors, dental-care and eye-care products, and on some plans incontinence supplies. What it usually does not cover is regular groceries or food, that's a separate 'grocery allowance' benefit that only certain plans offer. If your parent's card is being declined at the register for food, this is usually why.
The rule that costs families money: use it or lose it
This is the part to circle. On most plans, an unused OTC balance does not roll over, whatever isn't spent by the end of the month or quarter simply disappears. Nobody sends a reminder. Setting a simple recurring note to 'spend Mom's OTC balance' near the end of each period is one of the highest-value five-minute habits a caregiver can build.
How to actually spend it
OTC cards are generally accepted at major pharmacies and retailers like CVS, Walgreens, Walmart, and Rite Aid, and many plans also let you order from a catalog online or by phone and have items shipped to your parent's door, helpful if they don't drive. To find the exact allowance, schedule, and item list, check your parent's plan 'Summary of Benefits' or call the member number on their insurance card. Stock up on the things they use anyway, it's money already paid for.
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How much is on a Medicare OTC card?
It depends entirely on the Medicare Advantage plan, but allowances commonly range from about $25 to over $150 per month, reloaded monthly or quarterly. Check your parent's plan Summary of Benefits or the member line on their insurance card for the exact amount.
What can you buy with a Medicare OTC card?
Approved over-the-counter health items: pain relievers, cold and allergy medicine, vitamins, first-aid supplies, blood-pressure monitors, dental and eye-care products, and sometimes incontinence supplies. It generally cannot be used for regular groceries, that's a separate grocery-allowance benefit.
Does an unused OTC balance roll over?
Usually no. On most plans the balance resets at the end of each month or quarter and unused money is lost. Because there's no reminder, it helps to spend it near the end of each period on items your parent uses anyway.
Where can my parent use their OTC card?
Commonly at CVS, Walgreens, Walmart, and Rite Aid, and often through the plan's mail-order catalog online or by phone. The exact list of participating stores is in the plan's benefit materials.
Updated July 2026. Sources: Medicare.gov, SSA, CMS (2026). Estimates, verify with SSA and your state.