According to the Health Policy Institute, an average US senior spends $456 to $530 on prescription drugs. This amount shoots up to $700+ if the person has a chronic illness like diabetes or arthritis.

Fortunately, Medicare has created a lot of financial ease for US older adults. The program covers important drugs under its Part D plan. However, back in 2011, it also introduced a special OTC card. 

This Medicare OTC card drastically reduces out-of-pocket expenses and streamlines the purchasing process.   

The latest 2024 changes have made this card even more attractive. Review everything you should know about Medicare OTC cards below.

What is a Medicare OTC card? 

The Medicare OTC (Over-the-Counter) card is a benefit provided by some Medicare Advantage plans. It allows beneficiaries to purchase certain non-prescription, over-the-counter products without using cash. 

Beneficiaries with eligible Medicare Advantage plans receive a specified amount of funds loaded onto an OTC card each quarter or month. They can use this card at approved pharmacies or through specific mail-order catalogs associated with their plan to purchase covered OTC items.

Medicare OTC benefits 2024

The availability and specific coverage of the OTC card can vary among different Medicare Advantage plans, and beneficiaries receive detailed information about eligible products and where to use the card in their plan materials.

However, some common benefits that we have noticed in 2024 plans include:

Home delivery 

Most seniors are unable to drive and visit stores frequently. This meant that the Medicare Advantage OTC benefit was not something they could benefit from.

So, in 2024, many Medicare Advantage plans are introducing home delivery services. This will allow you to place orders for OTC products online and get them delivered to your doorstep. However, depending on the plan, there might be a fee. 

Increased card amount 

Usually, the OTC card is loaded with $60. This is enough to purchase essential over-the-counter products. However, due to the recent inflation, most Medicare Advantage plans have revised the OTC card limits. 

Flexible spending options 

The OTC card is usable at popular pharmacies and retail stores like Walmart, CVS, and Walgreens. 

For 2024, some Medicare Advantage plans have extended this coverage to Dollar General, Rite Aid, Stop & Shop, and Family Dollar. This makes it easier to shop using your OTC card.

List of what you can get with an OTC card

Covered Item	Description
Medications	Non-prescription drugs like pain relievers, antacids, allergy medications, cough and cold remedies, and vitamins.
First Aid Supplies	Bandages, gauze, adhesive tape, antiseptics, rubbing alcohol, and first aid kits.
Healthcare Supplies	Over-the-counter medical supplies like thermometers, blood pressure monitors, heating pads, and diabetic supplies (if covered by the plan).
Personal Care Products	Dental and oral care products, such as toothpaste, mouthwash, and dental floss. Also, personal hygiene items like soap, shampoo, deodorant, and body lotion (if covered by the plan).

Some Medicare Advantage plans also offer an OTC Plus card. This lets you purchase items that promote a healthy lifestyle, including supplements, fresh produce, fitness trackers, and small home exercise equipment. 

Who qualifies for a Medicare OTC card?

There are no special qualification criteria for a Medicare OTC card. If you are enrolled in a Medicare Advantage plan that offers this benefit, you will get the OTC card as part of the plan’s benefits. So, the most important step is to find a suitable Medicare Advantage plan. 

How to get an OTC card? 

To get a Medicare Over-the-Counter (OTC) card, you generally need to follow these steps:

1. Enroll in a Medicare Advantage Plan: The OTC benefit is usually offered as part of certain Medicare Advantage plans. During the Annual Enrollment Period (October 15 to December 7), you can select a plan that includes the OTC benefit.
2. Review plan materials: Once enrolled in a qualifying Medicare Advantage plan, review the plan materials provided by the insurance provider. This could include a welcome packet, plan documents, or an OTC catalog.
3. Receive information about the OTC card: The plan materials will include information about the OTC benefit, such as the amount loaded onto the card and the approved items you can purchase.
4. No separate application process: In most cases, there is no separate application process for the OTC card. Qualification is tied to your enrollment in a specific Medicare Advantage plan that offers this benefit.
5. Use the OTC card at approved locations: Once you have the OTC card information, you can use it at approved pharmacies or online platforms to purchase eligible over-the-counter items.