How to use the OTC card: The Medicare Advantage card that does more than people think
A Medicare Advantage plan may offer people money to spend on common drugstore items. Here are step-by-step instructions for spending it at CVS®.
Here’s one great thing about being a senior. About four out of five Medicare Advantage plans will pay for some over-the-counter (OTC) products. Think of toothpaste, pain relief products, supplements and other items that keep people healthy and thriving.
But, surprisingly, about 70 percent of that money goes unused every year. Per a 2021 survey conducted by Gallup, over 1 in 3 adults ages 50 and older have had to give up other necessities such as food to pay for health care. Part of the reason it’s wasted may be that people don’t know how to use it.
Nobody should let that hold them back. This friendly, step-by-step plan shows people how to spend their OTC benefit at CVS.
In this article:
- What are OTC benefits?
- What is an OTC card?
- How does someone check the balance on their OTC card?
- How does someone check their “use-it-or-lose-it” period?
- How can someone see which products are eligible for their OTC card?
- How does someone use their OTC card in stores?
- What about the CVS Flex Benefits plan?
- The OTC takeaway
What are OTC benefits?
Over-the-counter benefits — or OTC benefits — are offered to most Medicaid and Medicare Advantage members. They help pay for products that can help support people’s health.
While the list of products covered will vary from plan to plan, they include hundreds of common items. Plans may let their customers shop for those items at participating retailers, which may include CVS.*
The amount people can spend also varies by plan. The average annual OTC benefit works out to about $400 annually, and is usually allotted annually, quarterly or monthly depending on plan. Any unused allowance will not usually carry over to the next benefit period, but that timeframe may vary from plan to plan.
OTC benefits not only help people pay for common OTC items — they may help support people’s health.
What is an OTC card?
When someone gets an OTC benefit, they often receive a special card. That’s to help them use the benefit allowance more easily. In most cases, this card is different from their main Medicare Advantage card — the one with the account number used at a provider’s office or a hospital.
Both cards are generally sent by mail. They might come with plan information and a booklet that contains OTC benefit instructions. Sometimes it arrives with a catalog of approved products. The OTC card may either come preloaded with a balance or require activation before use.
For some Medicaid and Medicare Advantage plans, the OTC card can be swiped as a form of payment or used on phone and online orders. Just use it like any prepaid card, with no PIN (personal identification number) or signature required. For other plans, people may need to provide their health plan membership ID to verify their OTC eligibility, or their name and date of birth.
How does someone check the balance on their OTC card?
Once the card is activated, people should learn how to check their account details. This is especially needed when trying check card balances and checking amount already been used. Most cards have a toll-free number listed on the back of the card, which anyone can call. The information might also be available on the plan provider’s website.
People should make sure they check their balance often. This is not just to ensure they’re going over their spending limit, but also to make sure they get the most out of their OTC benefits.
How does someone check their “use-it-or-lose-it” period?
It’s important to know when an OTC card reloads. Money might be added on a monthly, quarterly or annual basis, depending on the plan. But people should remember that if benefits don’t roll over to the following period, they’ll need to be used — otherwise they’ll be lost.
For example, some plans have a quarterly structure. In January, people can expect to get $100 to spend. This will need to be spent by March 31. Then on April 1, people get another $100 to spend. And so on.
The details should be in the onboarding materials, available by phone and on the plan’s website.
Once people figure out this window, it’s easy to set reminders. For instance, people can set an alert on their phone a week before the window ends. When it goes off, they’ve still got a few days to spend any dollars that remain. A sticky note on the refrigerator may work just as well.
How can someone see which products are eligible for their OTC card?
Each OTC benefit plan is a little different. But most of them cover thousands of OTC products that help with their health and wellness. So people can get a sense of exactly what’s covered, it’s a good idea that they check with their plan provider.
At CVS stores, the blue tags on the shelves can help. They mark some of the items commonly available in OTC benefit plans.
Some commonly eligible categories include:
- Adult care incontinence items
- Allergy, cold and digestive relief support
- Dental and oral care products
- Eye and ear care
- First aid products
- Foot care
- Health care items like canes and walkers
- Vitamin and mineral supplements
How does someone use their OTC card in stores?
One option is to shop in person at CVS. How people can start is by creating a checklist based on the items approved by their Medicare Advantage plan.
If someone has an OTC benefit card, they can use it at checkout.* All people need to do is head to the register with their chosen OTC items and the cashier will ring up the approved purchases. If the amount on the card isn’t enough to cover them, customers will need to pay the balance out of pocket. It’s also a good idea that people keep their receipt for their records.
What about the CVS Flex Benefits plan?
A Medicaid or Medicare Advantage plan may tell someone that they belong to CVS Flex Benefits. CVS Flex Benefits members may redeem their benefit with CVS, either in the store,* online or by phone.
Commonly eligible products are easy to spot. Blue tags on the shelves mark these items. In some stores, CVS Flex Benefits-eligible items are shelved together. Often physical catalogs are available, and people can also scan items with the CVS Flex Benefits app to see if they qualify.
Once someone has picked up the products they want, they can head to the register and give their name and date of birth. The cashier can check the balance at the register.
For online shopping, people can create an account using their member identification number. The total at checkout will be taken from the benefits balance. If someone prefers to order by phone, CVS Flex Benefits shoppers can call 1-888-628-2770 (TTY: 711 ). CVS Flex Benefits orders can be placed with a live agent most weekdays from 9 AM to 8 PM. An automated system is available 24/7.
The OTC takeaway
Every plan is a little different, so it makes sense people learn about their individual benefits. In most, for example, people can’t make a return or exchange unless they receive a damaged item. And there may be quantity limits on single items, ranging from three to nine during a period.
Once they’ve got the “how to” under their belt, they’ll be ready to use their OTC benefits. The OTC card can help the budget and help support people’s health — so the sooner the customer learns it, the better.
This content is for informational purposes only and is not intended to replace professional medical advice, diagnosis or treatment. Consult your health care provider if you have any questions about medications, vitamins or supplements you may be considering or changes to your wellness or health care routines.
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*FOR HOW TO USE THE OTC CARD: Terms and conditions apply. Check with your health plan provider for more details.
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*FOR PARTICIPATING STORES: In-store CVS Flex Benefits redemption is not available at Target, Schnucks or select other CVS Pharmacy® locations.
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*FOR CVS FLEX BENEFITS MEMBERS: If you are a CVS Flex Benefits member, redeem your benefit in store by providing your information to a store colleague at the register.
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*FOR OVER-THE-COUNTER BENEFITS AT NO ADDITIONAL COST: Over-the-counter (OTC) allowance benefits are included in select Medicare Advantage and Medicaid plans. The allowance may only be applied to select OTC products. Allowance amount may vary by plan. Customer may be responsible for the cost of any items not covered by their plan or the cost that exceeds their allowance amount. Check with your health plan provider for more details.
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FOR ABOUT FOUR OUT OF FIVE MEDICARE ADVANTAGE PLANS WILL PAY FOR SOME OVER-THE-COUNTER (OTC) PRODUCTS SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR TOOTHPASTE, PAINKILLERS, SUPPLEMENTS AND OTHER ITEMS SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR ABOUT 70 PERCENT OF THAT MONEY GOES UNUSED EVERY YEAR SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR ONE IN THREE OLDER ADULTS STRUGGLE WITH HEALTH CARE EXPENSES SOURCE: Willcoxon N. Older adults sacrificing basic needs due to healthcare costs. Gallup. Published June 15, 2022.
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FOR OTC BENEFITS ARE OFFERED TO MOST MEDICAID AND MEDICARE ADVANTAGE MEMBERS SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR LIST OF PRODUCTS COVERED WILL VARY FROM PLAN TO PLAN SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR AVERAGE ANNUAL OTC BENEFIT WORKS OUT TO ABOUT $400 ANNUALLY SOURCE: Consumer Healthcare Products Association. Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.
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FOR BENEFIT DOLLARS DO NOT ROLL OVER SOURCE: The Denver Gazette. Use it or lose it: Make your Medicare Advantage OTC dollars work. Updated October 9, 2025.
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FOR BETTER HEALTH PROGRESS FOR CERTAIN CONDITIONS SOURCE: Consumer Healthcare Products Association (CHPA). Using the Medicare advantage over-the-counter (OTC) medicines program as a consumer engagement tool. Published October 2021.