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How should I spend my Medicaid and Medicare Advantage over-the-counter (OTC) benefit?

You may be wondering how to spend your OTC supplemental benefit. Our guide has tips for every season of the year.

Published: February 26, 2024 |7 minute read

Written by: Tim Gower

A desk calendar with bottles and boxes of prescription medication on top of it.

You want to spend retirement dollars on things you really enjoy, but very few people take advantage of a common Medicare Advantage feature that covers eligible health and wellness products on their shopping list.

If you or a loved one has a Medicaid or Medicare Advantage plan, it may come with an over-the-counter (OTC) benefit. It’s included in 8 out of 10 plans,1 but very few people spend this allowance fully. It’s time they did.

Here’s some help planning what to spend your OTC benefit on. This season-by-season guide helps you prep your shopping list and stock up for whatever health goals lie ahead.

In this article:

Remind me — what’s the OTC benefit?

An OTC benefit is a part of most Medicare Advantage plans. It gives you money to spend on eligible OTC products. This is typically a fixed allowance that comes every month or quarter. If you have the benefit, you can spend this money on a wide range of eligible items that help with health and wellness — items you might currently be paying for out of your own pocket.2  

In many plans, unspent money doesn’t carry over from one benefit period to the next. That means you have to use it or lose it. In fact, that’s what happens to most of these OTC benefit funds.3 

To get every dollar you deserve, it might be helpful to make a spending plan for every period. When the season begins, list out the needs you might have in the months ahead.

How can I be sure to use my OTC benefit?

To make that list, consult your Medicaid or Medicare Advantage plan provider about what’s covered. It typically includes a variety of nonprescription items related to health and wellness.

Start with the products covered by your plan and see which ones you’re already using, such as pain relievers and dietary supplements, advises Marilyn Rantz, PhD, professor emerita of nursing at the University of Missouri, who studies aging.4 “There’s no reason not to use the benefit,” says Rantz. “You’ll save cash to use elsewhere.”

For more help getting started, check out the year-round spending plan below. It offers products that are typically in demand every season and a bonus suggestion, in case you have any leftover funds.

And, if you need it, click the link for an explainer of how to use the OTC benefit in CVS® stores.

OTC plan for the spring

Allergy medications: Trees and plants produce pollen throughout the year and peak from March to May. For many people, this can cause a runny nose, itchy eyes and other symptoms of seasonal allergies.5

A variety of OTC products — including antihistamines, allergy eye drops and nasal sprays — can help you feel better. Be sure to speak with your health care provider before using them.

Pain relievers and bandages: Gardeners know the rewards of planting and weeding. But these activities can also leave you achy — especially if you have health conditions, such as arthritis. First, speak with your health care provider. Then consider the spring for stocking up your supply of pain relievers and topical analgesics. And maybe throw in some gauze and bandages for the scrapes or cuts you earn as badges of your hard work.

Bonus: Finding it a little tougher to get around? “The key to ‘aging in place’ is maintaining mobility,” says Rantz. A well-made walker can dramatically increase independence — and those are included in many OTC benefit programs.

OTC plan for the summer

Sunscreen: The American Academy of Dermatology (AAD) recommends that sunscreen should be worn all year. But, according to the Centers for Disease Control and Prevention (CDC),6 fewer than half of older adults use any form of protection against the sun when they venture outdoors for an hour or more on warm, sunny days. Sunscreen is especially important to protect aging skin.7

Wear a hat and protective clothing when you go out and put sunscreen on any exposed skin. The AAD recommends using products with a sun protection factor (SPF) of at least 30 and to apply it liberally and often. Learn everything you need to know about sunscreen and the OTC benefit.

Insect repellent: Bug bites may become more than a simple annoyance as you get older. As people age, they can become more likely to develop severe diseases.8 If you enjoy the great outdoors in the summer, you may want to apply some insect repellent. Happily, some repellents are included on OTC benefit lists.

Bonus: If you have extra dollars this quarter, consider buying grab bars, which are covered by many OTC plans. You can have them installed in the shower, next to the toilet or anywhere else your balance might be unsteady. “They can mean the difference between staying supported on your feet and having a serious fall,” says Rantz.

OTC plan for the fall

Travel aids: Many seniors wait until fall for vacation, allowing them to enjoy pleasant weather and smaller crowds. No matter your destination, consuming unfamiliar cuisine can sometimes cause gastrointestinal distress. So be sure to stock up on your travel needs.

If your travels include an ocean cruise and you tend to get seasick, motion sickness relief support tablets are usually covered by the OTC allowance, too. Be sure to speak with your health care provider before starting or stopping any type of OTC product or supplement.

Bonus: Every home should have a first aid kit. Not sure if yours has all the right stuff? You can stock up and update your first aid kit using any extra OTC benefits — at any time of year.

OTC plan for the winter

Cold and flu medications: Be ready for winter with these relief support products. Just don’t forget that these and other medications expire over time, which not only makes them less effective but also potentially unsafe.9 Learn more about the OTC benefit and how to prepare for the season of sniffles and coughs. Remember to speak with your health care provider before using new medications.

Hand sanitizers: These come in handy during the cold months and help kill germs that can cause colds, the flu, COVID-19 and other respiratory viruses, adds Rantz. She keeps antiseptic wipes in her car and thoroughly cleans her hands after grocery shopping and other outings. Handwashing is still preferred, but these products can help in a pinch when you can’t get to soap and water.

Bonus: If you take a multivitamin or any other dietary supplement, an OTC benefit can help get you the products you may need. Consult your health care provider about any supplements and take time now to stock up for the months ahead.

CVS® makes it easy to redeem OTC benefits

You may be eligible to get select over-the-counter (OTC) products at no additional cost.*

Learn more about OTC benefits

This content is for informational purposes only and is not medical advice. Consult your health care provider before taking any vitamins or supplements and prior to beginning or changing any health care practices.