OTC Allowance
Also known as: Over-the-Counter Benefit, Healthy Benefits+
A periodic credit offered by some Medicare Advantage plans to spend on approved over-the-counter health products.
Many Medicare Advantage plans offer an Over-the-Counter (OTC) allowance — a quarterly or monthly credit (typically $25–$500) that can be spent on approved health products without a prescription. This is a supplemental benefit not available through Original Medicare.
For people with diabetes, OTC allowances can cover items that Medicare Part B does not: diabetic socks, skin care products (barrier creams, antifungal treatments), glucose tabs, non-prescription lancet devices, and sometimes non-covered test strips.
OTC allowances are typically accessed through an online catalog, a dedicated prepaid card, or participating retail stores (CVS, Walmart, Walgreens). The eligible product list varies by plan and is updated annually. Not all Medicare Advantage plans offer an OTC benefit — this is something to evaluate during fall Open Enrollment.
Frequently asked
What is OTC Allowance?
A periodic credit offered by some Medicare Advantage plans to spend on approved over-the-counter health products. Many Medicare Advantage plans offer an Over-the-Counter (OTC) allowance — a quarterly or monthly credit (typically $25–$500) that can be spent on approved health products without a prescription. This is a supplemental benefit not available through Original Medicare.
How does OTC Allowance relate to Medicare coverage?
Medicare Part B covers most durable medical equipment related to OTC Allowance. Contact us to verify your specific coverage for related diabetic supplies.
Where can I get diabetic supplies related to OTC Allowance in Phoenix?
We deliver Medicare-covered diabetic supplies throughout the Phoenix metro area. Call us or complete the form above to verify your coverage.