CJ Karrer
Writer · Reviewed by Richard ChanUpdated Jun 12, 2026
1 min read
An over-the-counter (OTC) allowance is a common supplemental benefit offered by many Medicare Advantage plans, providing prepaid funds for health-related items.
Beneficiaries can typically use their OTC allowance to purchase items such as non-prescription medications, toothpaste, bandages, and orthopedic supports at participating retailers.
OTC allowance funds usually expire at the end of a specific period, such as a month or quarter, and do not roll over to the next period.
Managing everyday health needs shouldn't drain your monthly budget. An over-the-counter (OTC) allowance is a valuable perk included in many Medicare Advantage plans, providing a fixed monetary credit to help you cover the cost of essential non-prescription items. From pain relievers to first-aid supplies, this benefit empowers you to proactively handle minor health issues from home. Maximizing your OTC allowance can significantly ease your out-of-pocket spending while keeping your medicine cabinet fully stocked.