Use it or lose it: Make your Medicare Advantage OTC Dollars Work For You

October 09, 2025 at 08:01 AM EDT

(BPT) - An estimated $5 billion in over-the-counter (OTC) allowances for Medicare Advantage members don't get used each year - that's approximately 70% of these benefits wasted. With current consumer prices rising, it's important to find ways to save on everyday necessities.

Medicare Advantage has become the most popular form of Medicare, with about 30 million members. A great benefit that not everyone knows about for Medicare Advantage is that numerous plans offer an average annual OTC allowance of $400.

What are OTC allowances?

An OTC allowance helps Medicare Advantage members pay for items like non-prescription medications that treat symptoms of back pain, arthritis, hypertension, cough, cold and flu, plus over-the-counter products that support digestive health, dental care and even skincare, among others. Because OTC allowances don't roll over, any unused funds expire at the end of each plan cycle, on a monthly, quarterly or annual basis - depending on the member's plan. This makes it crucial for Medicare Advantage members to use them while they last.

New research from Kenvue's "A New View of Care" report finds most consumers don't completely stop their health and personal care routines because of cost, but price does impact how consistently they use products. Because OTC allowances help reduce financial strain, it's easier to maintain your everyday personal care routines without interruption.

"With the cost of everyday essentials on the rise, Medicare Advantage OTC allowances are one of the simplest ways for those with Medicare Advantage plans to save money while staying healthy," said Amanda Coussoule, Kenvue Chief Customer Officer U.S. "By using their OTC allowance, they can access their favorite trusted products from brands like Tylenol, Zyrtec and BAND-AID Brand, helping them take care of their health without sacrifice."

Top OTC-eligible products

As a Medicare Advantage member, hundreds of your favorite health and personal care products are eligible for OTC funds. Want to refill your medicine cabinet, boost your skincare routine or restock health remedies? Many of Kenvue's leading brands, including NEUTROGENA^®, AVEENO^®, TYLENOL^®, IMODIUM^® and ZYRTEC^®, are OTC-eligible. Always be sure to check your specific plan for product eligibility.

Here are top brands in health and personal care categories that may* be covered by your OTC allowance:

Pain relief: For managing pain, you may be able to use your OTC allowance on products like TYLENOL^® 8-HR Arthritis Pain or the new TYLENOL^® PRECISE™ Pain Relieving Patches .
Cold, cough and flu symptoms: Now's the perfect time to be prepared with cold, cough and flu options, including products you can trust such as SUDAFED^® and TYLENOL^® Cold + Flu.
Digestive health support: Products like PEPCID^® COMPLETE can aid your digestive health and keep heartburn at bay.
Improve your skincare: OTC allowances can be used for most skincare products with active ingredients such as AVEENO^® Eczema Therapy Soothing Cream, Steroid-Free and AVEENO^® Therapy Nighttime Itch Relief Balm , or acne treatment products such as NEUTROGENA^® Oil-Free Acne Wash, Fragrance-Free. To protect your skin from the sun's harmful rays year-round, use your benefits on NEUTROGENA^® Sport Active Defense™ Lotion Sunscreen SPF 30, NEUTROGENA^® Beach Defense^® Spray Sunscreen SPF 70, or NEUTROGENA^® Invisible Daily Defense Sunscreen Lotion SPF 60+
Boost your dental care: Consider a LISTERINE^® product like LISTERINE^® Clinical Solutions™ Gum Health to keep your smile fresh and healthy, and continue that three-step oral care routine
First-aid must-haves: Time to restock the first-aid kit? Consider using OTC allowances for essentials like BAND-AID^® Brand PRO-HEAL^®.

How to save using OTC benefits

Here are the three primary ways* Medicare Advantage providers typically allow members to use OTC allowances:

Order by catalog: Your Medicare Advantage provider should have an OTC catalog or website listing OTC-eligible products. You can place orders through the website, via the app, by phone or by mail.
Debit card at retail: Use your OTC debit card and purchase eligible items in a separate transaction. This method often gives you more brand choices than the catalog.
Receipt reimbursement: After purchasing an OTC-eligible product, you may submit receipts for reimbursement through your provider.

As the number one consumer healthcare company by revenue, Kenvue is committed to ensuring that Medicare Advantage members understand their OTC benefits and use them to support their everyday care. Don't lose out, learn more about Kenvue's OTC-eligible products at https://www.kenvuebrands.com/us/medadvantage.

*If you're unsure how to use your benefit or what products are eligible, contact your Medicare Advantage provider for more information.

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Use it or lose it: Make your Medicare Advantage OTC Dollars Work For You

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