How the OTC Card Works & How to Use Your Benefits
Master your OTC card. Discover how this health benefit works, from activation to maximizing its use for your wellness needs.
An Over-the-Counter (OTC) card functions as a prepaid debit card, provided by specific health plans to their members. This card offers a convenient way to purchase health-related products without using personal funds.
These cards are funded by select health insurance programs, often associated with Medicare Advantage plans. They provide a predetermined amount of money that can only be used for eligible over-the-counter health and wellness products.
Understanding Your OTC Card Benefits
OTC cards are offered to individuals enrolled in certain health insurance programs, most commonly Medicare Advantage (Part C) plans. Eligibility for an OTC card is tied directly to membership in a plan that includes this benefit. Individuals covered by Original Medicare (Parts A and B) do not receive this specific benefit.
The range of items covered by an OTC card can vary between health plans. Common categories include over-the-counter medications like pain relievers, cold and flu remedies, and allergy relief. Other frequently covered products are first-aid supplies, vitamins, dietary supplements, and various personal care items such as dental hygiene products. Some plans may even extend coverage to broader health-related goods like certain healthy foods, exercise equipment, or specific utility bills.
Health plans allocate benefits to the OTC card as a set dollar amount per defined period. Funds are loaded onto the card on a regular basis, such as monthly, quarterly, or annually.
Activating and Using Your Card
Before making any purchases, your OTC card requires activation. This process involves calling the customer service number on the back of the card or visiting your health plan’s online portal. Following the instructions, which may include entering your card number and other personal verification details, will activate the card for use.
Once activated, the OTC card can be used at a network of participating retailers. These include major pharmacies, grocery stores, large retail chains, and online stores. Many health plans provide online directories or mobile apps to help members locate participating merchants.
When making a purchase, the OTC card functions like a standard debit or credit card at the point of sale. You simply swipe the card and select the “credit” option, as a Personal Identification Number (PIN) is not required for these transactions. For online purchases, the card details are entered during the checkout process on the retailer’s website.
Should a purchase exceed the available balance on your OTC card, you will be prompted to provide an additional form of payment to cover the remaining amount. In some cases, if only part of a transaction is eligible, the card will automatically apply funds to the eligible items, and you pay for the rest.
Managing Your Card
Most health plans offer an online member portal or a mobile application where you can view your remaining funds. Alternatively, you can check your balance by calling the customer service number on the back of your card.
The funds on your OTC card are allocated for specific benefit periods, such as monthly or quarterly. It is important to understand your plan’s policy regarding unused funds, as they commonly expire at the end of each benefit period and do not roll over to the next. While some plans may allow for limited rollovers, it is advised to utilize your full allowance within its designated timeframe.
If your OTC card is lost or stolen, contact your health plan’s member services immediately. Reporting the incident allows them to deactivate the compromised card and arrange for a replacement. A new card requires activation upon receipt.
For questions about your benefits, card usage, or eligible items, you can find a contact number on the back of your OTC card or your health plan’s member identification card. Many plans also offer support through their online portals or mobile applications.