Does my OTC card cover food?

November 15, 2025 •

4 min read

Recent healthcare data indicates an increase in Medicare Advantage plans offering supplemental benefits to address social determinants of health, including food insecurity. So, does my OTC card cover food? The simple answer is that it depends entirely on your specific health plan, as this is not a standard feature across all over-the-counter (OTC) cards.

Quick Summary

An OTC card may cover food, but only if your specific health plan includes a dedicated healthy food allowance. Standard OTC benefits are for medical supplies, so coverage for groceries is a separate, optional feature found primarily in some Medicare Advantage plans. Eligibility and covered items vary, so you must check your plan's details.

Key Points

Benefit Varies: Food coverage on an OTC card is not standard; it is an optional benefit offered by specific health plans.
Check Your Plan: You must review your plan documents or contact your provider to confirm if you have a healthy food allowance.
Medicare Advantage: These food benefits are most commonly found as a supplemental feature within Medicare Advantage plans.
Eligible Items: Coverage is typically limited to healthy staples like fresh produce, dairy, and lean proteins, not general groceries or junk food.
Participating Retailers: You can only use the food allowance at a specific network of approved stores, which your plan will list.
Separate Allowance: The funds for food are often a separate allowance from the benefit for over-the-counter medical supplies.
Use it or Lose it: Many food allowances operate on a monthly basis, and any unused funds at the end of the month may not roll over.

Understanding the Nuances of Your OTC Benefit

Many people receive an OTC card from their health insurance provider, most often as part of a Medicare Advantage plan. The primary purpose of this card is to help cover the cost of over-the-counter medical products, such as pain relievers, cold and flu medication, and first-aid supplies. However, a growing trend has seen some plans extend this benefit to include healthy food items. It is a critical distinction to understand that these are often two separate benefits, even if they are loaded onto the same physical card or managed through the same network. The key is to examine your plan's specific terms and not assume that a standard OTC card automatically functions as a grocery card.

The Difference: Standard OTC vs. Healthy Food Allowance

For many years, OTC cards were strictly for medical and wellness products. But with the shift towards holistic health, many insurers have added a separate, optional benefit specifically for groceries, often called a 'healthy food allowance'. This allowance is not part of the standard OTC benefit and has its own set of rules, including different qualifying items and expiration dates. For example, some plans might provide a monthly $20 limit for food purchases, separate from the allowance for medical supplies. This is why you may hear conflicting information from different plan members; their plans simply have different offerings.

What Foods Are Eligible?

Food items eligible for purchase typically focus on healthy and non-processed options. A specific health plan will provide a detailed list, but common examples include:

Fresh fruits and vegetables
Canned fruits and vegetables (without added sugar)
Frozen produce and meals
Dairy products like milk, cheese, and eggs
Meat, poultry, and seafood
Pantry staples such as flour, sugar, and spices
Healthy grains, including bread, pasta, and cereal
Beans and legumes
Nutritional shakes and bars

What Foods Are NOT Eligible?

While plans vary, most have strict exclusions for the types of food that can be purchased. Items generally not covered include:

Alcohol and tobacco products
Cosmetic or vanity items
Pet food
Ready-to-eat meals from a restaurant or deli
Junk food like candy, chips, and sodas
Household items and paper goods

How to Check Your Plan for Food Coverage

To determine if your OTC card covers food, follow these steps:

Review your plan documents: Check the Explanation of Benefits (EOB) or welcome packet from your health insurance provider. These documents will clearly outline any supplemental benefits, including a healthy food allowance.
Contact your plan directly: Call the member services number on the back of your insurance card. A representative can confirm your specific benefits and answer any questions.
Visit the plan's website or mobile app: Many plans have a dedicated online portal or app where you can view your benefits, check your balance, and find eligible items.

Comparison: Standard OTC vs. OTC with Food Benefits

This table illustrates the key differences between a standard OTC plan and one that includes a healthy food allowance.


Feature	Standard OTC Benefit	OTC with Healthy Food Allowance
Purpose	Purchase medical and wellness products.	Purchase specific healthy food items.
Funding	A specific dollar amount for OTC items.	An additional, separate dollar amount for food.
Eligible Items	Medications, first-aid, vitamins, etc.	Fresh produce, dairy, protein, grains.
Expiration	Funds may expire monthly, quarterly, or annually.	Food allowance typically expires at the end of each month.
Retailers	Many pharmacies and general stores.	A specific network of approved grocery stores.

Where Can You Shop for Eligible Food Items?

The ability to use your card for food is limited to participating retailers, which your health plan specifies. Major retailers often included in the OTC Network for food purchases include:

CVS
Walgreens
Walmart
Family Dollar
Dollar General

Additionally, some plans allow for online ordering through services like Instacart for delivery of eligible items. Always verify with your plan first, and use the store finder feature on your plan's website or app to confirm acceptance. You can find more information about Healthy Benefits Plus retailers on their Store Finder.

Conclusion

While a standard OTC card is not typically used for groceries, many health plans, especially Medicare Advantage, offer a separate healthy food allowance. This supplemental benefit is a fantastic way to stretch your budget for healthy eating. The key to accessing this benefit is to understand that it is not automatic. By checking your specific plan documents or contacting your provider, you can confirm whether you have this coverage and start using it at authorized retail locations. Don't leave money on the table—verify your benefits today and start shopping for a healthier you.

Frequently Asked Questions

No, you cannot buy any groceries. OTC card food benefits are a specific allowance for eligible, healthy food items, and coverage depends entirely on your health plan. These benefits are separate from standard OTC medical supply coverage.

To confirm if your plan includes a healthy food allowance, you should check your Explanation of Benefits (EOB), call the member services number on your insurance card, or log in to your plan's online portal.

Eligible food items typically include fresh fruits and vegetables, dairy products, meat, seafood, healthy grains, and pantry staples. The exact list is determined by your specific health plan.

No, alcohol, tobacco, and non-nutritional items like candy and soda are generally not covered by the healthy food allowance.

Accepted stores vary by plan but often include major retailers like CVS, Walgreens, Walmart, Dollar General, and Family Dollar. It's best to use your plan's store finder tool to confirm accepted locations.

In most cases, any unused food allowance funds will expire at the end of the month or quarter and do not roll over to the next period. Check your plan's rules to be certain.

Some health plans that offer a food allowance allow for online ordering and delivery through services like Instacart. You must check with your plan provider to see if this option is available and what fees are covered.