Medicare Advantage Is Quietly Cutting One of Its Most Popular Perks for Seniors

Medicare Advantage plans are highly popular in part because of their supplemental perks, but many of those perks that help you save money in retirement may be going away. Perks like over-the-counter (OTC) allowances, grocery cards, transportation, and meal delivery are quietly being scaled back, and your plan may lose some of the extras that made it valuable.

Here's what to know about the changes coming to some Medicare Advantage plans and how they might impact you.

Why Medicare Advantage plans are so popular

Medicare Advantage plans are an alternative to traditional Medicare. Private insurance companies offer these plans through contracts with the federal Medicare program.

Medicare Advantage plans provide all the benefits covered by Medicare Parts A and B, and many also include prescription drug coverage. Plans can also offer supplemental benefits that Original Medicare generally doesn't cover, such as dental, vision, hearing, fitness memberships, and certain other services.

That combination has helped Medicare Advantage become increasingly popular. According to KFF, 55% of eligible Medicare beneficiaries were enrolled in Medicare Advantage in 2026 — about 35.2 million people.

But some of the supplemental benefits that may have attracted beneficiaries to Medicare Advantage are becoming less widely available.

OTC allowances

Over-the-counter, or OTC, benefits can help Medicare Advantage enrollees pay for eligible health-related products such as toothpaste, vitamins, and certain over-the-counter medicines.

These allowances can provide meaningful savings, but they have become less common.

KFF found that 66% of individual Medicare Advantage plans offered an OTC allowance in 2026, down from 73% in 2025. The average monthly standalone OTC allowance also fell by 13%, to $23.

Plans have also become less likely to allow beneficiaries to roll unused OTC funds into the next period. The share of plans offering a rollover option fell from 9.6% in 2025 to 2.4% in 2026.

That means beneficiaries who have an OTC benefit should check the rules carefully, including how much they receive, which products qualify, and whether unused funds expire.

Meal benefits

Some Medicare Advantage plans offer grocery allowances, often issued through prepaid debit cards or flex cards. The funds help enrollees buy healthy foods and produce, which may be especially valuable as food costs rise.

Those meal plan benefits are becoming less common, though. 

Among individual Medicare Advantage plans, 57% offered a meal benefit in 2026, down from 65% in 2025. KFF also found that meal benefits declined among Special Needs Plans, from 73% of plans in 2025 to 66% in 2026.

The identical 73% to 66% percentages for OTC benefits and SNP meal benefits reflect two separate KFF measurements, rather than a duplicated figure. KFF reports the 73% to 66% decline for SNP meal benefits specifically.

Transportation coverage

Transportation assistance is another supplemental benefit that has become less common.

Some Medicare Advantage plans help cover transportation to medical appointments or other eligible destinations. But KFF found that the share of individual Medicare Advantage plans offering transportation fell from 30% in 2025 to 24% in 2026.

Transportation benefits can be particularly important for beneficiaries who have difficulty getting to medical appointments, so it's worth checking whether your plan offers the benefit and, if so, what restrictions apply.

Why benefits are decreasing

Several factors are pressuring Medicare Advantage insurers, including rising health care costs and efforts to improve the profitability of their Medicare businesses.

For 2027, insurers have already released their Medicare Advantage offerings, and beneficiaries can compare the plans available in their areas. An analysis of Medicare Plan Finder by Leerink Partners found reductions in some supplemental benefits, including dental allowances and Part B premium givebacks among major insurers.

The changes don't mean that all Medicare Advantage benefits are disappearing. Core supplemental benefits remain widely available. KFF found that 98% or more of individual Medicare Advantage plans offered vision, dental, or hearing benefits in 2026, although the amount and scope of coverage can vary substantially from plan to plan.

The important point for beneficiaries is that benefits can change from one plan year to the next. A benefit that was included in your plan this year isn't necessarily guaranteed to remain unchanged next year.

What to do before Medicare Advantage enrollment periods

Medicare's Annual Enrollment Period runs from October 15 through December 7. During this period, beneficiaries can review their current Medicare Advantage coverage and compare it with other plans available for the coming year.

With 2027 plans now available, this is the time to compare your current coverage with the alternatives in your area rather than assuming your existing plan will remain the same.

Compare your current plan's Evidence of Coverage with what's offered for the coming year, and don't assume the plan you've had this year will still be in place. You can use Medicare's Plan Finder tool to compare benefits side by side and see how plans stack up for your needs.

Bottom line

Medicare Advantage plans often undergo changes, but if the perks that initially drew you to your plan are no longer available, that plan might not be the best fit. If you're considering a new plan, make sure your doctor and providers are in network and that your prescription medications are covered, too.

Starting comparison shopping in advance may help you choose the best coverage that maximizes your senior benefits and provides the best value.

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