Home / Health / Seniors Miss Out on $5 Billion in Health Benefits
Seniors Miss Out on $5 Billion in Health Benefits
17 Dec, 2025
Summary
- Seniors annually leave $5 billion in Medicare Advantage OTC benefits unused.
- These funds cover everyday essentials, easing financial burdens for seniors.
- Benefit reduction and confusion prevent seniors from accessing their allowances.
Seniors are collectively leaving an astounding $5 billion in Medicare Advantage over-the-counter (OTC) benefits unclaimed annually. These insurance-provided allowances, averaging $400 per person, are meant for essential health and wellness products, ranging from medications to daily necessities like toilet paper and sunscreen.
Inflation has made these OTC benefits increasingly vital for seniors living on fixed incomes, helping them manage rising costs for everyday items. Despite their importance, many beneficiaries remain unaware of these funds or struggle with complex purchasing systems and confusing plan details. This widespread underutilization leads to billions in valuable benefits expiring unused each year.
Compounding the issue, these essential ancillary benefits are declining. Between 2024 and 2025, the availability of OTC benefits in Medicare Advantage plans dropped significantly. Experts urge seniors to actively check their plans during enrollment periods, understand eligible items, and utilize their allowances before they are reduced or eliminated, emphasizing the direct impact on quality of life and financial stability.
