Medicare Advantage plans are highly popular in part because of theirsupplemental perks, but many of those perks that help you save money inretirement may be going away. Perks like over-the-counter (OTC) allowances,grocery cards, transportation, and meal delivery are quietly being scaled back,and you might find that your plan lacks some of the extras that gave it itsvalue.
Here’s what to know about the changes coming to some Medicare Advantage plansand how they might impact you.
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Why Medicare Advantage plans are so popular
Medicare Advantage plans are an alternative to traditional Medicare plans. Theseprivate health plans are provided by health insurers contracting with theMedicare program. Medicare Advantage plans offer all the benefits you wouldreceive with Medicare Parts A and B, plus they often provide Part D prescriptiondrug benefits. Many Advantage plans also offer perks that traditional Medicareplans don’t, such as gym memberships, glasses, and some dental coverage.
As a result, these plans are popular. According to KFF data, 54% of eligibleMedicare beneficiaries were enrolled in Medicare Advantage plans in 2025.Unfortunately, some of the perks that likely attracted some beneficiaries tothese plans are being eliminated.
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OTC allowances
Most Medicare Advantage plans include an OTC benefit that you are able to use topurchase eligible OTC items like toothpaste, vitamins, and cough syrup, andthere’s no extra plan cost for that benefit. The OTC benefits may help makeaffording health essentials easier and is a popular perk to many plans.
But in 2026, some Medicare Advantage plans started scaling back their OTCbenefits. In 2025, 73% of Advantage plans offered an OTC allowance, but thatdeclined to 66% of plans in 2026. The standalone OTC limit also dropped anaverage of 13% in 2026, declining to $23 per month.
Plans are also limiting beneficiaries’ abilities to roll over unused OTC funds.In 2026, OTC rollover offerings dropped from 9.6% to 2.4% of plans, meaning thisvaluable perk is now a rarity. To take full advantage of their OTC benefits,Medicare Advantage enrollees must use all of their OTC funds.
Meal benefits
Some Medicare Advantage plans offer grocery allowances, and the benefits areoften issued through prepaid debit cards or flex cards. The funds help enrolleespurchase healthy foods and produce, which may be particularly valuable as foodcosts increase.
Those meal plan benefits are becoming less common, though. KFF data reveals thatin 2025, 65% of Advantage plans offered meal benefits, while just 57% of plansoffered those same benefits in 2026. Meal benefits are also being cut fromSpecial Needs Plans; in 2025, 73% of plans offered meal benefits, which droppedto 66% of plans in 2026.
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Transportation coverage
Medicare Advantage plans may also offer transportation coverage. Some planscover Uber or Lyft transportation to help you get to doctor’s appointments, thefitness center, and more.
The number of plans offering transportation coverage declined in 2026. Accordingto KFF data, in 2025, 30% of Medicare Advantage plans offered transportationcoverage, which fell to 24% of plans in 2026.
Why benefits are decreasing
While the government announced that 2027 payments to Medicare Advantage planinsurers would average 2.48%, that rate is lower than expected. Insurers likeHumana have already announced that they need to cut benefits to keep upwith rising health care costs and low reimbursement rates.
Since Medicare funding hasn’t kept up with the climbing health care prices,insurers are under pressure, and these extra perks, like OTC coverage and gymmemberships, are the first to go to keep the plans profitable.
Plans’ core benefits, like vision, dental, and hearing, remain nearly universal,but as insurers must submit their 2027 Medicare Advantage plans and benefit bidsto the government, chances are those plans and perks may change.
What to do before Medicare Advantage enrollment periods
If you need to change your plan, you may do so during the Medicare AnnualEnrollment from October 15 through December 7, or the Medicare Advantage OpenEnrollment from January 1 through March 31. If you wait for the Open Enrollmentperiod, your current coverage might change and no longer be a good fit in 2027,so it may be best to make any changes to your coverage by December 7.
Now is the time to prepare. Compare your current plan’s Evidence of Coverageagainst what’s offered for the coming year, and don’t assume that the planyou’ve had this year is still in place. You may use Medicare’s Plan Finder toolto check benefit-by-benefit comparisons to see how different plans stack up andto determine which is best for your needs.
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Bottom line
Medicare Advantage plans often undergo changes, but if the perks that initiallydrew you to your plan are no longer available, that plan might not be the bestfit. If you’re considering exploring a new plan, make sure that your doctor andproviders are within the plan’s network, and that your prescription medicationsare covered, too.
Taking the time to start comparison shopping plans in advance may help ensureyou choose the best coverage that helps maximize your seniorbenefits and gives you the best value.
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