Take advantage of the Medicare grocery allowance

By Devoted Health Team
November 8, 2024

These days, just one trip to the grocery store can put a big dent in your budget. After all, the cost of groceries has risen 27% since 2020! The latest reports say that price hikes have slowed down, but many people are still feeling the pinch — and it can be especially challenging if you’re living with a chronic health condition since you’re budgeting for medical costs on top of everyday expenses.

Thankfully, there’s a Medicare benefit that can help. It’s called a Medicare grocery allowance, and sometimes it’s offered with Medicare Advantage Special Needs Plans (SNPs) — and some HMO and PPO plans may offer it as well. If you qualify, you could get funds (which may be in the form of a debit card) every month to use toward buying healthy foods. Think of it as an extra helping hand when it comes to staying healthy and saving money!

With some plans, the grocery allowance can be used toward a range of over-the-counter items, or even household expenses, such as utility bills.*

Note: Original Medicare and Medicare Supplement plans do not offer the grocery allowance benefit. Also, Medicare Advantage plans are not required to include this extra benefit.

How does the Medicare grocery allowance work?

How the Medicare grocery allowance works — and the amount you get monthly — varies according to where you live and the Medicare Advantage plan you enroll in (see your plan’s Summary of Benefits and Coverage or Evidence of Coverage for details).

Most likely, you’ll receive a debit card or “flex card” in the mail. Simply activate the card, then use it to pay for items online or at the store. Just remember: Don’t throw it away when you’re done! Depending on your plan, it may automatically “reload” with funds in the following month.

Keep in mind:

• With some Medicare Advantage plans, the grocery allowance is a “use it or lose it” benefit, which means the funds on your card will not roll over each month.
• Medicare Advantage plans are not required to notify or remind you about what your balance is and what date that balance should be used by. If you’re not sure about your balance, just call your healthcare company.
• Be sure to read your Annual Notice of Change (ANOC) letter each year, which arrives right before the Medicare Annual Enrollment Period (AEP) begins. Plans can change, so it’s always good to double-check your benefits during AEP. For example, if your plan offered a grocery allowance, make sure that it’s still being offered for the coming year. That way, you can adjust your budget if need be.

What can you buy with the Medicare grocery allowance?

This can also vary by plan, but, generally, the Medicare grocery allowance can be used toward nutritious foods, which may include:

• Fresh fruits and vegetables
• Frozen produce
• Eggs
• Dairy products
• Meats and seafood
• Frozen meals
• Staples, like beans, tomato products, and rice
• Water
• Canned vegetables and fruits
• Soups

The purpose of the grocery allowance is to help you eat healthy, so it’s meant for buying nutritious foods. Again, this can vary by plan. Here are some items that may not be covered by the Medicare grocery allowance:

• Alcohol
• Tobacco
• Pet food
• Baby formula

Some plans may also allow you to use the Medicare grocery allowance toward over-the-counter items and housing costs,* including:

• Over-the-counter medicines
• Vitamins and supplements
• Everyday items, like toothpaste and sunscreen
• First-aid supplies
• Electricity
• Water, sewer, trash
• Home heating fuel (like oil or natural gas)
• Internet, satellite, cable, and phone
• Rent or mortgage

Note: You can’t spend the Medicare grocery allowance on money orders, prepaid cellphone service, or gasoline for your car.

Where can I use my food card?

Participating stores usually include large supermarkets or drugstores, but where you can shop depends on which Medicare Advantage plan you enroll in. Contact your health insurance company for the list — and details on what items your card can be used for.

Other resources for help with meals and groceries

Need a little extra help? There are other organizations outside of your Medicare Advantage plan that offer meal support, including:

• Local food banks and food pantries
• Community centers and places of worship
• Meals on Wheels: Prepared meal delivery
• The Supplemental Nutrition Assistance Program (SNAP)

Who is eligible for a Medicare grocery allowance?

To apply for the Medicare grocery allowance, you’ll need to be enrolled in a Medicare Advantage plan that offers this benefit. (Remember, not all Medicare Advantage plans include a grocery allowance.)

Note: Some people may not qualify, even if they are enrolled on a Medicare Advantage plan with a grocery allowance.

Plans that do usually include this benefit are Medicare Special Needs Plans (SNPs), such as:

Chronic Condition Special Needs Plans (C-SNPs) — designed for people living with chronic illnesses and disabling chronic medical conditions. C-SNPs can help make prescriptions and treatments less expensive. You may qualify with conditions such as:

• Autoimmune disorders
• Cardiovascular disorders
• Diabetes
• End-stage renal disease requiring dialysis
• Stroke-related conditions

Dual Needs Special Needs Plans (D-SNPs) — designed for people who are financially challenged, and, therefore, “dual-eligible” — meaning they qualify for both Medicare and Medicaid.

Be aware of Medicare scammers

If someone claims they’re from Medicare and offers you a free debit card with a grocery allowance, please be careful, as they may be a Medicare scammer. Reminder: Medicare Advantage offers these benefits, but traditional Medicare (also known as Original Medicare) does not — and even with a Medicare Advantage plan, you may not be eligible.

How Devoted can help

We have licensed representatives available to help you with any questions about Devoted Health Medicare Advantage plans. Call us at 1-800-483-8066 (TTY 711) for personalized assistance.

You can also learn more about your Medicare options in this free Medicare Comparison Guide.

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*The Food & Home Card is a special supplemental benefit available only to chronically ill members with eligible chronic health conditions, like diabetes, high blood pressure, high cholesterol, heart problems, and stroke. Other conditions may be eligible. All applicable eligibility requirements must be met before the benefit is provided. Not all members qualify. The Food & Home Card is not available on all plans. For D-SNP plans, you must receive "Extra Help" to qualify for the Food & Home Card.