If you feel like every time you go to the grocery store, you end up having to pay more money for less food, you’re not alone. Recent inflation and supply chain pressures have pushed up the prices of many items at supermarkets around the country.
These increases can be difficult for anyone to manage, but for older adults on fixed incomes, the rising cost of food can be especially challenging.
However, the Medicare grocery allowance — a benefit that may help offset some of the costs of healthy foods for seniors — can help.
Here, we’ll walk through everything you need to know about the Medicare grocery allowance offered by some Medicare Advantage plans.
Is the Medicare Grocery Allowance Real?
For seniors struggling to make ends meet, the concept of a grocery allowance connected to their Medicare benefits is appealing — and it is, in fact, real. However, it’s not available with every plan.
“Original Medicare (Parts A and B) does not offer any grocery allowances, but some of the Medicare Advantage plans do,” notes Stephanie Pogue, a St. Louis-based certified Medicare insurance planner and the CEO of St. Louis Insurance Group.
[READ: Eating for Your Brain as a Senior.]
Which Medicare Plans Have a Grocery Benefit?
Certain Medicare Advantage special needs plans (SNPs), a type of Medicare Advantage program, may offer a grocery allowance. These plans include:
— Chronic Condition SNPs (C-SNPs), designed for people who have chronic illnesses, such as diabetes or congestive heart failure
— Dual Special Needs Plans (D-SNPs), specifically for beneficiaries who qualify for both Medicare and Medicaid
[Read: 5 Steps for Picking a Medicare Plan.]
Who Is Eligible for a Grocery Allowance?
Not everyone will qualify for a Medicare grocery allowance, even if they have a Medicare Advantage plan that includes this option. The grocery allowance is usually only offered to those with special needs plans, such as D-SNPs.
If you’re not sure what you might be eligible for, talk with a local licensed agent who can help you wade through the options to pick the best Medicare coverage.
[READ: How Do You Apply for Medicare?]
How Does the Medicare Advantage Grocery Allowance Work?
In most cases, enrollees receive a prepaid card, often called a Medicare food card. Your grocery allowance is typically credited to the card on a monthly basis, says Whitney Stidom, vice president of sales and operations with eHealth Inc., a health insurance broker and online resource provider headquartered in Santa Clara, California.
The food allowance card makes it easy to pay for groceries at the store, but don’t confuse this card with a Medicare flex card, which some Medicare Advantage plans also offer, advises Bob Rees, chief sales officer with eHealth, Inc.
The Medicare flex card is a prepaid card that you can use to pay for certain health care services and products, such as hearing aids, eyeglasses and over-the-counter medications. The concept of using a Medicare flex card at the store to cover your expenses is similar to the grocery allowance but follows different rules.
What Is the Average Medicare Grocery Allowance?
The dollar value of the Medicare grocery allowance varies from plan to plan, typically ranging between $25 and $200 or more per month, Stidom says.
Some unscrupulous marketers try to make it sound like the dollar value is significantly higher, but the benefit is typically fairly modest.
The allowance also needs to be used within the month — the money doesn’t typically roll over from one month to the next. In other words, use it or lose it.
What Can I Buy With the Medicare Grocery Allowance?
You can use this grocery store allowance for essential and healthy food items, including:
— Fruits and vegetables
— Grains
— Dairy products
— Eggs
— Soup
— Meat
— Frozen foods
— Flour, sugar and other staples
Because the benefit is intended to support healthy living, there are some items you might find at the grocery store that the allowance won’t cover, Stidom adds. Excluded items include:
— Alcohol
— Tobacco
— Desserts
— Pet supplies and other non-food items
Should You Get a Medicare Advantage Plan With a Grocery Allowance?
If making ends meet and affording healthy food is a challenge, it might be worth enrolling in a Medicare Advantage plan that includes a grocery allowance.
You’ll need to weigh whether that benefit is worth the premium cost of the plan or if you can enroll in a different plan that lowers your out-of-pocket costs elsewhere so you can purchase healthy food.
In addition, keep in mind that the grocery benefit is not part of original Medicare. If someone is trying to offer you a debit card for groceries, it’s probably a scam.
Is the Grocery Allowance Available Every Year?
If you rely on a Medicare grocery allowance, “pay careful attention during this fall’s annual enrollment period,” Rees advises. “Due to changes in federal regulations, some plans offering grocery allowances in 2024 may be forced to drop that benefit in 2025.”
Your plan will notify you with an “Annual Notice of Change” letter from your Medicare Advantage plan.
“If your plan no longer offers a grocery allowance, make sure to look into your options during the fall annual enrollment period, which begins on October 15,” Rees advises.
Other Options for Help With Food Expenses
The Medicare grocery allowance isn’t the only option for seniors who need help affording good quality foods. Stidom also recommends:
— Meals on Wheels America. Meals on Wheels is a long-standing network of more than 5,000 community-based programs across the United States that provide meals to homebound seniors. The organization feeds more than 2 million seniors every year and provides important social interaction from volunteers in the community.
— SNAP. The Supplemental Nutrition Assistance Program offers food benefits to low-income families to help them afford nutritious food. The National Council on Aging reports that the SNAP program helps about 5 million older adults afford the healthy food they need.
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Medicare Grocery Allowance: What to Know originally appeared on usnews.com
Update 07/24/24: This story was previously published at an earlier date and has been updated with new information.
