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 nationwide.
These increases can be difficult for anyone to manage, but the rising cost of food can be especially challenging for seniors on fixed incomes.
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.
[READ: Navigating Medicare: Special Needs Plans and How They Can Help]
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. 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 in Chesterfield, Missouri.
Specifically, she is referring to Special Needs Plans (SNPs), available to people who meet specific financial and health eligibility guidelines.
[READ: How to Pay for a Nursing Home With No Money.]
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 with 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: Medicare vs. Medicaid: What Is the Difference?]
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 commercials and telemarketers make it seem like everyone qualifies,” Pogue says. But in reality, the grocery allowance is usually only offered to those with special needs plans, such as D-SNPs and C-SNPs.
If you’re unsure about your eligibility or the best plan for you, it’s advisable to seek guidance from a local licensed agent. They can help you navigate the options and choose the best Medicare coverage for your needs.
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 every month, says Whitney Stidom, vice president of sales enablement 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 it with a Medicare Flex card, which some Medicare Advantage plans also offer, advises Bob Rees, senior vice president and 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.
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What Is the Average Medicare Grocery Allowance?
The dollar value of the Medicare grocery allowance varies from plan to plan, but it’s typically between $25 and $200 or more per month. While some marketers may exaggerate the value, the benefit is indeed modest but significant, and any added funds can make a difference in your ability to pay for healthy foods.
Still, any added funds can make a difference in your ability to pay for healthy foods, so this allowance is a big deal for some seniors. In some cases, the allowance needs to be used within the month, Stidom says. In other words, use it or lose it. In other cases, some plans allow members to roll over unused funds from month to month, although usually not from year to year.
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 nonfood items
[Read: How to Choose the Best Medicare Advantage Plan]
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 C-SNP or D-SNP 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 or most Medicare Advantage plans. 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.
[READ: 5 Tips for Saving Money on a Plant-Based Diet]
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 annually 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 04/01/25: This story was previously published at an earlier date and has been updated with new information.
