The rising prices of groceries and food are especially challenging for older adults, who generally rely on Social Security benefits, retirement savings, or other sources of fixed income. Fortunately, Medicare Advantage plans are available, and some offer a grocery allowance, or health foods benefit, as part of their “special supplemental benefits for chronically ill” category. This article delves into the specifics of Medicare grocery allowances, including eligibility, covered items, and how to make the most of this valuable benefit.
Understanding Medicare Grocery Allowances
A Medicare grocery allowance is a credit that beneficiaries can use toward healthy foods at the grocery store. Certain Special Needs Plans (SNPs)-which are a type of Medicare Advantage plan- include a grocery allowance as a benefit. These allowances help people with chronic health conditions or disabilities pay for nutritious food.
Original Medicare and Medicare Supplement plans do not offer the grocery allowance benefit.
Eligibility for a Medicare Grocery Allowance
Medicare grocery allowances aren’t available to every Medicare beneficiary. 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.)
Plans that do usually include this benefit are Medicare Special Needs Plans (SNPs). People who are eligible for both Medicare and Medicaid can sign up for Special Needs Plans that may provide a grocery allowance benefit.
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Some people may not qualify, even if they are enrolled on a Medicare Advantage plan with a grocery allowance.
Types of Medicare Advantage Plans Offering Grocery Allowances
Private insurance companies offer Medicare Advantage plans, and they determine what benefits their Special Needs Plans include. There are three types of Special Needs Plans (SNPs), but not all of them include grocery allowances.
Dual-Eligible Special Needs Plans (D-SNPs)
Also called D-SNPs, these plans are reserved for people who are “dually eligible,” meaning that they are eligible for both Medicare and Medicaid. Many Medicare Advantage D-SNPs include a grocery allowance. Other benefits can include over-the-counter (OTC) benefit cards, rent and utility assistance, and transportation services. If you’re eligible for both Medicare and Medicaid, you may be able to enroll in a D-SNP. Medicaid is a joint federal and state program that supports people with limited resources. Eligibility varies from state to state.
Chronic Conditions Special Needs Plans (C-SNPs)
Chronic Conditions Special Needs Plans, or C-SNPs, are specialized Medicare Advantage plans for people with chronic or disabling conditions. These plans can include a grocery allowance, but it’s rare. It’s more common to see OTC cards as a benefit included with C-SNPs.
These Medicare Advantage (Part C) plans offer additional benefits tailored to managing certain chronic conditions. Some C-SNPs include help with grocery expenses as part of their broader health management services. You may qualify with conditions such as:
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- alcohol or substance use disorder
- certain autoimmune disorders, including rheumatoid arthritis and systemic lupus erythematosus
- cancer
- certain cardiovascular disorders, including cardiac arrhythmias and coronary artery disease
- heart failure
- dementia
- diabetes
- end stage liver disease
- end stage renal disease requiring dialysis
- certain blood disorders, including hemophilia and sickle cell disease
- HIV
- certain lung disorders, including asthma and emphysema
- certain mental health conditions, including bipolar disorder and schizophrenia
- certain neurologic disorders, including amyotrophic lateral sclerosis and Parkinson’s disease
- stroke
Institutional Special Needs Plans (I-SNPs)
Institutional Special Needs Plans (I-SNPs) are for Medicare beneficiaries who need an institutional level of care through skilled nursing or similar facilities. This type of Special Needs Plan doesn’t usually come with a grocery allowance.
Program of All-Inclusive Care for the Elderly (PACE)
PACE combines Medicare and Medicaid benefits for people ages 55 years or older who meet specific health and income criteria. PACE programs provide a wide range of services to help older adults remain at home instead of transitioning to a nursing home. This might include a grocery allowance and home-delivered meals. To qualify for PACE, you must be of qualifying age, live in a PACE service area, be certified as needing nursing home-level care, and be able to live safely in the community with PACE support. Just be aware that you can’t be enrolled in Medicare Advantage, Part D, hospice, or certain other programs at the same time. If you’re eligible, you must share medical and personal information for an assessment and sign an enrollment agreement.
How the Medicare Grocery Allowance Works
How a Medicare grocery allowance works depends on your insurance carrier and plan. In many cases, D-SNPs provide flex spending cards that you can use like a debit card. These cards are typically preloaded on a monthly or quarterly basis.
C-SNP and D-SNP enrollees usually receive a Medicare Advantage food allowance card. This is usually a prepaid debit card, different from the Medicare Flex card. This prepaid debit card differs from a Medicare Flex card, which can be used only for certain health and wellness expenses.
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.
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Allowance Amount
The amount of Medicare grocery allowance you receive depends on your Medicare Advantage plan. For example, Aetna’s Dual Eligible Special Needs Plans offer an average of $150 per month for groceries. Certain Humana plans offer a Healthy Options allowance, which can be spent on groceries and OTC catalog products. Monthly allowances begin at $25/month. The monthly Healthy Options allowance is $25-225.
Using the Allowance
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. For Humana members who meet certain criteria, like having qualifying chronic health conditions, this allowance may also be used to help pay for eligible food, utilities, phone service, even rent or mortgage payments.
Important Considerations
Most of the time, the monthly grocery allowance doesn’t roll over to the following month. This means that you’ll want to use your balance before the month ends to get the most out of this benefit. Some Medicare Advantage plans provide members with their grocery allowance every three months. In this case, you’ll want to use up your balance by the end of the quarter.
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 You Can Buy with a Medicare Grocery Allowance
You can typically only buy foods that are considered healthy with a Medicare grocery allowance. This includes fruits and vegetables, dairy products, proteins, grains, some frozen meals, canned goods, and healthy snacks like nuts and granola bars. Processed foods and foods high in saturated fats, like chips, candy bars, and sodas are usually ineligible for purchase with a 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. 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
You can’t spend the Medicare grocery allowance on money orders, prepaid cellphone service, or gasoline for your car.
It’s important to check with your plan provider to confirm which retailers accept the Medicare Advantage food allowance card and which items you can purchase with it. Your plan provider can supply a predetermined list of covered food items.
Where You Can Use the Allowance
Medicare Advantage plans with grocery allowances often limit where you can use them. 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.
Common eligible retailers include:
- Walmart
- Kroger
- CVS
- Walgreens
- Publix
- Sam’s Club
- Dollar General
It’s important to note that the above stores may not be eligible under your plan, and your plan may offer different options. Some insurance providers also offer the option to shop online or by phone.
Medicare Advantage Meal Benefits
Medicare Advantage meal benefits and Medicare grocery allowances may sound alike, but they are not the same. More Medicare Advantage plans offer meal benefits than grocery allowances. In 2025, the Kaiser Family Foundation found that 65% of Medicare Advantage plans offer meal benefits.
These meal benefits often pay for you to get meals delivered after you’ve been discharged from the hospital or another type of inpatient care. Medicare Advantage plans may also provide meal benefits for people with certain chronic health conditions. Typically, you’ll be eligible for a set number of meals or for a set period of time. These meals also need to be considered healthy and meet nutritional guidelines.
Some Medicare Advantage plans offer temporary meal benefits after you’ve been discharged from a hospital, skilled nursing facility, or other inpatient healthcare facility. That said, you may be limited to a select number of meals within a set time frame. If you have a chronic condition, your healthcare professional may be able to order or prescribe temporary meal benefits without an inpatient stay.
Most plans require meals to be aligned with Medicare’s daily nutritional guidelines. You can usually receive meals tailored to dietary restrictions, such as vegan, vegetarian, or gluten-free. Meals are usually delivered ready to eat, without any additional ingredients or preparation. Depending on your service area, meals may arrive hot, ready to refrigerate, or frozen.
How to Enroll in a Medicare Advantage Plan with a Grocery Allowance
In order to enroll in a Part C plan that offers a grocery allowance, you first need to enroll in Original Medicare (parts A and B). Once you’re enrolled, you can then switch over to a Part C plan. These plans generally offer the same coverage, along with some additional benefits in many cases, like vision or dental insurance. That said, not every location will offer a C-SNP or a D-SNP plan, so you’ll need to enter your zip code on Medicare.gov to verify your options. Once you select your plan, you can enroll in one of the qualifying enrollment periods. You may need to verify your eligibility directly with the insurer.
Already have a Humana Medicare Advantage plan? If you are diagnosed with 1 or more chronic conditions after you’ve enrolled in a plan, you may qualify to switch to a plan that includes the Healthy Options Allowance. Note: You can also check your plan’s Evidence of Coverage document to understand the eligibility requirements for this benefit. For more information on your eligibility, please sign in to your MyHumana account.
Additional Resources for Food Assistance
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)
The Department of Agriculture (USDA) offers food assistance for older adults who have a low income. These programs include:
- Senior Farmers Market Nutrition Program (SFMNP) - Provides coupons for fresh fruits, vegetables, honey, and herbs. You can use the coupons at farmers markets, roadside stands, and community farms.
- Commodity Supplemental Food Program (CSFP) - Provides a monthly package of healthy food. USDA distributes food to local agencies where you can pick it up. In some states, you may be eligible to have your food delivered.
SFMNP and CSFP are not available in every state. If your state participates in one or both programs, you may be eligible if you are:
- 60 or older
- Have an income at or below 185% of the federal poverty income guidelines
If neither program is on your state's list, you may be eligible to get food stamps through the Supplemental Nutrition Assistance Program (SNAP).
HealthPartners can also help you find food and nutrition assistance. Through their partnership with Unite Us, you can search support programs near you. If you’re a HealthPartners MSHO plan member, contact your MSHO care coordinator to get started. If you need help or have additional questions, contact Member Services. MSHO fresh produce allowance eligibility requirements The fresh produce allowance benefit is part of special supplemental benefits for members with certain chronic conditions, such as heart failure, dementia, diabetes, cancer or a disabling mental health condition. Not all members will qualify, and all applicable eligibility requirements must be met. For details and a complete list of eligible conditions, please contact them.
Changes to Dual Special Needs Plans in 2026
There will be notable changes to certain plans in 2026. One of the biggest industry-wide changes applies to Dual Special Needs plan (D-SNP) members. Through 2025, UnitedHealthcare Dual Special Needs Plan (D-SNP) members receive a monthly credit to help pay for OTC products, healthy food and utility bills.
In 2026, members can still get the credit; however, due to an industry-wide change, members will need to have a qualifying chronic health condition to spend credits on healthy food and utilities. The Centers for Medicare and Medicaid Services (CMS) is ending a program called the Value-Based Insurance Design (VBID) model. This program helped health plans give extra non-medical benefits, like credits for healthy food and utilities. Qualifying conditions may vary by carrier.
If you’re already a UnitedHealthcare D-SNP member, they'll do their best to verify that you have a qualifying condition using the information they have. For UnitedHealthcare to obtain the additional information, you will first need to go online or call them to self-indicate a condition. Then, they’ll work with your treating physician to verify your condition. If you’re enrolling in a UnitedHealthcare Dual Special Needs plan for the first time, you may be asked to fill out the Additional Benefit Verification Form when you enroll. This release gives them permission to access things like your claims data and other files to find any prior diagnoses that may meet the SSBCI criteria.
You’ll still keep your UnitedHealthcare Dual Special Needs plan. You don’t need a qualifying condition to stay enrolled or to keep your full monthly credit for OTC products - it will still be added to your UnitedHealthcare UCard® every month. Plus, you can use your monthly credit on wellness support like select fitness items. Or, get assistance through The Helper Bees for in-home services, weight management counseling, caregiver relief and more. If you think you should qualify, you’ll need to either go online or call them. This change affects all insurance companies that offer Dual Special Needs (D-SNP) plans - not just UnitedHealthcare.
Beware of Medicare Scams
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.