Medicare Advantage OTC Benefits Drive Growth for Independent Pharmacies

Medicare Advantage OTC benefits are emerging as a significant growth opportunity for independent pharmacies in the U.S. market. With rising healthcare costs and increasing reimbursement challenges, independent pharmacies are seeking new revenue streams and patient service enhancements through these benefit programs. These benefits allow pharmacies to offer over-the-counter products as part of Medicare Advantage plans, potentially improving patient savings and satisfaction. At the Total Pharmacy Solutions Summit Fall 2025, industry expert Saeed Aboelzahab of Cardinal Health highlighted the changing pharmacy landscape, emphasizing the importance of strategic adaptation to government-driven pricing and reimbursement policies. Independent pharmacies can leverage Medicare Advantage OTC benefits to diversify revenues, but this requires thorough understanding and implementation strategies. The integration of Medicare Advantage OTC benefits necessitates pharmacies to educate their patients about the offerings, helping them utilize these benefits effectively. This patient-centric approach can improve both patient outcomes and pharmacy profitability. Additionally, staying agile to the evolving regulatory and market conditions remains critical for pharmacies to maintain competitiveness against larger retail chains. Overall, Medicare Advantage OTC benefits represent a tactical avenue for independent pharmacies facing economic pressures. By aligning operational practices around these benefits, pharmacies can enhance patient care while navigating the complex healthcare reimbursement environment. Continued education, strategic planning, and responsiveness to healthcare trends will be key success factors in capitalizing on this opportunity.