Changes in Medicare Advantage Plans: Decline in Supplemental Benefits
Medicare Advantage plans, which have long attracted beneficiaries with supplemental perks, are seeing notable changes in their offerings as insurers adjust to rising healthcare costs.
Traditionally, these private insurance alternatives to Medicare have lured enrollees by providing benefits beyond Original Medicare, such as dental and vision coverage. However, a recent analysis by KFF highlights a downward trend in some supplemental benefits that had previously enhanced their attractiveness. For instance, over-the-counter (OTC) allowances in these plans have been reduced significantly. The percentage of plans offering such benefits has dipped from 73% in 2025 to just 66% in 2026, and the average monthly allowance has been cut by 13% to $23. Additionally, the flexibility to roll over unused funds has nearly vanished, dropping from 9.6% to a mere 2.4% of plans.
Declining Supplemental Benefits
Beyond OTC allowances, other supplemental features are becoming less prevalent in Medicare Advantage plans. Grocery allowances, an incentive provided through debit or flex cards to encourage healthier food purchases, are now offered by only 57% of plans in 2026, compared to 65% in the previous year. This decline extends to Special Needs Plans (SNPs), where meal benefits are included in 66% of the offerings in 2026, down from 73% in 2025. Furthermore, the availability of transportation support to medical appointments has been reduced, with only 24% of plans offering this benefit in 2026, compared to 30% the year before.
| Benefit | 2025 | 2026 |
|---|---|---|
| OTC Allowances | 73% of plans | 66% of plans |
| Grocery Allowances | 65% of plans | 57% of plans |
| Transportation Support | 30% of plans | 24% of plans |
Reasons Behind the Shift
The reduction in these added benefits is largely driven by the insurers' need to control rising healthcare costs while maintaining the profitability of their Medicare Advantage offerings. Despite the tightening of these supplemental features, the core benefits like vision, dental, and hearing remain largely unchanged and continue to be available in over 98% of the plans. This trend underscores the importance for beneficiaries to closely examine their options during the Annual Enrollment Period, running from October 15 to December 7. By doing so, they can ensure their coverage aligns with their needs amid this shifting landscape.