The Medicare Grocery Allowance: Who Is Eligible and How It Works

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.

We get a lot of questions about Medicare grocery allowances, including if they’re real or a scam. Medicare grocery allowances are real, but not everyone is eligible for them.

Some Special Needs Medicare Advantage plans offer a grocery allowance for people who are eligible for both Medicare and Medicaid. Original Medicare and Medicare Supplement plans don’t have grocery allowances.

Read on to learn how Medicare Advantage Special Needs Plans can offer a grocery allowance and how it works.

Key takeaways:

• Medicare grocery allowances aren’t available to every Medicare beneficiary. 

• People who are eligible for both Medicare and Medicaid can sign up for Special Needs Plans that may provide a grocery allowance benefit.

• You can usually only buy certain healthy foods with a Medicare grocery allowance.

• Dual Eligible Special Needs Plans may provide a spending card that members can use to purchase eligible groceries. 

What is a Medicare grocery allowance?

A Medicare grocery allowance is a credit that beneficiaries can use toward healthy foods at the grocery store. Certain Special Needs Plans—which are a type of Medicare Advantage plan— include a grocery allowance as a benefit. 

Who is eligible for a Medicare grocery allowance?

Generally, only people who are eligible for Medicare and Medicaid are eligible for a grocery allowance through a Dual Eligible Special Needs Plan.

Which Medicare Advantage plans have a grocery allowance?

There are three types of Special Needs Plans (SNPs), but not all of them include grocery allowances. Private insurance companies offer Medicare Advantage plans, and they determine what benefits their Special Needs Plans include. Below, we explain the three types of SNPs and whether or not they have a grocery allowance.

Dual-Eligible Special Needs Plans

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. 

Chronic Conditions Special Needs Plans

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. 

Institutional Special Needs Plans

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. 

How much is the Medicare grocery allowance?

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. The monthly Healthy Options allowance is $25-225.

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. 

What groceries can you 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.

Where can I use the allowance?

Medicare Advantage plans with grocery allowances often limit where you can use them. 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.

How does the Medicare grocery allowance work?

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. 

As an example, UnitedHealthcare’s D-SNP plans can include a “Ucard,” which is a monthly, preloaded card that can be used to pay for healthy foods, OTC products, and utility-related expenses. Similarly, Aetna D-SNPs often come with an “Extra Benefits” card that you can use for groceries and other eligible goods and services. 

What is a Medicare Advantage meal benefit?

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.

You can contact your plan to learn more about what meal benefits you might be eligible for as well as to learn more about how to set them up. 

What are other Medicare resources for low-income seniors?

Nearly 17 million people aged 65 and up have low incomes and resources. Thankfully, there are various government-led Medicare resources available to help low-income seniors. 

• The Medicare Extra Help Program can help cover the cost of prescription drugs.

• If you qualify for any of the four Medicare Savings Programs, your premiums and out-of-pocket medical costs can be reduced. 

• Outside of Medicare, seniors can look into SNAP or CSFP for grocery assistance, LIHEAP for utility assistance, and other community resources.

Bottom line

If you need help with Medicare resources or you’d like to compare your options for Dual Eligible Special Needs Plans, get in touch with a Chapter Medicare agent at 855-900-2427 or schedule a time to chat.