Medicare Managed Care Manual (Pub. 100-16), Ch. 4 § 40.3
Payment Methods
40.3 – Payment Methods
(Rev. 121, Issued: 04-22-16, Effective: 04-22-16, Implementation: 04-22-16)
The MA plan may not give enrollees money to purchase covered OTC items or drugs but
may, for example: (1) reimburse enrollees for eligible purchases when receipts are
presented; (2) allow enrollees to purchase OTC items through a plan catalog or list; or (3)
issue a debit card that is electronically linked to eligible OTC items and drugs. The plan
may establish a certain dollar amount that each covered enrollee may spend to purchase
covered OTC items and drugs on a per-month or per-year basis. The method (debit card,
mail order etc.) by which enrollees are able to purchase covered OTC items and drugs is
not part of the benefit and may be changed during the year with appropriate prior
notification to enrollees and the MA plan’s account manager to ensure the new method
provides adequate access.