Understanding the 'Flex Card'
Often referred to as a 'flex card' or 'spending card,' this prepaid debit card is a popular supplemental benefit offered by some private insurance companies through their Medicare Advantage (Part C) plans. It is important to know that this is not a benefit provided by the federal government or Original Medicare. Instead, private insurers use rebates from Medicare to fund extra benefits, including these cards, to make their plans more attractive to beneficiaries.
These cards come pre-loaded with a set amount of money, which can be reloaded monthly, quarterly, or annually, depending on the plan. The specific amount and the approved categories of expenses are determined entirely by the insurance carrier.
What can a prepaid spending card cover?
Since the benefits are not standardized, the eligible purchases vary widely based on your specific Medicare Advantage plan. Some plans offer a broad range of items, while others are more limited. Common uses typically include:
- Over-the-Counter (OTC) items: This is one of the most common uses, covering products such as non-prescription medications, first-aid supplies, vitamins, and dental hygiene products.
- Groceries: Many plans include a monthly or quarterly allowance for healthy food purchases at participating grocery stores. This can be a significant benefit for seniors looking to stretch their budget.
- Dental, Vision, and Hearing: Some cards help pay for out-of-pocket costs related to dental cleanings, vision exams, glasses, contact lenses, and hearing aids.
- Utilities: Some specific plans, particularly those for individuals with chronic illnesses, may allow the card to be used for utility bills like gas, electric, or water.
- Medical Supplies and Equipment: Expenses for assistive devices, such as walkers, canes, shower stools, and other durable medical equipment, may be covered.
- Transportation: Some plans use the card to cover transportation costs for getting to and from medical appointments.
How to get a prepaid spending card
To obtain a prepaid spending card, you must be enrolled in a Medicare Advantage (Part C) plan that offers it as a benefit. The steps typically involve:
- Check eligibility: You must first be eligible for Original Medicare (Parts A and B). Most people become eligible at age 65, while others qualify based on disability or specific medical conditions.
- Find a qualifying plan: Use the official Medicare Plan Finder tool on Medicare.gov or work with a licensed insurance agent to find Medicare Advantage plans in your area that include this benefit.
- Enroll in a plan: You can enroll during the Annual Open Enrollment Period (October 15 – December 7) or during a Special Enrollment Period if you qualify.
- Activate the card: Once enrolled and you receive your card, you will likely need to activate it online or over the phone to start using it.
It is crucial to compare plans carefully. While a spending card is an attractive perk, the overall plan coverage for doctors, specialists, and prescriptions should be the primary factor in your decision.
Comparison: Flex Cards vs. Original Medicare
| Feature | Prepaid Spending Card (Flex Card) | Original Medicare (Parts A & B) |
|---|---|---|
| Availability | Available only through specific Medicare Advantage (Part C) plans from private insurers. | Standard federal program available to most people aged 65+ or with qualifying disabilities. |
| Source of Funds | Funded by the private insurance company using rebates from Medicare. | Funded by federal payroll taxes and other federal revenue. |
| Covered Expenses | Varies widely by plan but can include non-medical items like groceries, utilities, and OTC products. | Covers hospital care (Part A) and outpatient care (Part B). Does not cover non-medical items. |
| Spending Rules | Strict rules on what can be purchased and where the card can be used. | Does not offer a spending card benefit. |
| Beneficiary Action | Must enroll in a specific Medicare Advantage plan and may need to activate the card. | Automatically enrolls most eligible individuals in Part A; Part B enrollment is optional. |
| Expiration | Funds may expire monthly or annually if not used, depending on the plan. | No expiration of benefits once coverage is established. |
Avoiding flex card scams
Unfortunately, the popularity of flex cards has led to a rise in scams targeting seniors. It is essential to be aware of the red flags to protect yourself.
- Medicare does not issue flex cards. Any unsolicited calls claiming to be from Medicare offering a free flex card are fraudulent.
- Beware of unsolicited contact. A legitimate flex card is a benefit of a specific plan you have chosen, and you won't be contacted out of the blue by an external party.
- Never give personal information. Legitimate Medicare Advantage plans will not call and ask for your Social Security, Medicare, or bank account numbers.
- Be skeptical of promises. Scammers may exaggerate the card's value or claim it can be used for anything. Legitimate flex cards have strict spending rules and limits.
Conclusion
A prepaid spending card, or flex card, for seniors on Medicare is a valuable supplemental benefit offered exclusively through some Medicare Advantage plans. It provides financial assistance for health and wellness expenses not covered by Original Medicare. However, its benefits and rules are highly specific to the plan, and you must be cautious of scams promising unrealistic perks. When considering this benefit, it's vital to research the plan's overall coverage and network of providers to ensure it meets all your healthcare needs, not just offers an attractive spending card.
