Millions of older Americans enrolled in Medicare Advantage are seeing some of the extra benefits attached to their plans reduced or removed as insurers respond to higher medical costs and changes in federal payments. Dental, vision and hearing coverage remain widely available, but other benefits such as over-the-counter allowances, meal programs, transportation assistance and fitness services are becoming less common.
The changes matter because more than half of Medicare beneficiaries receive coverage through Medicare Advantage plans, and some depend on supplemental benefits to reduce everyday expenses or help them access care. According to Newsweek, insurers are focusing many of their reductions on optional extras rather than core medical coverage as they try to preserve low premiums while managing financial pressure.
Supplemental Benefits Are Becoming Less Common
Over-the-counter benefits are still widely offered, but their availability has declined. According to KFF data cited by Newsweek, OTC benefits are available in 66 percent of Medicare Advantage plans in 2026, compared with 73 percent in 2025. Meal benefits, transportation assistance and other supplemental services have also become less common in some plans.
Michael Ryan, founder of MichaelRyanMoney.com, told Newsweek that insurers expanded benefits such as OTC cards, grocery allowances and transportation services when federal payments were more favorable. He said these benefits are now among the first areas insurers can reduce because legally required coverage is not affected in the same way.
Plan availability has also narrowed. The average Medicare beneficiary can choose from 32 Medicare Advantage prescription drug plans in 2026, down from 34 in 2025. Nationally, the number of Medicare Advantage plans available for individual enrollment has fallen 9 percent from the previous year.
KFF also found that 13 percent of people enrolled in Medicare Advantage prescription drug plans were affected by a plan termination heading into 2026. That share was roughly twice the level recorded the year before.
Dental, vision and hearing coverage remain much more stable. KFF described these benefits as being offered by “virtually all” Medicare Advantage plans in 2026, broadly matching previous years.
Higher Medical Costs Are Putting Pressure on Insurers
Experts cited by Newsweek said the reductions reflect a combination of rising healthcare costs and changes in federal payment rules. Rather than removing core medical coverage, insurers are trimming benefits that previously helped distinguish Medicare Advantage plans from traditional Medicare.
Drew Powers, founder of Powers Financial Group, said companies offering Medicare Advantage operate as for-profit insurers and are likely to maintain additional benefits only when those benefits remain financially sustainable. When government payments fall below expectations, he said, optional benefits provide an area where insurers can reduce spending.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, similarly told Newsweek that insurers are making choices aimed at preserving low premiums and core medical coverage while reducing supplemental perks. He noted that these extras can still represent meaningful savings for seniors.
Beneficiaries may therefore find that familiar plan features change even when a plan’s overall appearance remains similar. Ryan said the details can be easy to miss because they are often contained in an Annual Notice of Change letter, where reductions in allowances or services may not be immediately obvious.
