The Center for Medicare Advocacy is releasing a new resource, Medicare Advantage “Flex Cards” and Public Benefits. The issue brief explains how Medicare Advantage flex cards, similar to preloaded debit cards, can impact eligibility for government benefits programs. It also reviews recent guidance on flex cards, as well as the need for additional consumer protections.
CMA became aware of this issue from low-income Connecticut residents whose Medicare Advantage flex cards were causing their rent to increase. CMA learned that some public benefit administrators were counting the dollar amounts on Flex Cards in the income and asset calculations for benefits, including federal rental assistance. Residents of housing for older adults and people with disabilities contacted CMA after they saw their rent increase proportionally to their flex card amounts, even if they had not used their flex cards. These rent increases were devastating for beneficiaries living on very limited incomes.
The Department of Housing and Urban Development released clarifying guidance in January 2025. The agency explained that people in HUD rental-assistance programs who do not use their Flex Card benefits for rent or utilities should not have any portion of their Flex Card amounts counted toward their income. CMA applauded this clarification.
Jan Lincoln, a Glastonbury, Connecticut resident, was distressed when she previously learned the over-the-counter benefits would mean her rent would increase. “This caused much anxiety [over] the cost of such simple items as toothpaste, Tylenol, even off-brand Prilosec and arthritis creams became and have been extremely expensive.” Ms. Lincoln was able to re-enroll in a plan with flex card benefits after learning the over-the-counter credit would not be counted toward her rent calculation. She depends on the flex card’s $65 per quarter over-the-counter benefit to afford everyday items that can be very costly. The issue brief outlines the new HUD guidance, and calls for additional education and guidelines for flex cards. The CMA issue brief is available here.
Contact: Matt Shepard, Communications Director
MShepard@MedicareAdvocacy.org
202-293-5760
(The above was sent as a Press Release on March 19, 2025)
This work was supported in part by Arnold Ventures. CMA maintains full editorial control over all of its policy analysis and communications activities.
March 19, 2025 – K. Kertesz