Flex cards are like pre-paid debit cards that Medicare beneficiaries can use to purchase durable medical equipment and other qualifying medical expenses. These cards are not a Medicare benefit, but are available on some specific Medicare Advantage (MA) plans offered by private insurance companies. This benefit isn’t a common feature with Part C plans, but many advertisements claim to offer Medicare Flex Cards and savings.

It's important to know what a Medicare Flex Card is, how it works, and pros and cons in order to make the best decision for you and avoid being scammed.

What is a Flex Card?

A Flex Card is like a pre-paid debit card where you can store money. Typically, it’s linked to a flexible spending account (FSA) and can be used to make eligible medical purchases. When you use the card, money is taken out of the account for the purchase, similar to how one would use a credit card.

Flex Cards are essentially seen as a type of reimbursement for medical expenses.

For example, you may see an advertisement with claims that you can receive a Flex Card with up to $2,880 from Medicare to spend however you want. However, most of the time these cards do not have that high of an amount (in 2023 the average was $500) and the funds can only be used on eligible, qualifying items. Typically, this means medically necessary items.

Find a Medicare plan that includes flex spending cards

While a Flex Card is a legitimate benefit, it may not be exactly what is shown in advertisements. It’s important to research different plans to understand all benefits. This one way a Medicare agent can provide valuable advice when comparing your Medicare plan options.

Related reading: Do I Need to Use a Medicare Agent?

What is a flexible spending account (FSA)?

A flexible spending account allows federal employees to save money on eligible health care costs via tax-advantaged spending accounts. When working, you’ll choose the amount of money you want to invest in the FSA (up to the employer-determined limit). The money you contribute isn’t taxed. Then, you can use those funds to make eligible purchases.

If you have money in the account left over you either get two-and-a-half more months to spend it, or you can carry up to $500 over to the next year.

What can I use a Flex Card for?

Flex Cards can only be used for qualifying medical expenses such as durable medical equipment (DME), co-pays or deductibles, prescription drugs or over the counter (OTC) medications, dental, vision, and hearing care, diagnostic devices, or other medically necessary expenses.

Does Medicare offer Flex Cards?

You may see or hear advertisements for Medicare-supplied flex cards from different insurance carriers and health plans However, Medicare does not provide these cards. Instead, they are offered by private insurance companies who then require you to join their Medicare Advantage plan in order to access the benefit.

To be eligible for a Flex Card, you must be a member of a participating plan. This means you must live within the service area of a plan that offers a Flex Card and enroll during a Medicare enrollment period such as your Initial Enrollment Period or annual enrollment.

Pros and Cons of Flex Cards

The primary advantage to Flex Cards is you essentially get a pre-paid debit card to make eligible purchases depending on your plan. The card is essentially a tool to administer supplemental benefits and/or to reduce enrollee cost sharing on covered benefits.

However, these cards are only offered by Medicare Advantage plans, not Original Medicare, and very few MA plans actually offer them. Additionally, the average amount on these cards is $500 (compared to the $2,880 often advertised).

These cards are not just free money that seniors can get simply for being seniors. Instead, they are tactics designed to influence seniors to switch to specific MA plans.

Note that Medicare Supplement plans, or Medigap, also do not include Flex Card benefits. This is because Medigap plans are designed to help beneficiaries save money on out-of-pocket costs, so the cards aren’t a necessary benefit. You also cannot enroll in both a Medigap and a Medicare Advantage plan.

How to avoid Medicare Flex Card scams

It’s important to remember that only certain Medicare Advantage plans offer Flex Card benefits, but you may see an advertisement or be contacted by someone trying to get you to enroll in a plan with a Flex Card. If this happens:

• Hang up immediately.
• Do not provide any personal information such as your name, address, Social Security number, Medicare information, bank account information, etc.

Some private insurance companies may use deceitful marketing tactics to try to convince you to enroll in their Medicare Advantage plan. However, it’s important to do your research and choose a plan that’s right for you based on other factors such as coverage, provider network, cost, and benefits. Do not make a decision like this without researching and comparing your options.

You can start your research with our Find a Plan tool. Just enter your zip code to begin reviewing Medicare plans in your area.

Additional resources

ClearMatch Medicare: Find a Medicare Plan