As enrollment in Medicare Advantage (MA) plans increases steadily (now 54% of Medicare beneficiaries), many older adults are selecting MA or Special Needs Plans (SNPs) offering special supplemental benefits (SSBs) in the form of flexible benefit cards (“flex cards”). The flex cards provide a monthly or annual allowance for beneficiaries to use on a select list of items or services, including over-the-counter medications, groceries, but in some cases, assistance with utilities or rent.

Some older adults are unknowingly jeopardizing their eligibility for various government assistance programs—such as Medicaid, SSI, and federal rental assistance—because there is widespread confusion on whether flex card benefits should be included in income and/or asset calculations. Similarly, PACE participants are giving up access to this integrated service program and in the process, are losing their coordinated services and supports—often finding they are unable to access or utilize the promised flex card benefits.

LeadingAge is seeking policy solutions to clarify and resolve these surprise penalties. To learn more about this issue and LeadingAge’s position, check out our issue brief and additional examples of how older adults are impacted.