This card, with annual fees nearing $300 on a $500 credit limit, could only be used to purchase goods from Horizon’s online store, which offered a limited selection of overpriced items.

Medicare over-the-counter (OTC) cards are prepaid benefit cards that are available with most Medicare Advantage (Part C) plans. They allow users to buy certain household, health, and wellness ...

Horizon charged customers up to $24.99 a month, or about $300 a year, which accounts for more than half of the card's $500 limit in the first year of membership, the CFPB said.

For a person to qualify for a Medicare OTC card, they must be enrolled in a Medicare Advantage (Part C) plan that includes this as a benefit. Learn more.

To qualify for a Medicare OTC card, you must meet the criteria for Medicare coverage and enroll in a Medicare Advantage plan that offers OTC cards as a benefit.