Which plans still let you use credits for utilities in 2026, and what changed?

Quick Summary

Some Medicare Advantage plans still offer a benefit that can help pay utility bills in 2026, but it’s not as common as it used to feel. You’re most likely to see it in Special Needs Plans (SNPs), and it’s usually only for certain members who meet health-related requirements (often called an SSBCI benefit).

A big reason people are noticing changes is that a Medicare program that let some plans offer these credits more broadly ended after 2025. So for 2026, some plans reduced the benefit, changed the rules, or removed it entirely.

Introduction

A credit that helps pay for gas, electric, water, or other utilities can make a real difference when you’re living on a fixed income, managing chronic illness, or supporting someone who needs stable heat, cooling, refrigeration for medications, or powered medical equipment.

The key detail for 2026 is this: utility credits aren’t a standard Medicare benefit. When they exist, they’re typically an extra plan benefit, and extra benefits can change every year, even if your plan name stays the same.

What “credits for utilities” usually mean

When people say “credits for utilities,” they are usually describing one of these:

A plan allowance you can use toward utility bills

Some Medicare Advantage plans offer a set dollar amount (for example, monthly or quarterly) that can be used for approved expenses. In many cases, the allowance is administered through a spending card or flex card, and the rules for how you can use it depend on the plan and the vendor.

A specific SSBCI benefit tied to “general supports for living”

CMS guidance specifically allows Medicare Advantage plans, when offering SSBCI, to include subsidies for utilities such as gas, electric, and water as part of “general supports for living,” as long as the plan reasonably expects the benefit will improve or maintain health or overall function for eligible enrollees.

Important practical details to know

These credits are often misunderstood, so it helps to keep a few basics in mind:

• It usually isn’t cash. It may be limited to specific payment methods, vendors, or categories.
• The allowance may expire. Some plans structure the benefit as “use it or lose it” monthly, while others may allow rollovers until the end of the year.
• Not everyone in the plan automatically qualifies when the benefit is offered as SSBCI. Eligibility is often limited to a subset of members who meet the plan’s criteria for being “chronically ill” under the SSBCI rules.

Which plans still let you use credits for utilities in 2026

In 2026, utility credits are primarily found in Medicare Advantage plans, especially those offering SSBCI benefits described as “general supports for living (such as housing and utilities).”

Most likely in 2026: Medicare Advantage Special Needs Plans (SNPs)

If you’re trying to find a plan with a utility credit in 2026, SNPs are the most likely place to see it.

KFF’s review of 2026 plan benefit data found that 72% of SNPs offer SSBCI “general supports for living, such as housing and utilities.”

Medicare describes SNPs as Medicare Advantage plans designed for people who have certain chronic conditions, specific health care needs, or who also have Medicaid. Medicare.gov lists three SNP types:

• Dual Eligible SNP (D-SNP)
• Chronic Condition SNP (C-SNP)
• Institutional SNP (I-SNP)

Even within SNPs, the benefit can vary by county and plan design, so you still need to confirm what’s included in your specific area.

Less common, but possible: Medicare Advantage plans for general enrollment

Utility credits can also appear in Medicare Advantage plans that are open for general enrollment, but they are much less common than in SNPs.

KFF reported that in 2026, 8% of individual Medicare Advantage plans (plans generally available for general enrollment, excluding SNPs) offer SSBCI “general supports for living, such as housing and utilities.”

Plans that generally do not offer utility credits

If you’re in one of the following, it’s unlikely you’ll have a “utility credit” benefit because these are not structured to offer that kind of extra allowance:

• Original Medicare (Part A and Part B)
• Medigap (Medicare Supplement Insurance)
• Standalone Part D prescription drug plans

Extra benefits like allowances and SSBCI benefits are a feature of Medicare Advantage (Part C) plan design.

Who can qualify for a utility credit when it’s offered as SSBCI

Many 2026 utility credits fall under SSBCI, which has a specific eligibility framework.

CMS guidance explains that to be considered “chronically ill” for SSBCI, an enrollee must meet all three parts of the statutory definition:

• You have one or more medically complex chronic conditions that are life-threatening or significantly limit health or function
• You have a high risk of hospitalization or other adverse outcomes
• You require intensive care coordination

CMS also clarifies an important point: social risk factors can be used to help refine eligibility, but they can’t be the only reason someone is considered eligible for SSBCI.

What this means for you in 2026:

• If you previously received a utility allowance mainly because of income or socioeconomic status, you may need to re-check eligibility.
• If your plan offers the benefit as SSBCI, you may need to be enrolled in care management or meet additional plan-defined criteria.

What changed for 2026, and why people are noticing differences

There are two big reasons utility credits look different in 2026.

The VBID model ended after the 2025 plan year

In prior years, some Medicare Advantage plans participated in CMS’s Medicare Advantage Value-Based Insurance Design (VBID) Model.

KFF explains that VBID allowed participating plans to offer certain non-primarily health-related benefits using eligibility criteria that differed from SSBCI, including offering them based on socioeconomic status. KFF also notes the model was terminated at the end of the 2025 plan year.

CMS’s VBID end-of-model FAQ confirms:

• CMS is terminating the VBID model at the end of 2025
• The reason cited is substantial and unmitigable costs to Medicare trust funds, with reported excess costs in 2021 and 2022

If your “utility credit” was connected to VBID participation, you may see it reduced, redesigned, or removed in 2026 unless your plan restructured it under SSBCI or other supplemental benefit rules.

SSBCI is still allowed, but CMS added stronger expectations for evidence and documentation

SSBCI didn’t go away in 2026. CMS continues to allow SSBCI benefits, including utility subsidies as part of “general supports for living,” when the plan reasonably expects the benefit will improve or maintain health or function.

At the same time, CMS finalized requirements (in the Contract Year 2025 final rule) that Medicare Advantage plans must be prepared to support SSBCI offerings with research when they submit bids and must maintain bibliographies of relevant studies or data showing the SSBCI meets the legal threshold.

Practical impact in 2026:

• Some plans may continue utility credits but make eligibility narrower or the documentation clearer.
• Some plans may shift from broader “spending accounts” to more targeted benefits that are easier to justify and administer under SSBCI rules.

Overall, many extra benefits declined from 2025 to 2026

Even outside utilities, KFF reports that the share of plans offering several supplemental benefits declined in 2026 compared with 2025 (for example, OTC allowances, meals, transportation, and remote access technologies).

This context matters because a “utility credit” is often packaged with other benefits (like food and produce) into a combined allowance, and changes to the overall benefit structure can affect what you can spend on utilities.

How to check whether you can use a 2026 credit for utilities

If you are managing coverage for yourself or someone you care for, you can usually get clarity with a consistent process.

Step 1: Identify what kind of Medicare coverage you have

If you’re not sure whether you’re in Medicare Advantage vs Original Medicare, check your plan card and plan name. Medicare’s “Understanding Medicare Advantage Plans” guide explains how Medicare Advantage works and emphasizes that plans can include supplemental benefits that can change year to year.

Step 2: Look for the right terms in your plan documents

In your plan’s Evidence of Coverage and Summary of Benefits, look for:

• “SSBCI”
• “Special Supplemental Benefits for the Chronically Ill”
• “General supports for living”
• “Housing support”
• “Utilities,” “utility allowance,” or “utility subsidy”
• “Flex card,” “spending card,” or “allowance”

Step 3: Ask the plan targeted questions that confirm the rules

When you call the plan’s Member Services, these questions usually get you the most useful answer:

• Is the utility benefit offered as an SSBCI benefit, or as a general supplemental benefit?
• What makes someone eligible in 2026, and do I need to enroll in care management?
• Which utilities are allowed (electric, gas, water, heating fuel), and are there limits per month or per year?
• How do I use it (flex card, reimbursement, direct payment), and does unused money expire?
• If I’m denied, what is the plan’s process for requesting coverage or appealing? (CMS notes that coverage requests for benefits can fall under organization determinations and appeals processes.)

Step 4: If you live in HUD-assisted housing, check how it affects your rent calculation

This is easy to miss, but important.

HUD issued an FAQ explaining that when Medicare Advantage supplemental benefits are used to pay for rent and utilities, that support must be included in income calculations for HUD rental assistance purposes. The document also discusses flex cards and clarifies that other flex-card expenditures generally aren’t treated the same way unless they are used for rent/utilities.

If you receive HUD rental assistance, it may help to talk with your housing provider before you start using a plan benefit specifically for utilities.

Why stable utilities can matter for health

Even though a utility credit is a financial benefit, it can connect directly to health and safety.

• CDC notes that power outages can be life-threatening for people who depend on home-use medical devices and recommends planning for safe heating/cooling alternatives and backup power.
• Peer-reviewed research has linked energy insecurity and medical device dependence with health and healthcare needs among Medicare beneficiaries, supporting why “general supports for living” may be relevant for health and function.

If you or a loved one relies on powered medical equipment, refrigeration for medications, or safe indoor temperatures, it’s reasonable to treat utility stability as part of your overall care planning.

If your utility credit disappeared in 2026

If you had a utility benefit in 2025 and it’s gone in 2026, you still have options to explore:

• Ask the plan whether the benefit was tied to VBID participation and whether there is a comparable SSBCI option for 2026.
• Consider whether you qualify for a different plan type (especially an SNP) if you meet eligibility requirements.
• Look into government utility assistance programs like LIHEAP and weatherization resources (often administered locally with state-specific eligibility).

If you need help organizing next steps, you may also find it useful to review Understood Care’s guidance on financial support and bill prioritization:

• https://understoodcare.com/uc-articles/financial-help
• https://understoodcare.com/uc-articles/how-to-prioritize-bills-when-you-cannot-pay-everything

How an advocate can help

If you’re comparing plans for 2026, it can help to have someone walk through the fine print with you, especially when a benefit is:

• Offered only to a subset of members (like SSBCI)
• Administered through a spending card with category restrictions
• Changing from year to year

An advocate can also help you prepare the questions that matter most so you can confirm whether a “utility credit” is real, usable for your situation, and worth choosing a plan for.

Learn more:

• https://understoodcare.com/uc-articles/how-advocates-help-you-find-your-best-health-plan
• https://understoodcare.com/uc-articles/deep-plan-by-plan-comparisons-of-grocery-benefits
• https://understoodcare.com/care-types/analyze-bills‍

FAQ

• Which Medicare plans offer a utility allowance in 2026?
  Utility allowances are most commonly found in some Medicare Advantage Special Needs Plans (SNPs) and less commonly in Medicare Advantage plans open for general enrollment.
• Are utility credits part of Original Medicare?
  No. Utility credits are not a standard Original Medicare benefit. When they exist, they are typically an extra Medicare Advantage plan benefit.
• What does SSBCI mean for utility credits in 2026?
  SSBCI stands for Special Supplemental Benefits for the Chronically Ill. In 2026, many utility-related benefits are offered under SSBCI and may be limited to members who meet the plan’s chronic illness criteria.
• Did Medicare stop utility credits in 2026?
  Not entirely. Some plans still offer them, but a CMS model (VBID) that expanded how some plans offered non-medical benefits ended after 2025, which contributed to changes in 2026 offerings.
• Do Medicare Advantage flex cards still cover utilities in 2026?
  Some do, but not all. Many plans use flex cards for combined allowances, and the categories allowed (including utilities) depend on the plan and local availability.
• If I get housing assistance, will using a Medicare utility credit affect my rent?
  It might. If Medicare Advantage supplemental benefits are used specifically for rent or utilities, HUD guidance indicates that support may be included in income calculations for HUD-assisted housing.

References

• https://www.kff.org/medicare/medicare-advantage-2026-spotlight-a-first-look-at-plan-premiums-and-benefits/
• https://www.cms.gov/medicare/health-plans/healthplansgeninfo/downloads/supplemental_benefits_chronically_ill_hpms_042419.pdf
• https://www.cms.gov/priorities/innovation/innovation-models/medicare-advantage-value-based-insurance-design-model-frequently-asked-questions-about-end-model
• https://www.cms.gov/newsroom/fact-sheets/contract-year-2025-medicare-advantage-and-part-d-final-rule-cms-4205-f
• https://www.medicare.gov/publications/12026-understanding-medicare-advantage-plans.pdf
• https://www.medicare.gov/health-drug-plans/health-plans/your-health-plan-options/SNP
• https://www.huduser.gov/portal/portal/sites/default/files/pdf/FAQ-Medicare-Advantage-Supplemental-Benefits.pdf
• https://www.cdc.gov/prepare-your-health/take-action/power-sources.html
• https://pmc.ncbi.nlm.nih.gov/articles/PMC11932328/
• https://www.usa.gov/help-with-energy-bills‍