Amazon Pharmacy expands prescription service to 50Mn Medicare enrollees
WASHINGTON, UNITED STATES — Amazon Pharmacy, the online pharmacy subsidiary of e-commerce giant Amazon, announced that it will expand its RxPass subscription service to include enrollees of Medicare insurance plans.
This move will make the service available to more than 50 million Medicare beneficiaries, providing them with an affordable and convenient way to access their medications.
RxPass: Affordable prescription service per month
Initially launched in January 2023 for Amazon Prime members, Amazon Pharmacy’s subscription prescription service RxPass aims to simplify the prescription process and reduce costs for its users.
For a monthly fee of $5, RxPass allows customers to fill as many prescriptions as they need from a list of approximately 50 generic medications.
These medications are delivered directly to the customers’ doors, and the service includes 24/7 access to a pharmacist.
Potential savings for Medicare enrollees
According to Amazon, a Medicare enrollee who takes at least one medication from the RxPass list could save about $70 per year.
If all Medicare beneficiaries were to transfer their eligible medications to RxPass, it could potentially reduce Medicare spending by approximately $2 billion annually.
Amazon Pharmacy Vice President John Love emphasized the program’s benefits, stating, “Programs like RxPass help reduce cost while increasing convenience for caregivers and customers of all ages, which is shown to improve medication adherence and support better health outcomes.”
Competing with major pharmacy chains
This expansion is part of Amazon’s broader strategy to attract customers from established pharmacy chains such as Walgreens, CVS, and Rite Aid.
By offering a cost-effective and convenient prescription service, Amazon Pharmacy aims to become a significant player in the pharmaceutical market.
Background and additional benefits
Amazon launched its online pharmacy in November 2020, providing customers with the option to purchase generic prescription drugs at discounts of up to 80% and brand-name drugs at discounts of up to 40%.
The expansion of RxPass to Medicare enrollees is expected to further enhance the accessibility and affordability of medications for millions of Americans.
Medicare is a federal health insurance program that covers approximately 67.3 million Americans, primarily individuals aged 65 or older and some younger people with certain disabilities.
The inclusion of Medicare enrollees in the RxPass program is a significant step towards improving healthcare access and reducing prescription costs for a large segment of the population.
By expanding RxPass to Medicare beneficiaries, Amazon Pharmacy continues to innovate and disrupt the traditional pharmacy model, offering a modern solution to medication management and cost reduction.
