Amazon.com's pharmacy unit has expanded eligibility for its monthly subscription service to those enrolled in Medicare insurance plans. This service covers a range of generic drugs.
Amazon launched its pharmacy unit in 2020, and followed by the monthly subscription service, known as RxPass, in January 2023 for U.S. Prime members which is priced at $5.00 per month. With the expansion, Amazon said over 50 million more people will be eligible to use the service.
“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,” said John Love, Vice President of Amazon Pharmacy. “Many people don’t realize that even if you have great insurance, you can still save on select medications by using programs like RxPass. The overall cost of medications can be lower, and that’s not even factoring in the time and effort saved from not having to drive to a pharmacy or stand in line.”
The subscription provides access to approximately 60 eligible generic medications as well as 24/7 access to a pharmacist and free delivery of treatments for Prime members. Through RxPass, Amazon Pharmacy offers up to 80% off the cost of generics and up to 40% off the cost of brand name medicines for members with or without insurance. According to Amazon, if all Medicare beneficiaries transitioned their eligible medications to RxPass, Medicare spending would be reduced by nearly $2 billion, and customer out-of-pocket spending would also decrease. A spokesperson from Amazon said their economists analyzed government data to find the cost of equivalent medications through Medicare to calculate that figure.
