Amazon's pharmacy department announced this Tuesday that its monthly subscription service, covering various generic drugs, is now extended to users of government-backed Medicare insurance plans.
Since launching its pharmacy department in 2020, Amazon has been striving to attract customers from established pharmacies like CVS and Walgreens.
With the business expansion, Amazon stated that over 50 million people are eligible to use the service called RxPass. It was first introduced to U.S. Prime members in January 2023, with a monthly fee of $5.
This subscription service offers users 60 eligible generic medications, 24/7 pharmacist services, and free delivery for Prime members. Through RxPass, Amazon Pharmacy provides up to 80% discounts on generic drugs and up to 40% discounts on brand-name drugs, regardless of whether members have insurance.
According to federal government data, Medicare spending for seniors aged 65 and older and disabled individuals is expected to grow 8.4% in 2023, exceeding $1 trillion.
John Love, Vice President of Amazon Pharmacy, stated: "Programs like RxPass can lower costs while increasing convenience for caregivers and users of all ages. This has proven to improve medication adherence and support better health outcomes."
Amazon claims RxPass is expected to save Medicare nearly $2 billion annually and reduce out-of-pocket costs for seniors.
Amazon also noted that Medicare plan members who need RxPass medications can save about $70 per year, with those requiring two or more medications saving even more.
