Amazon revealed a new benefit for U.S. Prime members on Tuesday, aiming to enhance subscriptions and draw users to its pharmacy services.
Called RxPass, this new addition enables Prime members to access up to 50 generic medications for treating over 80 common chronic conditions like high blood pressure, anxiety, and diabetes. Priced at $5 per month per person, the service includes free delivery.
In recent years, Amazon has deepened its footprint in the healthcare sector. It launched its online pharmacy in 2020 following the acquisition of PillPack in 2018.
Although Amazon Care, its telehealth service, was introduced and later closed, the company announced plans in July to acquire boutique primary care provider One Medical.
Moreover, Amazon offers a Prime prescription savings benefit providing discounts up to 80% on generic drugs and up to 40% on brand-name prescriptions.
Amazon’s expansion of Prime benefits comes as CEO Andy Jassy seeks to streamline costs across the company.
While Amazon plans layoffs affecting around 18,000 employees and has frozen hiring in its corporate workforce while halting some projects, Jassy has reaffirmed Amazon’s commitment to pursuing long-term opportunities, including in healthcare.
The e-commerce giant faces competition in the pharmacy sector from established players such as CVS, Walgreens, and Walmart.
Although Amazon has not disclosed the performance of its online pharmacy since its launch, a report from Morgan Stanley in August indicated that Amazon Pharmacy did not rank highly as a Prime member perk based on user surveys, according to Business Insider.
Vin Gupta, Amazon Pharmacy’s chief medical officer, emphasized the company’s goal of offering a pharmacy experience that differs fundamentally from traditional models.
“This is just the beginning for us, and we recognize the need for change,” Gupta stated in an interview. “Patients nationwide are telling us that, and Amazon is responding.”
Notably, RxPass does not cover insulin or specialty medications, and it is not available for individuals on Medicaid or Medicare. Gupta did not comment on whether Amazon plans to expand the range of medications offered through RxPass in the future.
Gupta noted that approximately 150 million people in the U.S. use at least one of the medications included in the initial RxPass formulary.
