Amazon Widens RxPass Eligibility To Include Prime Members With Medicare

Amazon (AMZN) is expanding its reach in pharmacy services, with the company announcing Tuesday that it is widening eligibility for its $5 monthly RxPass subscription service to include Prime members with Medicare.

The move could help Amazon grow its reach in pharmacy services, with over 50 million Americans on Medicare. When RxPass was first announced last year, Prime members on government-backed health insurance plans like Medicare and Medicaid were not eligible for the service.

Amazon Says RxPass Could Help Medicare Users Save, Receive Home Deliveries

The e-commerce giant said that a Medicare beneficiary who uses Amazon Pharmacy’s RxPass for just one of the available medications could save at least $70 per year, while also reducing Medicare spending.

RxPass subscriptions can also be delivered to their homes, which could mean more people across the country are taking their medications on schedule, and potentially at a lower cost, Amazon said.

“There are a high number of adults who, whether due to cost, mobility, or simply not having time to collect their medications from the pharmacy, are not adhering to a medication regimen that could be life-saving,” Amazon Pharmacy Chief Medical Officer Dr. Vin Gupta said. “When a patient’s medication arrives regularly at their door, at a price they can afford, we see better long-term health outcomes.”

RxPass Expansion Widens Amazon’s Reach in Pharmacy Services

Amazon first debuted its Pharmacy platform in 2020 with the stated goal of providing prescription medications at lower costs than traditional pharmacies to Amazon Prime members. Offering delivery to a customer’s door, Amazon provided a digital alternative to pharmacy giants like CVS Health (CVS) and Walgreens (WBA).

The Pharmacy RxPass was launched in January 2023, offering unlimited free delivery of a number of generic versions of prescription drugs to Prime members for an additional $5 per month, saying at the time that Prime members could save time and money by having at least two prescriptions filled through RxPass.

Amazon has also expanded its pharmacy offerings in other areas, partnering with pharmaceutical giant Eli Lilly (LLY) earlier this year to ship certain Eli Lilly drugs, including Eli Lilly’s popular weight-loss drugs Mounjaro and Zepbound.

Amazon shares were down about 1.3% at $181.70 in intraday trading Tuesday as of 11:30 a.m. ET, while CVS shares were roughly flat at $61.11 and Walgreens shares rose about 2.6% to $15.54.