Amazon.com Inc's (NASDAQ: AMZN) Prime RxPass subscription service has now expanded to over 50 million Medicare beneficiaries, enhancing affordable access to medications for a broader audience.
This rollout promises significant savings and convenience, emphasizing the program's alignment with customer-centric healthcare solutions.
Launched on Tuesday, RxPass now offers its services to a vast demographic of Medicare recipients, aiming to streamline the purchasing of medicines and support better health management.
Medicare beneficiaries utilizing RxPass for their medication needs could save an average of $70 annually for those on a single medication, with greater savings for those requiring multiple prescriptions.
Overall, this could lead to a nearly $2 billion reduction in Medicare spending if all eligible beneficiaries switch to RxPass.
"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," stated John Love, Vice President of Amazon Pharmacy.
Amazon Pharmacy, acting as a digital pharmacy, offers transparent pricing and round-the-clock access to pharmacists. The Prime-associated savings plan, RxPass, provides an alternative to traditional insurance coverage, offering significant discounts on medications.
With a substantial portion of Americans facing challenges like "pharmacy deserts," mobility issues, or high medication costs, RxPass aims to alleviate these barriers, potentially improving long-term health outcomes for millions.
Since its inception in 2020, Amazon Pharmacy has been actively working to divert customers from established competitors like CVS Health Corp (NYSE: CVS) and Walgreens Boots Alliance Inc (NASDAQ: WBA), reported Reuters.
The RxPass program, priced at $5 per month, includes 60 generic medications, round-the-clock pharmacist access, and free delivery, making it an attractive alternative to traditional pharmacy offerings.
Amazon stock has gained more than 46% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY) and Vanguard Consumer Discretionary ETF (NYSE: VCR).
Price Action: AMZN shares are trading lower by 0.38% at $183.36 at last check Tuesday.