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(Reuters) – Amazon.com (NASDAQ:)’s pharmacy unit said on Tuesday it is expanding eligibility for its monthly subscription service, which covers a range of generic drugs, to those enrolled in government-backed Medicare insurance plans.
Amazon has been luring customers away from more established pharmacies like CVS and Walgreens since launching its drugstore unit in 2020.
With the expansion, Amazon said more than 50 million additional people will be eligible to use the service, known as RxPass, which launched for Prime members in the US in January 2023 and is priced at $5 per month.
A subscription provides access to 60 eligible generic medications, 24/7 access to a pharmacist, and free treatment delivery for Prime members. Through RxPass, Amazon Pharmacy offers up to 80% off the cost of generic drugs and up to 40% off the cost of brand name drugs to members with and without insurance.
U.S. spending on Medicare for people over 65 and the disabled is expected to grow 8.4% to more than a trillion in 2023, according to federal government data.
“Programs like RxPass help reduce costs 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.
Amazon said RxPass could help reduce Medicare spending by nearly $2 billion annually and help lower direct costs for seniors.
Medicare plan members who need one RxPass medication can save about $70 a year, while those who take two or more medications can save more, the company said.
