Prime customers now have unlimited access to more than 50 generic medications. Amazon has announced the launch of RxPass, a prescription benefit program that allows subscribers to have generic medication delivered at a reasonable price to their home.

span style=”font weight: 400 Nearly half of adults use two or more medications per day, and many find them difficult to afford,” stated Andy Jassy, Amazon CEO. RxPass, he says, can help Prime members to fill eligible prescriptions for as low as $5 per month.

All prescriptions come with shipping, and there aren’t any hidden fees or markups. Amazon’s latest venture into the healthcare market is RxPass, as it looks to reduce costs in other areas.

Amazon Keeps Pushing into the Healthcare Industry

Since 2018, Amazon has been trying in the healthcare market. It first acquired PillPack, which was later rebranded under Amazon Care. Amazon Care was created to assist individuals in certain states with medical care. Amazon announced that it would be closing the program at the close of 2022.

Amazon then bought One Medical, a primary care provider, for $3.9 billion in July. Amazon also plans to offer mental health support in its primary care services.

Amazon has been offering a benefit for Prime members to get discounts on brand-name and generic prescriptions for some time. RxPass will allow the company to reach customers who have multiple prescriptions and suffer from chronic conditions.

RxPass launches immediately in 42 states and will be available across the country. RxPass may not be available in all states due to specific prescription delivery requirements. Customers who are members of Medicare, Medicaid, or other government programs can’t participate.

Does RxPass Work?

Amazon claims that RxPass will provide generic medication coverage for over 80 conditions, including anxiety and diabetes. This service covers anti-fungal, antibiotics, and anti-inflammatory medication. Amazon’s pharmacy website has a complete list of all available medications.

This service could help people who have to pay out-of pocket for generic prescriptions save money. It won’t help those who spend more on brand-name prescriptions.

Some experts claim that generic drugs represent 20% in prescription drug spending in the U.S. Evercore analyst Elizabeth Anderson stated that Amazon will likely lose money on the service. She called it an “incremental pharmacy experiments” for Amazon.

The Bottom Line

It is unclear if Amazon Care’s new venture will be more successful than Amazon Care. It is unlikely that the service will attract new Prime members. Walgreens, CVS, Walmart and Walgreens are fierce competitors. Other tech companies such as Apple, Google, and Microsoft are spending billions to enter the healthcare market. This makes it more competitive overall.

Vin Gupta (Amazon’s chief medical officer) acknowledged that RxPass is still in its infancy but said RxPass is fundamentally different from other prescription programs. Gupta stated that the healthcare industry needs to change and that Amazon is responding to .”</span.