Amazon rolls out a $5-a-month prescription drug service (with free shipping)
The online retailer has taken yet another step into the health care space, announcing RxPass, an add-on for Prime members that will give them access to generic prescription drugs for more than 80 health conditions.
Amazon Prime members, who pay $139 a year service for free delivery, just got an added benefit: For a flat monthly fee of $5, they will be able to take advantage of a new service called RxPass, which will ship them generic medications for common ailments.
Prime members can add the new service and order commonly prescribed generic medications that treat more than 80 common health conditions, including high blood pressure, anxiety and acid reflux. And, yes, the service includes free delivery.
RxPass, which is available starting today in 42 states (excluding California, Pennsylvania, Louisiana, Texas, Maryland, Minnesota, New Hampshire and Washington), includes over 50 generic drugs, including Atorvastatin (Lipitor) to lower cholesterol, Amlodipine (Norvasc) for high blood pressure, and Naproxen (Naprosyn), an anti-inflammatory drug to treat pain.
“There are 150 million Americans who take one or more of the medications on [the] eligible list that we’re launching with…,” said John Love, vice president of Amazon Pharmacy. “The pharmacy experience largely hasn’t innovated on behalf of customers for decades now … In many cases, customers are still finding out about pricing for their medications at the point they’re getting them, and it’s their responsibility to budget for them and then drive to pick them up.”
“We think this is going to be super valuable for Americans who have a chronic condition or those who might be taking two to three medications,” he added. The program is likely to save customers money on low-cost generic drugs but won’t impact prices for more expensive brand-name drugs, say health care experts.
Amazon, which has been rapidly expanding its reach into the health care space, bought One Medical for $3.9 billion in 2022 (this deal is awaiting regulatory approval). The company also began Amazon Clinic, which aims to treat common conditions like allergies, hair loss and skin conditions, last year. Amazon purchased mail-order pharmacy PillPack in 2018, then rolled out Amazon Pharmacy in 2020 during the pandemic’s early days, when many consumers were avoiding brick-and-mortar pharmacies.
Related: Amazon launches Amazon Clinic, a ‘virtual care storefront’ in 32 states (now live)
Other companies are entering the online pharmacy space. “Shark Tank’s” Mark Cuban launched an online pharmacy earlier this year called Mark Cuban Cost Plus Drug Company. It currently offers approximately 350 unique generic prescription drugs that reflect manufacturer prices plus a 15% fee.
Along with the new subscription service, Amazon Pharmacy also offers a Prime prescription savings benefit, which offers a discount of up to 80% off generic medications and 40% off brand-name medications at more than 60,000 participating pharmacies. Most health insurance programs are accepted, according to Amazon.