Multi-colored capsule pills in stainless steel tray and on blue background. Pharmacy banner. Pharmaceutical industry. Pharmaceutics. Prescription drugs. Medical and healthcare.

Amazon Introduces RxPass Membership for $5 a Month

Eligible to Prime members in the U.S., the goal of RxPass is to make medications more affordable and accessible.

Amazon is expanding its pharmacy footprint with the introduction of RxPass, a $ 5-a-month membership that helps Prime members save time and money on their prescriptions. The January 23, 2023 announcement on the Amazon blog says that Prime members in the U.S. can get all their eligible generic prescriptions delivered right to their door for a flat fee of $5 per month. The fee is an add-on to the Prime membership, and the $5 is an all-inclusive fee for eligible medications. Customers do not pay per eligible prescription, but a monthly flat fee for all qualifying medications.

Eligible medications treat more than 80 common conditions, including high blood pressure, anxiety, allergies, high cholesterol and diabetes. Amazon says that more than 150 million Americans take one or more of the medications available through RxPass. A full list of eligible medications is available at Amazon Pharmacy online. Medications are listed by name and by condition. Existing Amazon Pharmacy customers can visit their medication list in their pharmacy account, and an RxPass logo will appear next to the eligible medications.

Two Amazon Pharmacy prescription bottles on a kitchen counter next to a glass of water.
Source: Amazon

“Over the last decade as a practicing pulmonologist, I have seen patients with chronic diseases struggle to get access to the basic medications they need to live their lives well. Navigating insurance can be a maze and getting to the pharmacy a burden. Sometimes that has led to poor outcomes: New medications don’t get filled, refills don’t get picked up, and patients suffer,” said Dr. Vin Gupta, chief medical officer, Amazon Pharmacy.

“Aspects of our health care system make what should be easy, difficult. It’s why I feel so fortunate to be a part of the change that Amazon Pharmacy is helping to bring to this space,” Gupta added. “RxPass is our latest effort to help patients save time, save money, and stay healthy.”

Prescriptions must be approved by a member’s physician. RxPass members can have their prescriptions delivered monthly or quarterly. No insurance is needed, and there is no long-term commitment for the RxPass membership program. Members can cancel at any time.

John Love, vice president of Amazon Pharmacy, said an RxPass membership will save the average Prime member about $100 on prescriptions annually, the Wall Street Journal reports.

“We think even if we can just make things a little bit better for a whole lot of people, that’s going to have a resounding impact on health,” Love said.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

To sign up, Prime members can go to the Amazon Pharmacy website or app. There are some restrictions, of course:

  • RxPass members must be Prime members in the U.S. to sign up. Prime membership is currently $139 a year.
  • Prime members cannot sign up for RxPass if they are on Medicare, Medicaid or any other government health care program, but they can still use the Amazon Pharmacy.
  • Prime members must live in an eligible state to sign up for RxPass. It is not available in California, Louisiana, Maryland, Minnesota, New Hampshire, Pennsylvania, Texas, and Washington, but Prime members can still purchase from the Amazon Pharmacy in those states.
  • RxPass is not HSA or FSA eligible.
Source: Amazon

Insider Take

Over the last several years, Amazon has expanded its interest and resources into healthcare. One major move was the launch of Amazon Pharmacy in November 2020. Prime members received free two-day door-to-door delivery of prescription medications and refills in select states. At that time, Amazon said prescription customers without insurance could save 80% off generic medications and 40% off brand name medications. The launch was at the height of the pandemic, when pharmacies were bogged down with orders, and people were locked down by mandate or by choice.

From a customer perspective, we love this. Though my state – where Amazon is headquartered – isn’t in the RxPass membership program, I personally use Amazon Pharmacy, and I continue to be impressed by their service. They have gone from two-day delivery to one-day or same-day delivery, and they are faster and less expensive than my local pharmacies. I can’t get same-day service at the pharmacy down the street from me. At launch, Amazon Pharmacy didn’t offer automatic refills, but they send me regular email reminders when I am due for a refill, and they follow up directly with my doctor if a prescription has expired.

From a membership company perspective, this is another way for Amazon to expand their healthcare services and to grow their Prime membership base. While this service alone may not pay for a Prime membership, it offers Prime members added value, making the membership “stickier” and harder to leave. RxPass may also introduce people to Amazon Pharmacy and Prime membership for the first time.

Takeaways for subscription and membership companies: Love them or hate them, Amazon has set the gold standard for consistently adding value to their Prime membership. At $5 a month, 100,000 RxPass subscribers would yield about $6 million in gross annual revenue. That figure won’t make or break Amazon, but it will give them goodwill with customers who are tired of a broken healthcare system and it will expose prospective members to other Amazon services. The RxPass membership might be a loss leader, but we love the strategy.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

Up Next

Register Now For Email Subscription News Updates!

Search this site

You May Be Interested in: