Amazon launches RxPass, a $5 per Month Prescription Subscription

In their latest foray into healthcare, Amazon Pharmacy has launched RxPass, an unlimited prescription service for Amazon Prime members, offering generic drugs for a flat fee of $5 per month. Conditions treated include allergies, high blood pressure, dementia, mental health, and skin conditions. 

Why it's notable:

• Amazon has been expanding into the healthcare space in recent years. In 2020, the company launched Amazon Pharmacy, an online medication and prescription delivery service, after acquiring PillPack in 2018. Most recently, they announced the Amazon Clinic, a direct-to-consumer virtual health service, connecting consumers with licensed clinicians to diagnose, treat, and prescribe medications for a range of common conditions. 

• RxPass will only be available to Amazon Prime members. The service won’t accept insurance and those covered by Medicaid and medicare are not eligible. Currently, RxPass is available in 42 states and prescriptions are unlimited to subscribers for more than 50 generic medications. 

Industry Implications:

• The number of medications taken in the U.S. has been increasing. 70% of consumers take at least one prescription medication per day, with high costs of medications and accessibility a challenge to many, especially for those taking multiple medications. Amazon is pitching RxPass as a cost and time-saving mechanism for those with several chronic conditions. However, limitations may exclude a significant proportion of Americans, based on geography or health coverage. 

• The majority of U.S. households have an Amazon Prime subscription, with that number estimated to grow in the coming years. Pharmacy retailers and online pharmacies will now have to compete with Amazon Prime's growing user base, as well as the significant cost reductions and time savings which RxPass is claiming to offer.