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Amazon Expands Prescription Offering to Medicare Members

Amazon Pharmacy, RxPass

Amazon said it has expanded its prescription drug program to include Medicare beneficiaries.

Beginning Tuesday (June 18), more than 50 million enrollees in the government health insurance program are eligible for Amazon’s RxPass, a Prime member benefit that allows for affordable access to common medications, free delivery each month and the ability to connect with a pharmacist around the clock.

The company said Medicare beneficiaries who take at least one medication available through RxPass could save approximately $70 per year, and a beneficiary who takes two or more medications could save even more. If every Medicare beneficiary was to use RxPass, Medicare spending would be reduced by close to $2 billion, while customer out-of-pocket spending would decrease as well, Amazon added.

“Programs like RxPass help reduce cost, 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.

PYMNTS CEO Karen Webster examined the importance of proper medication adherence earlier this week in a conversation with Rick Ratliff, CEO of MedAdvisor Solutions, a digital pharmacy solutions provider.

“About 18-20% of individuals that are new to [certain] prescriptions don’t even fill it to begin with,” he said. “And then those that do fill the medication, about 20-25% of those individuals fall off after the first or second prescription.”

Poor adherence can trigger worsening health conditions, and lead to increased healthcare costs and preventable hospitalizations.

To address this issue, MedAdvisor Solutions has built a machine learning and artificial intelligence (AI) platform known as THRiV, which helps determine which patients are at risk of non-adherence and optimizes communication strategies to encourage them to better manage their medications.

As noted here in March, the efforts of these companies are part of an ongoing transformation in the health sector.

“One of the most significant advancements lie in the integration of digital tools and solutions aimed at streamlining medication access and delivery,” that report said. “This shift holds promise, particularly for older adults seeking convenience, accessibility and affordability in their healthcare journey.”

At the time, Amazon Pharmacy had just expanded its same-day delivery service for prescription medication to encompass New York City and the greater Los Angeles area, adding to its coverage in five cities.