**KEY TAKEAWAYS**
Amazon announced on Tuesday that it is expanding the eligibility for its $5 monthly Pharmacy RxPass subscription service to include Prime members who have Medicare.
This expansion could significantly broaden Amazon's influence in pharmacy services, as over 50 million Americans are on Medicare.
When RxPass was initially launched last year, Prime members on government-supported plans like Medicare and Medicaid were not eligible.
**Amazon Expands RxPass Eligibility to Medicare Prime Members**
Amazon is enhancing its presence in the pharmacy sector, revealing on Tuesday that it will extend eligibility for its $5 monthly RxPass subscription service to Prime members with Medicare. This strategic move could help Amazon expand its pharmacy services, targeting over 50 million Americans enrolled in Medicare. Initially, when RxPass was launched last year, Prime members with government-backed insurance plans like Medicare and Medicaid were not eligible for the service.
**Amazon Highlights Savings and Home Deliveries for Medicare Users with RxPass**
The e-commerce giant stated that Medicare beneficiaries using Amazon Pharmacy's RxPass for just one medication could save at least $70 annually, while also helping to reduce Medicare expenses. RxPass subscriptions offer home delivery, potentially ensuring more people adhere to their medication schedules at a reduced cost, according to Amazon.
“There are many adults who, due to cost, mobility issues, or lack of time, do not adhere to a medication regimen that could be life-saving,” said Dr. Vin Gupta, Amazon Pharmacy Chief Medical Officer. “When medications are delivered regularly to a patient's door at an affordable price, we observe better long-term health outcomes.”
**RxPass Expansion Increases Amazon's Pharmacy Services Reach**
Amazon introduced its Pharmacy platform in 2020 with the aim of offering prescription medications at lower prices than traditional pharmacies to Amazon Prime members. By providing delivery directly to customers' doors, Amazon positioned itself as a digital alternative to established pharmacy chains like CVS Health and Walgreens.
Launched in January 2023, the Pharmacy RxPass offers unlimited free delivery of several generic prescription drugs to Prime members for an additional $5 per month. At launch, Amazon claimed that Prime members could save both time and money by filling at least two prescriptions through RxPass.
Additionally, Amazon has expanded its pharmacy services by partnering with pharmaceutical company Eli Lilly to ship certain Eli Lilly medications, including popular weight-loss drugs Mounjaro and Zepbound.
As of 11:30 a.m. ET on Tuesday, Amazon shares were down approximately 1.3% at $181.70, CVS shares remained relatively unchanged at $61.11, and Walgreens shares increased by about 2.6% to $15.54.
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