Amazon is making strides in the healthcare industry with its recent expansion into medical services. In an effort to increase consumer trust and capture a larger market share, the company announced on November 8 that it would be providing Prime members with access to healthcare through One Medical, a company it owns. This move aligns with Amazon’s strategy of making it easier for people to receive the care they need and improve their overall health outcomes.
The healthcare service offered by Amazon will be available to Prime members for $9 per month or $99 for a year. Families can also take advantage of the benefit by adding up to five memberships at a cost of $6 per month for each additional member or $66 per year. Amazon claims that this pricing structure represents a 50% savings compared to One Medical’s standard costs for healthcare benefits.
In addition to the One Medical program, Amazon also offers Amazon Pharmacy benefits to Prime members. This includes the Rx Pass program, which charges a flat $5 fee for unlimited eligible prescriptions each month. Prime Rx, another prescription savings program, allows members to save up to 80% without insurance at Amazon’s pharmacy and 60,000 pharmacies nationwide.
The introduction of these healthcare services follows Amazon’s acquisition of One Medical earlier this year for $3.9 billion. This move showcases Amazon’s growing interest in establishing itself as a major player in the healthcare industry. However, the Federal Trade Commission (FTC) has expressed concerns about the potential misuse of consumer healthcare data by Amazon. The FTC continues to investigate the acquisition, focusing on possible harms to competition and consumer privacy resulting from Amazon’s control and use of sensitive health information.
While Amazon makes strides in the healthcare industry, established players such as Walgreens Boots Alliance, CVS, and Walmart still dominate the marketplace. Despite recent settlements related to the American opioid crisis, Walgreens remains one of the largest pharmacy chains in the country. Walgreens and CVS have also downplayed the impact of pharmacy worker strikes, emphasizing their commitment to patient safety and continuous engagement with pharmacists.
Overall, Amazon’s entry into the healthcare sector through its One Medical and Amazon Pharmacy offerings demonstrates its commitment to expanding its services and providing accessible, convenient healthcare options to Prime members.
1. How much does Amazon’s healthcare service cost for Prime members?
Amazon offers its healthcare service to Prime members for $9 per month or $99 for a year.
2. Can families take advantage of Amazon’s healthcare service?
Yes, families can add up to five memberships to the service. Each additional member costs $6 per month or $66 per year.
3. What other healthcare benefits does Amazon offer to Prime members?
In addition to the One Medical program, Amazon provides Amazon Pharmacy benefits to Prime members. These include the Rx Pass program, which charges a flat $5 fee for unlimited eligible prescriptions each month. Prime Rx allows members to save up to 80% without insurance at Amazon’s pharmacy and 60,000 pharmacies nationwide.
4. What are the concerns raised by the Federal Trade Commission about Amazon’s acquisition of One Medical?
The FTC is investigating possible harms to competition and consumer privacy resulting from Amazon’s control and use of sensitive health information held by One Medical.
5. How do established players like Walgreens and CVS respond to Amazon’s entry into the healthcare industry?
Walgreens Boots Alliance and CVS, despite recent legal settlements and pharmacy worker strikes, remain at the forefront of the healthcare marketplace. They emphasize their commitment to patient safety and continuous engagement with pharmacists.