Amazon’s announcement of a prescription subscription service that charges a flat monthly fee instead of offering discounts on each prescription fill represents the retail giant’s latest foray into the health care space.
Amazon’s latest foray into the health care realm is the announcement of RxPass, a subscription service that will allow members to receive as many prescriptions as they need from a prespecified list of generic medications for $5 a month.
According to Amazon’s announcement, the service is only available to members of Amazon Prime, which costs $139 per year. By adding on the $5 monthly RxPass fee, subscribers will be able to receive all their eligible medications delivered to their door for free. Its flat-fee model is in contrast to pharmacy “savings club” programs, which generally offer discounts per fill of certain generics for a yearly membership fee. Amazon Pharmacy already offers a Prime prescription savings benefit, which the company said would remain in place for medications not covered under RxPass.
Direct-to-consumer pharmacies such as Cost Plus Drug Company have made waves in the market recently. A study published last year found that Medicare could have saved $3.6 billion if it paid the same prices as Cost Plus Drug Company, founded by entrepreneur Mark Cuban.
Amazon RxPass’ list of covered medications includes generics ranging from amoxicillin for infections to several statins for high cholesterol. It also features 7 mental health medications, including the antidepressants bupropion, escitalopram, and sertraline.
The list of covered drugs appeared shorter than that offered by Cost Plus Drug Company, but Amazon’s announcement of RxPass emphasized the potential savings and convenience for members taking multiple medications that would sum up to more than $5 a month through other pharmacies.
The statement, written by Vin Gupta, MD, chief medical officer of Amazon Pharmacy, cited research by the Kaiser Family Foundation that found almost half of American adults surveyed take 2 or more prescription medications, and 26% report difficulty affording the cost of their prescription medicine.
Health care has been an area of interest for Amazon in recent years, although its ventures have not always taken off. It shuttered its employer-focused telehealth business Amazon Care last year, then launched Amazon Clinic, a virtual health care platform. Amazon in 2022 also acquired concierge primary care company One Medical for $3.9 billion, which raised concerns regarding anticompetitive behavior.
RxPass will not be available to members with government-funded insurance, such as Medicare or Medicaid, nor to those living in California, Louisiana, Maryland, Minnesota, New Hampshire, Pennsylvania, Texas, or Washington, although Amazon Pharmacy will still operate in those states. The discounts from RxPass do not go through prescription insurance, and members cannot use a health savings account or flexible spending account to pay their RxPass subscription fee.
Real-World Study Reveals Key Insights into DLBCL Treatment Patterns, Outcomes
April 18th 2024A recent study offers valuable insights into the characteristics, treatment patterns, and outcomes of diffuse large B-cell lymphoma (DLBCL) in patients across different lines of therapy, providing a look into the landscape of DLBCL management.
Read More
Navigating Health Literacy, Social Determinants, and Discrimination in National Health Plans
February 13th 2024On this episode of Managed Care Cast, we're talking with the authors of a study published in the February 2024 issue of The American Journal of Managed Care® about their findings on how health plans can screen for health literacy, social determinants of health, and perceived health care discrimination.
Listen
Pegcetacoplan for PNH More Cost-Effective Than Anti-C5 Monoclonal Antibodies
April 18th 2024A cost-utility analysis conducted from the perspective of the Italian health system found that pegcetacoplan was more effective and less costly than 2 complement 5 (C5) inhibitors for the treatment of paroxysmal nocturnal hemoglobinuria (PNH).
Read More
Drs Raymond Thertulien, Joseph Mikhael on Racial Disparities in Multiple Myeloma Care Access
December 28th 2023In the wake of the 2023 American Society of Hematology Annual Meeting and Exposition, Raymond Thertulien, MD, PhD, of Novant Health, and Joseph Mikhael, MD, MEd, FRCPC, FACP, chief medical officer of the International Myeloma Foundation, discussed health equity research highlights from the meeting and drivers of racial disparities in multiple myeloma outcomes.
Listen
Gene and Cell Therapies Hold Potential—but How Can Payers Manage Their Costs?
April 18th 2024Presenters at the Academy of Managed Care Pharmacy (AMCP) 2024 annual meeting discussed the current promise and future potential of gene and cell therapies, as well as payer management strategies for these costly treatments.
Read More
Prices for care at hospital trauma centers vary across hospitals; drug shortages reached a record high during the first quarter of 2024; although 3 of the biggest makers of asthma inhalers pledged to cap out-of-pocket costs for some US patients at $35, these do not apply to daily inhalers used by the youngest kids with asthma.
Read More