(Reuters) – Amazon.com’s (NASDAQ:) pharmacy unit said on Tuesday it is expanding eligibility for a monthly subscription that covers a range of generic drugs to those enrolled in government-backed Medicare insurance plans.
Amazon has been working to lure customers away from more established pharmacies like CVS and Walgreens since launching its pharmacy division in 2020.
The expansion will make more than 50 million more people eligible to use the service, known as RxPass, which launched for U.S. Prime members in January 2023 and costs $5 a month, Amazon said.
The subscription provides access to 60 eligible generic medications, 24-hour access to a pharmacist, and free home delivery of treatments for Prime members. Through RxPass, Amazon Pharmacy offers discounts of up to 80% off generic drugs and up to 40% off brand-name drugs for members with or without insurance.
U.S. spending on Medicare for people over 65 and people with disabilities is projected to rise 8.4% to more than $1 trillion in 2023, according to the federal government.
“Programs like RxPass help reduce costs while increasing convenience for caregivers and clients of all ages, which is proven to improve medication adherence and promote better health outcomes,” said John Love, vice President of Amazon Pharmacy.
Amazon says RxPass could help reduce Medicare costs by nearly $2 billion a year and lower out-of-pocket costs for seniors.
Medicare members who require one RxPass drug can save about $70 a year, and those who take two or more can save more, the company said.