Amazon Offers $5 Monthly Prescription Drug Plan

Hand holding a smartphone displaying Amazon's RxPass medication delivery


Key Takeaways

  • Amazon (AMZN) indicated that it would make a monthly prescription medication service available to its Prime members.
  • Subscribers to Amazon's RxPass, which will cost $5 per month on top of Prime membership fees, will gain access to certain generic medicines with free shipping and no additional charges.
  • Amazon shares fell 1% on Jan. 24, the day that the retail giant announced the move.

Amazon (AMZN) is expanding its reach into healthcare by offering a low-priced prescription drug plan for its Amazon Prime members.

The company explained that those in the program, called RxPass, will receive generic medicines that treat more than 80 common health conditions for free, along with free delivery, for a monthly fee of $5. The fee would be in addition to the $139 per year cost for Prime membership.

Amazon noted that Prime members who typically take two or more medications per month to manage chronic or ongoing health conditions could save significant time and money with RxPass. It added that among the drugs available are those that treat high blood pressure, anxiety, and acid reflux.

John Love, vice president of Amazon Pharmacy, said the plan gives customers "surprisingly simple, low pricing" for their medications. Amazon indicated that members can sign up for RxPass in most states beginning today.

Healthcare Moves

Amazon has been adding several healthcare services to its business portfolio since 2018 when it purchased online pharmacy PillPack. Last summer, it spent $3.9 billion to acquire primary care provider One Medical.

CEO Andy Jassy has noted that healthcare is one area of opportunity the company "has conviction of pursuing" even as it laid off workers and took other steps to cut costs.

Amazon shares fell 1% today, and they've lost a third of their value in the past 12 months. 

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Amazon. "Amazon Pharmacy Introduces RxPass: Unlimited Prescription Medications for Only $5 a Month, Delivered Free to your Door—Available Exclusively for Prime Members."

  2. Amazon. "Amazon and One Medical Sign an Agreement for Amazon to Acquire One Medical."

  3. Amazon. "A Note From CEO Andy Jassy About Role Eliminations."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.