Many are familiar with Amazon selling everything from household items to clothes and pet supplies – and getting these items to the buyer quickly. But, how do their pharmacy programs work?

Amazon Pharmacy

Amazon Pharmacy allows individuals to purchase up to a 30-day supply of their medication online for home delivery. Embedded within the program is a transparent pricing feature that shows the cost of the prescription with and without insurance to allow health plan members to make the best consumer decision for their purchase.

Individuals can sign up via amazon.com/pharmacy with their basic information, medications and health history. Amazon Pharmacy will accept most insurance plans and prescriptions can be sent directly to Amazon Pharmacy by the prescriber, or Amazon will request the prescription on the individual’s behalf. Pharmacists are available 24/7 to provide guidance and consultation. Prime members will receive free two-day delivery; other customers get free four to five-day delivery or can upgrade to two-day for an additional shipping fee.

The following are not available through Amazon Pharmacy:

• 90-day fills
• Automatic refills (individuals will receive notification when it’s time for a refill)
• Coupon or discount codes
• Breast pumps
• Compounded medications
• Diabetic testing and administration supplies (e.g. test strips, glucose meters and pen needles)
• Medical devices (e.g. braces, insulin pumps and nebulizers)
• Pet prescriptions
• REMS medications
• Schedule II-controlled medication
• Specialty medications
• Suspensions (e.g. liquid amoxicillin or fluconazole)
• Vaccines
• Vitamins and over-the-counter (OTC) items
• Prescriptions for customers under the age of 18
• Prescriptions that require shipping to Hawaii, Illinois, Kentucky, Louisiana or Minnesota

Amazon recently announced it has expanded same-day delivery of medications to more than a dozen U.S. cities. However, Ohio, Michigan and Pennsylvania still have longer delivery times. The home-delivery giant is also using artificial intelligence to help pharmacists fill prescriptions faster and more accurately.

Amazon Prime Rx

Amazon Prime members can save as much as 80% off generic and 40% off brand name medications when not using insurance. This discount program is available at 60,000 participating retail pharmacies including CVS, Walgreens, Rite Aid and Walmart. Members can present a digital savings card when not accessing through Amazon Pharmacy to receive the benefit. The prescription savings benefit is for Prime members and one other adult member of their Amazon household. The program, administered by Inside Rx, is not insurance and cannot be combined with any insurance or secondary payer program.

Additional information on the program, including the digital Prime member prescription savings card can be accessed at amazon.com/primerx.

Our Observations

The Amazon entrance into the pharmacy space is a potential disrupter for an industry that is notoriously complex and competitive. While many have increasingly relied on mail delivery methods for goods and services, prescriptions dispensed via mail have not yet experienced the same significant growth. The transparency component of the program is a welcome addition that promotes a better understanding of prescription drug costs, hopefully driving more consumerism in decision-making.

The Prime discount benefit competes with similar discount card providers and is especially beneficial for those not covered by insurance or with higher initial patient responsibility.

The jury is still out as to whether Amazon Pharmacy will produce any substantial savings over their retail competitors. The initial entrance comes as an alternative delivery option for members, as opposed to a fundamental shift in the underlying pharmacy structure and pricing model.

While it’s becoming more convenient, the Amazon programs still has restrictions. Only certain medications can be ordered through the pharmacy. Amazon cannot ship to certain states or order drugs for minors, and individuals need to initiate a new order each month. Given Amazon’s significant brand presence, it will be worth watching to see how far they expand into the health care arena.

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This story was updated on April 24, 2024. It was originally published in 2021.

Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, ISBC makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information.