December 20, 2023- Amazon has tried different avenues in its quest to tap into the healthcare market in recent years. It acquired online pharmacy PillPack in 2018 and launched Amazon Care in 2019 as a primary care service for its employees that blended telehealth with in-person medical services. It unveiled Amazon Pharmacy in 2020 offering discounts to Prime members and free delivery. In 2021, Amazon Care expanded to outside employers and added in-person care options in multiple cities, but it shut down last August after struggling to get insurers on board and after Amazon’s acquisition of primary care provider One Medical for $3.9 billion.
Amazon Clinic was launched last November, which is available to people 18 to 64 years of age in all 50 states and Washington, D.C. Customers can use messaging to consult a clinician about common conditions like acne, migraine headaches and hair loss, among other conditions. It uses third-party vendors and does not accept health insurance, instead charging a flat fee, and customers can see their medical cost before their visit.
This January, Amazon introduced RxPass for $5 per month for Prime members to get all their eligible generic prescriptions through the e-commerce giant as companies are seeking to drive down the cost of generics by removing pharmacy benefit managers (PBMs) from the supply chain or manufacturing the drugs on their own.
Learn More in the latest issue of The Journal of Healthcare Contracting.