The full entry of Amazon into the pharmacy market could be a real positive for employers as well as health care consumers. While there may be a savings for many paying cash for their medication, also watch for improved compliance and even more consistent on-time deliveries for mail order medication. Amazon already owns PillPack, a pill organizing service that puts daily medication in pouches for the consumer, expect further innovation from the retail giant as it moves into the pharmacy space.
How does it work?
Amazon states that the “Amazon Pharmacy… allows customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App. Using a secure pharmacy profile, customers can add their insurance information, manage prescriptions, and choose payment options before checking out. Prime members receive unlimited, free two-day delivery on orders from Amazon Pharmacy included with their membership.” Learn more about Amazon’s Pharmacy features: https://pharmacy.amazon.com/
Prime members receive additional benefits of “up to 80% off generic and 40% off brand name medications when paying without insurance. Prime members will have access to their prescription savings at checkout on Amazon Pharmacy.” Additionally, Prime members will receive a free two-day delivery option. Learn more about Prime members’ features: https://www.amazon.com/primerx
Amazon Pharmacy offers online self-service help options as well as 24/7 phone access to pharmacists who will answer any questions about medications at 855-745-5725. Amazon notes that patients’ health information, including medication history, medical conditions, and health insurance information is protected under The Health Insurance Portability and Accountability Act, which requires that protected health information is not shared outside of the pharmacy for advertising or marketing purposes without clear permission from the customer.
Forbes notes that, even with Amazon’s 112 million Prime members, with a claimed 72 million interested in prescription delivery, Amazon is not alone in a market saturated with options. But, Forbes feels there is an opportunity for disruption:
Forrester’s Consumer Technographics Healthcare Topic Insights survey data shows that 27% of consumers want their pharmacy to offer more convenient delivery options including the ability to order prescriptions online. Amazon Pharmacy delivers on this demand and taps the company’s vast customer base by adding new value for its 120M+ Prime members in the US. A recent survey of 2,500 individuals by Cowen & Co found almost 60% of Prime members would consider having their prescriptions delivered. Significant portions of market share owned today by CVS Health, Walgreens, Walmart, Costco, etc. will shift to Amazon. The open question is how much and how quickly.
“We understand the importance of access to affordable medication, and we believe Prime members will find tremendous value with the new Amazon Prime prescription savings benefit,” said Jamil Ghani, Vice President, Amazon Prime. “Our goal is for Prime to make members’ lives easier and more convenient every day, and we’re excited to extend the incredible savings, seamless shopping experience, and fast, free delivery members know and love with Prime to Amazon Pharmacy.”