By Amina Niasse <\/p>\n
NEW YORK, Sept 29 (Reuters) – Amazon.com, GoodRx and other companies offering online subscriptions that charge a flat fee for prescription drugs and other health services are reaping the benefits of Americans looking to combat rising costs and dwindling health insurance options. <\/p>\n
The prescription plans \u200ccost from $5 per month at Amazon to $14.99 at GoodRx and include free access to select generic drugs. GoodRx’s program, called Companion, also offers \u200cdiscounts on telehealth and common vision, dental and lab services. <\/p>\n
Analysts said these monthly fee-based services can help consumers save money even when they have health insurance. <\/p>\n
“If someone is on multiple drugs, this kind \u200bof subscription can make a lot of sense,” said Truist analyst Jailendra Singh. <\/p>\n
Health insurance premiums and out-of-pocket costs have risen in part due to higher prices for medical services, and millions of Americans have dropped individual plans offered under the Affordable Care Act in 2026. Costs for employers who sponsor most private insurance plans will rise up to 11% in 2027, benefits consultants say. <\/p>\n
SUBSCRIPTIONS, SHARE PRICES RISE <\/p>\n
“Since we launched RxPass in 2023, the number of customers using the program has grown nearly threefold, and more than \u200c70% fill three or more different medications with us,” \u2060said John Love, vice president at Amazon Pharmacy. “That tells us RxPass is reaching people with ongoing health needs, where consistent access to affordable refills really matters.” <\/p>\n
It is not clear how many Americans are enrolled in prescription drug subscription plans. <\/p>\n
GoodRx said total subscription \u2060revenue increased 39% to $28.5 million in the second quarter from a year earlier. Subscription plans, which include the Companion plan launched in May and other older programs, increased 14% in the quarter. <\/p>\n
GoodRx CEO Wendy Barnes said the plan is drawing consumers squeezed by higher out-of-pocket costs, including rising deductibles and narrower lists of covered drugs. “Think of it as a \u200bcomplement \u200bto insurance,” she said. <\/p>\n
Shares of GoodRx and Amazon are up 22% and 7%, respectively, this \u200byear. <\/p>\n
William Soliman, chief investment officer at White Manna Capital Partners, said \u200ccustomers pushed into high-deductible plans in which people must spend thousands of dollars before coverage kicks in often compare cash-pay options with out-of-pocket prices for prescription drugs. <\/p>\n
“(Amazon’s) $5 monthly price is simple and predictable, which matters when consumers are navigating complicated coverage changes,” said Soliman. <\/p>\n
Amazon’s Love said RxPass attracts people with and without health coverage, and many choose to pay with cash. Many consumers are seeking refills of mental health and cardiovascular drugs, he said. <\/p>\n
AVAILABILITY OF GENERIC DRUGS VARIES <\/p>\n
Generic versions of branded medicines can cost a few dollars a month or less, but some may be far more expensive. <\/p>\n
Amazon’s plan, available to Prime members, offers around 50 generic drugs \u200cand GoodRx offers over 250, a fraction of the 30,000 approved in the US. <\/p>\n
Another company, \u200bFreeRx, charges $49.95 per month for virtual urgent care appointments and more than 1,000 generics. Mark Cuban’s \u200bCost Plus Drugs offers generics at prices it says are cheaper than \u200bthe standard $10 or $15 co-pay most health insurance plans charge. <\/p>\n
Cuban said his platform’s pricing, based on his acquisition cost of the drug \u200cand a 15% markup, offers better value than a subscription over \u200btime. <\/p>\n
The subscriptions can lead customers to other \u200bproducts sold by the companies on their websites, analysts said. Amazon offers people with Prime subscriptions a discount on One Medical primary care, for instance. <\/p>\n
“Can Amazon become the front door to healthcare? 100%,” said Tom Hulick, managing partner at Strategy Asset Managers, an investment firm that owns less than \u200b1% of Amazon shares. <\/p>\n
Investors expect RxPass revenue to remain \u200cmodest compared to the e-commerce giant’s projected $828 billion in 2026 revenue, according to LSEG data. <\/p>\n
“I wouldn’t even think of RxPass as a revenue \u200bproduct,” said Rajiv Leventhal, a healthcare analyst at research firm EMarketer. Its value is to push people to Amazon Pharmacy and strengthen \u200bPrime subscriptions, he said. <\/p>\n
(Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot) <\/p>\n","protected":false},"excerpt":{"rendered":"By Amina Niasse NEW YORK, Sept 29 (Reuters) – Amazon.com, GoodRx and other companies offering online subscriptions that…\n","protected":false},"author":2,"featured_media":911350,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[2574,317558,64,63,111033,117454,137,23191,4631,490,24019,62625,73046,479003],"class_list":["post-911349","post","type-post","status-publish","format-standard","has-post-thumbnail","category-medication","tag-amazon","tag-amazon-pharmacy","tag-au","tag-australia","tag-generic-drugs","tag-goodrx","tag-health","tag-health-insurance","tag-insurance","tag-medication","tag-prescription-drugs","tag-subscription","tag-subscriptions","tag-william-soliman"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/911349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=911349"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/911349\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/911350"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=911349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=911349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=911349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}