Amazon Offers Discount Prime Membership to Medicaid Recipients

Mar 08, 2018, 01:57
Amazon Offers Discount Prime Membership to Medicaid Recipients

The $5.99-a-month price compares to the regular $12.99 pay-by-month option and is almost $30 cheaper than the $99-annual-fee plan.

People who receive Medicaid, an insurance program for low-income people, families and children, pregnant women, seniors, and people with disabilities, will be able to get a Amazon Prime membership for $5.99 per month beginning Wednesday.

Prime gives customers free two-day shipping and other perks like free video streaming and access to the Prime Now two-hour delivery service.

Amazon's move to offer discounted Prime memberships to those on government aid is notable due to the speculation on the company looking to enter into the pharmaceutical prescription drug market. When the program launched past year, it was open to customers with an EBT card. For Amazon, it also opens up a new customer base.

This is part of Amazon's play to go after lower-income customers.

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Amazon has been working to offer more services for lower-income shoppers, including discounted Prime memberships and Amazon Cash.

In that regard, offering a social benefit for people who may have more challenges getting to a store or affording faster shipping could become sound business, too, said Avi Greengart, an analyst at Global Data.

Amazon Prime memberships are now available at the special price of $5.99 per month for tens of millions of American consumers.

To qualify for for the discounted membership, customers can visit and upload an image of their EBT card or Medicaid card. Eligible shoppers need to reapply once a year and are eligible for up to four years. But it's not altruism; Amazon Prime has been widely adopted by middle-class and well-off Americans, so if the membership program is going to continue to grow in the US, the company has to figure out how to attract other demographics. He said Prime has helped save her time and money by helping her skip some of those errands.