Cheaper Amazon Prime for Medicaid Recipients

Mar 08, 2018, 01:55
Cheaper Amazon Prime for Medicaid Recipients

Amazon already has a stranglehold on wealthy shoppers: More than 70% of upper-income households-with annual income over $112,000-had Amazon Prime memberships, according to one study.

Nonetheless, Amazon will offer Medicaid members a reduced Amazon Prime subscription price. This follows a previous outreach effort aimed at those with cards used in other public assistance programs.

With the moves, Amazon is increasingly battling Walmart and other low-cost retailers for the wallets of those with less disposable income.

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

Under the offer, customers on Medicaid can get Amazon Prime for $5.99 a month, or $7 less than the new regular monthly fee of $12.99.

Medicaid is the government program that helps provide health coverage for many low-income families and disabled individuals. A Morgan Stanley survey found 40% of Amazon Prime members spend over $1,000 a year on Amazon compared to 8% of non-Prime customers.

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Inc. declined to say how many people signed up for Prime under the EBT card expansion, but Aaron Perrine, who oversees the program, says those that did sign up kept the service and were engaged Prime users. More than 42 million participate in the food stamps program, through what is now called the Supplemental Nutrition Assistance Program.

Industry analysts believe Amazon is maneuvering both to expand its Prime membership numbers, and to go after people whose first shopping destination may be Walmart.

All recipients of either EBT or Medicaid benefits need to do is show their card and verify their status with Amazon by taking a picture.

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

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