How Amazon’s RxPass Works

If you take prescription drugs, you’re likely looking for ways to save money. One new service making headlines is RxPass from Amazon Pharmacy. Established in 2023, RxPass is a monthly subscription for your medications that might reduce your costs. Let’s take a closer look at this service and whether it might be a good choice for your prescription needs.

What Is Amazon RxPass?

RxPass is Amazon’s version of a monthly prescription subscription. You pay $5 monthly to receive all your eligible medications. So far, RxPass offers 61 generic drugs to treat a range of conditions, including allergies, arthritis, diabetes, and high blood pressure. The monthly fee covers every prescription, meaning you pay the same whether you need one or 12 medications.

How Does Amazon RxPass Work?

After signing up for RxPass, you add your eligible medications to your monthly delivery. Keep in mind that RxPass only carries generic medications, so your doctor must prescribe non-brand-name drugs.

If you have an existing prescription, Amazon will need to work with your current pharmacy to get your prescription information. If you have a new prescription that has not been filled yet, your doctor can submit your prescription directly to Amazon Pharmacy. Once Amazon verifies your prescriptions, your medications is shipped to your address inside discreet packaging.

How Much Does RxPass Cost?

Note that before you can take advantage of RxPass, you need to become an Amazon Prime member. Currently, membership is $139 a year and includes other features like expedited shipping when buying items from Amazon.com, access to its Prime Video service, and member-exclusive discounts at Whole Foods.

This membership fee does not include the monthly fee for RxPass access. Amazon Prime members can opt to subscribe to RxPass for an additional $5 per month. If you join in the middle of a month, you pay a prorated rate for the first month, and you’re charged the full amount on the first day of the following month. It should be noted that you cannot use your insurance to pay for any part of RxPass, so these fees must come entirely out of pocket.

Am I Eligible for RxPass?

You are not eligible to join if you currently utilize any of the following types of government-sponsored insurance:

• Medicare
• Medicaid
• Children’s Health Insurance Program (CHIP)
• Indian Health Services
• Federal Employees Health Benefits (FEHB)
• TRICARE
• CHAMPUS
• VA
• Peace Corps Health Services
• Railroad Retirement (RRB)
• Black Lung Benefits
• Federal Employees’ Compensation Act (FECA)

RxPass also excludes residents of the following states:

• California
• Minnesota
• New Hampshire
• Texas
• Washington

Pros and Cons of Using Amazon RxPass

There are many pros and cons to RxPass. Before joining the program, carefully consider the following advantages and disadvantages.

Pros

• One fee for every medication: You get access to as many prescribed medications as you need for a low $5 monthly fee. You do not pay for medications separately, and there’s no limit on how many medications you can order each month.
• Free delivery: Amazon delivers your medications to you at no extra cost.
• Automatic refills: You do not need to worry about reordering your medications every month because Amazon will automatically send you more medication at specific intervals.

Cons

• Limited medication coverage: Amazon RxPass only covers 61 generic medications. It’s not a good choice if you need a brand-name medication or another generic that it does not offer. You would have to pay for these without RxPass.
• Cannot use your health savings account (HSA) or flexible spending account (FSA): Amazon does not allow you to pay for the service using funds from your HSA or FSA.
• Have to join Prime to be eligible: RxPass is only available to Prime members. Currently, it costs $14.99 a month or $139 a year to be a Prime member.
• Location restrictions: People who live in California, Minnesota, New Hampshire, Texas, and Washington are not eligible to join RxPass.
• Government-funded insurance restrictions: If you currently use government-funded insurance like Medicare or Medicaid, Amazon does not allow you to sign up for RxPass.

Is It Worth Signing Up for RxPass?

To know for sure if RxPass would be a good deal for you, it helps to do a little math. In total, Amazon RxPass costs $199 a year if you include the annual Prime subscription cost. With the $5 per month fee, that equates to $16.58 a month for your prescriptions.

Compare this number to what you would pay for your prescriptions using your insurance. Is it more or less? For many consumers taking common generic medications, using insurance may be cheaper. For example, one survey found that the average copayment for prescription drug coverage was $11 for first-tier drugs, which are the types of generic drugs Amazon RxPass offers. People with lower copays may find it’s not a good deal to use RxPass.

You also have to consider your out-of-pocket maximum. In insurance plans, this is the maximum amount you pay before your health costs are covered at 100% for the rest of the year. RxPass payments do not count toward this amount because you’re not paying with your insurance. However, any payments you make for drugs covered by your insurance plan do. If you anticipate having a lot of medical bills throughout the year, it might make more sense to work toward reaching your out-of-pocket max by using insurance to pay for your medications.

Find Ways to Lower Your Prescription Costs Outside of RxPass

For some people, RxPass might be a way to lower their subscription costs. However, for many, it’s often better to find an insurance plan that offers robust prescription drug coverage. If you need help finding a plan that can lower your medication bills, partner with a licensed health insurance agent to get personalized help for your specific situation.