Amazon.com Inc. (NASDAQ: AMZN) announced on Wednesday that will offer a discounted prime membership to qualify recipients of Medicaid for as low as $5.99, half of the original price tag of $12.99 per month.
“We hope to make Prime even more accessible,” said Cem Sibay, Vice President, Amazon Prime. “With more than 100 million products to choose from, low prices, time savings, and fast and convenient delivery options, the combination of shipping, shopping and entertainment provide tremendous value to customers.”
The Prime members will still receive benefits of full paying members such as Prime Video, Music, Photos, Reading, Audible channels, Prime Now, and even free same-day and one-day shipping.
Amazon’s move comes almost nine months after it said previously that it would offer customers on U.S. government aid discounted membership fees.
To qualify for the discount, customers must provide a valid Electronic Benefits Transfer (EBT) card or Medicaid card. Customers will be able to renew their discounted membership every year for up to four year and cancel at any time, Amazon wrote in a blog post.
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.
Amazon has already received approval and licenses to operate in some states, but there is no definitive answer to what the company may do. Regardless, the new initiative worries other healthcare companies as the eCommerce tech giant is entering into yet another sector of the market.