Medicaid Recipients Can Now Get a Discount on Amazon Prime

Amazon is taking aim at Walmart by offering a 54 percent discount on Prime memberships for Medicaid recipients

Amazon is making another move in its courtship of lower-income shoppers, announcing a discount on its Amazon Prime monthly membership fee for recipients of Medicaid.

An Amazon Prime membership includes perks such as two-day shipping on more than 100 million products, unlimited photo storage and free online streaming of thousands of movies and TV shows.

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. It comes on the heels of discounts introduced in June for shoppers on some forms of government assistance who use and Electronic Benefits Transfer card, an sizable part of Walmart's clientele.

The discount is substantial: Amazon asks these lower-income customers to pay $6 a month.

The Medicaid connection may also stir more nerves among healthcare companies anxious about tentative moves by Amazon to sell and distribute some medical supplies and drugs.

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"We hope to make Prime even more accessible", Amazon Prime Vice President Cem Sibay said in a statement.

About 41 million people receive food stamp benefits, according to November 2017 data, and over 80% of SNAP benefits are redeemed at supermarkets and superstores.

The program aims to give people who might not otherwise be able to afford it access to Prime.

Customers will need to renew their membership every year and the lower rate will only be available for four years for each customer. There is no annual commitment and customers can cancel the membership at any time.

Students can also get a discount on Prime. But Medicaid members will only have to pay $5.99 after a 30-day free trial period. Her youngest son has a rare genetic disorder that prevents her from working full time and makes going to the store more hard.

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