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Amazon offers Medicaid recipients discounted Prime memberships

08 March, 2018, 03:44 | Author: Kristi Dunn
  • Amazon is including people on Medicaid in its discounted Prime membership

Inc. said on Wednesday it was expanding its discounted Prime membership offer to Medicaid members, the US government's health insurance program for the poor.

The service, which offers members special deals, fast shipping, free streaming, and many other perks, costs $12.99 per month or $99 per year.

According to the most recent data provided by the USA government, there were about 68.5 million Americans enrolled in Medicaid as of December.

For years, Amazon has been taking steps to attract more customers and has focused efforts on targeting low-income Americans and millennials.

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Last summer, Amazon offered the discounted membership price to customers on other government assistance programs, including the Supplemental Nutrition Assistance Program (SNAP), and Women, Infants, and Children Nutrition Program (WIC). The Prime membership can be renewed annually for up to four years and customers can cancel at any time. Morgan Stanley reported in December that growth in Amazon Prime memberships is also flattening out with the percentage of Americans who have Prime holding steady at about 40% between the end of 2016 and the third quarter of 2017.

Amazon's blind spot for low-income users has been a benefit to some of its largest competitors who have managed to offer services to recipients of government assistance. In a similar effort, Amazon past year also introduced Amazon Cash, a way to help people without bank accounts load money into their Amazon accounts. That brings down the price from $12.99/month to just $5.99/month. (Amazon doesn't disclose its number of Prime subscribers.) Amazon's decision Wednesday to more than double the size of potential customers for discounted Prime could significantly help it in that goal.

"This is just about our customers and our members and giving them the best of Amazon with an incredible selection of benefits".

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