Sunday, 19 August, 2018

Amazon Launches Low-Cost Prime Membership For Medicaid Recipients

Amazon is including people on Medicaid in its discounted Prime membership Amazon is including people on Medicaid in its discounted Prime membership
Nellie Chapman | 07 March, 2018, 20:41

The Seattle retail giant past year introduced that discounted rate for people who receive government food assistance and have a valid Electronic Benefits Transfer card.

Getting more Prime members could financially benefit Amazon, as subscribers already spend an average of $1,700 per year - compared to just $700 for non-Prime shoppers.

Amazon is offering customers with Medicaid a 54% discount on its popular Prime membership. Prime members have access to free two-day shipping on most items, same-day delivery in some locations and streaming music and videos.

Whether the discounted Prime membership program will be a success or not depends on how you look at it.

Expanding access for lower-income households to affordable products is likely to benefit Medicaid recipients who may otherwise have limited access to the goods and services they need. Cancel anytime.In addition to free two day shipping, a Prime membership offers other perks including thousands of movies and TV shows, over two million songs, exclusive deals, free two hour shipping with Prime Now, discounts on subscriptions, and more. The majority of the remaining recipients are either 65 or older, disabled or working part or full time. Amazon also previous year began a program to deliver groceries to food-stamp recipients.

Analysts with MoffettNathanson, who periodically survey members of Prime and rival retail membership programs from the likes of Costco and Walmart's Sam's Club, found that people with incomes below $45,000 were slightly less likely to renew their Prime membership than higher earners, though the portion of people in that bracket who said they meant to renew in a recent survey was still above 90 percent.

It also allows Amazon to go head-to-head with Walmart for a less affluent market, though Amazon does not describe it that way.

In 2016, Walmart generated $13 billion in sales from customers using SNAP benefits. That accounted for about 18 percent of money spent through the program nationwide.