Amazon expands automatic pharmacy coupons to insulin
Amazon’s automatic prescription couponing program now covers an important, and often costly, medication.
The company, which began automatically applying manufacturer-sponsored coupons directly to Amazon Pharmacy orders from eligible customers in March 2023, is now providing instant savings on more than 15 insulin and diabetes care brands.
Amazon has developed technology that automatically applies eligible coupons at checkout, so customers can obtain savings without additional work. Whether eligible customers are insured, underinsured, or uninsured, they will be able to view the price of each product directly on Amazon.
Customers can now obtain automatic savings on the most commonly prescribed products from Novo Nordisk, Eli Lilly, Sanofi, Dexcom, and Insulet, including insulin vials, pens, continuous glucose monitors, and pumps. With automatically-applied, manufacturer-sponsored coupons, Amazon says many insulin brands are available to eligible customers starting at $35 a month.
“Imagine not knowing the price of food or other essentials before being asked to pay at the cash register—that would be a terrible experience,” said John Love, VP of Amazon Pharmacy, in a corporate blog post. “The lack of upfront pricing in pharmacy is a pain point for customers that Amazon Pharmacy can help solve. Similar to how customers shop for the items they need on Amazon, we’re making it simpler to get critical medications. We’re thrilled to be able to help customers better find and afford their insulin.”
“Even though upfront pricing sounds obvious, it’s a sea change in health care. As a physician, it’s heartening to know that patients will have visibility into the cost of their insulin before they stand in line or wait to speak with a pharmacist. And, if the cost isn’t what they anticipate, we can more quickly find other options that are affordable and appropriate to their care,” said Dr. Vin Gupta, chief medical officer of Amazon Pharmacy, in the blog post. “Automatically applying coupons allows patients to better access medications that are effective and affordable, and this combination can improve adherence and support better care.”
Prescription medication is big business
Prescription medication is a $300 billion-plus market that is dominated by pharmacy giants such as CVS Health, Walgreens and Rite Aid, along with supermarkets and discounters that offer prescriptions, such as Walmart.
In addition, Mark Cuban, billionaire entrepreneur, owner of the Dallas Mavericks and co-star of the TV show "Shark Tank," launched an online pharmacy with an initial inventory of more than 100 generic drugs, the Mark Cuban Cost Plus Drug (MCCPDC) Company, in January 2022.
The cash pay pharmacy's prices reflect actual manufacturer prices plus a flat 15% margin and a $3 pharmacist fee, with prescription fulfillment and delivery through a partnership with digital healthcare company Truepill.
Amazon moves into pharmacy, healthcare
Amazon, which launched Amazon Pharmacy in November 2020, has been active in the healthcare space in general, and the pharmacy vertical in particular, in the past few years. In January 2023, Amazon Pharmacy launched RxPass, a new offering for U.S. Prime Members.
The plan allows Prime members in most states to order as many prescriptions as they need from a list of some 50 generic drugs — for a flat monthly add-on fee of $5 to Prime membership, with no other mark-ups. The available medications, which will be delivered free of charge, treat more than 80 common health conditions, including high blood pressure, acid reflux and diabetes.
In addition to, the company acquired online pharmacy startup PillPack in 2018. Now known as PillPack by Amazon, it specializes in delivering presorted dose packaging for managing multiple daily medications for chronic conditions.
In other healthcare moves, in July 2022, Amazon entered into an agreement to acquire One Medical, a membership-based primary healthcare provider, for $3.9 billion, its third-biggest acquisition to date. The San Francisco-based healthcare startup offers a combination of in-person, digital and virtual care services, promising members “24/7 access to virtual care.”
And in November 2022, the e-tailer rolled out its new Amazon Clinic virtual healthcare solution in 32 states. Amazon Clinic provides virtual care for more than 20 common health conditions, such as allergies, acne, and hair loss.
In a statement at the time of the July 2022 One Medical acquisition, Neil Lindsay, senior VP of Amazon Health Services, said that Amazon believes “health care is high on the list of experiences that need reinvention.”