Amazon expands $5 prescription service to Texas

AUSTIN - Amazon Pharmacy, a division of the $2.48 trillion market cap retail giant Amazon (AMZN), announced Monday the expansion of its RxPass prescription subscription service to Texas, offering Prime members access to over 50 commonly prescribed medications for $5 per month with free delivery. The move comes as the company, which has achieved nearly 11% revenue growth in the past year, continues to strengthen its healthcare presence. According to InvestingPro analysis, Amazon maintains a "GREAT" financial health score, positioning it well for such strategic expansions.

The service targets nearly 2 million Texans living in pharmacy deserts who manage multiple chronic conditions. Texas ranks fourth highest in the percentage of U.S. adults with three or more chronic health conditions, according to the company’s press release. For investors tracking Amazon’s healthcare initiatives, InvestingPro reveals 12+ additional exclusive insights about the company’s growth strategy and market position.

RxPass covers medications treating conditions including anxiety, diabetes, hypertension, and heart disease. The subscription price remains $5 monthly regardless of how many prescriptions a member needs. The service includes free two-day delivery and same-day service in eligible locations.

"At a time when nearly half of the U.S. population is managing chronic conditions, bringing affordable and convenient access to medications through our expansion of RxPass to customers in 48 U.S. states will help many manage their conditions more easily," said John Love, Vice President of Amazon Pharmacy.

The service is available to Medicare beneficiaries and aims to address medication adherence challenges. According to the company, nearly 89% of adults 65 and older report taking prescription medications, with more than half managing four or more prescriptions.

Healthcare providers can prescribe medications directly to Amazon Pharmacy, and customers can transfer existing prescriptions. Licensed pharmacists are available 24/7 to answer medication questions.

With this expansion, Amazon Pharmacy now offers RxPass in 48 states nationwide. The company accepts most insurance plans and offers additional savings options for Prime members. As Amazon trades near its 52-week high, 22 analysts have recently revised their earnings expectations upward, suggesting strong confidence in the company’s growth initiatives. Detailed analysis of Amazon’s healthcare strategy and growth potential is available through InvestingPro’s comprehensive research reports.

In other recent news, Amazon’s financial landscape has been marked by several noteworthy developments. Cantor Fitzgerald and Barclays have both reiterated their Overweight ratings on Amazon, with price targets set at $280.00 and $275.00, respectively. Cantor Fitzgerald’s positive outlook follows Amazon’s partnership with JetBlue to provide in-flight Wi-Fi services using its Kuiper satellite network, expected to commence in 2027. Barclays highlights the growth potential of Amazon Web Services (AWS), particularly noting Anthropic’s contribution to AWS revenue, which could significantly boost growth once fully operational. Additionally, an Italian administrative court has reduced a €1.13 billion fine imposed on Amazon in 2021 for abusing its market dominance, though the main findings were upheld.

In efforts to better integrate its grocery business, Amazon announced plans to extend corporate benefits to U.S. corporate employees at Whole Foods by December 2026. This move aims to align pay structures and benefits across its grocery units, while Whole Foods Market corporate employees will continue to enjoy in-store discount perks during the transition. Meanwhile, DoorDash received a reiterated Buy rating from Truist Securities, with a price target of $326.00, driven by strong intra-quarter spending data that surpassed Street expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.