People On Medicaid Now Get Amazon Prime For $5.99

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

Last summer, Amazon began offering a discount rate of $5.99 per month for Prime memberships to customers receiving government assistance. Prime subscriptions normally cost $12.99 per month, or $99 per year, but Amazon just announced it will give a $7 discount on the monthly rate to Medicaid recipients.

According to government data, some 68 million individuals are enrolled in Medicaid, the federal-state-funded health insurance program for needy and low-income people. 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.

Customers with Prime memberships are more lucrative for Amazon, according to a 2017 report from Consumer Intelligence Research Partners.

"We know a discounted Prime plan is not the solution to every problem customers face", said Aaron Perrine, general manager of Lifestage Programs at Amazon, "but we believe it's one piece of the puzzle in making their lives a little bit easier". Amazon also previous year began a program to deliver groceries to food-stamp recipients.

The New York Times says the move expands a previous Amazon effort started a year ago, when it offered Prime discounts to people with Electronic Benefit Transfer cards, used to distribute aid for food purchases.

Amazon has come under fire in the past for failing to accept EBT services.

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. The new offer is valid for up to four years, Amazon told Reuters. But Medicaid members will only have to pay $5.99 after a 30-day free trial period. But customers won't be able to share their Prime membership with a second adult, as with a regularly priced Prime membership.

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