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Amazon.com expands offer of sharply discounted Prime membership to Medicaid recipients

Proactive Investors Wednesday, 7 March 2018
Amazon.com Inc. (Nasdaq:AMZN) is looking to create more ties with low-income customers by offering people on Medicaid a discount of more than 50% on memberships to Amazon Prime. Qualifying Medicaid insurance recipients now are eligible for a discounted Prime membership rate of $5.99 a month, which is 54% lower than the regular Prime monthly rate of $12.99 that was put in place in mid-January. Amazon already offers the $5.99 monthly rate to low-income customers with a valid Electronic Benefit Transfer card, which is for government food benefits. The Amazon Prime rate for low-income customers represents a 27% discount to the $99 rate that regular Prime customers pay if they pay the annual membership fee upfront. According to Recode, Amazon executive Aaron Perrine said the goal of the discount is to give more people access to "aspects of the digital economy — some conveniences and benefits — that I think a lot of us take for granted." An Amazon Prime membership provides such perks as two-day shipping on most products, unlimited photo storage and free online streaming of movies and TV shows.
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News video: Amazon Offering Prime Membership for Those on Medicaid

▶ Amazon Offering Prime Membership for Those on Medicaid 00:39

Amazon has announced that beginning Wednesday, individuals who qualify for Medicaid can pay a lower price on Prime memberships. The standard Prime cost is $13 per month, but Amazon users on Medicaid will be able to take advantage of the two-day shipping service and other perks for $6 a month. The...

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