Amazon Pharmacy aims to make insulin more affordable

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In a bid to expand its presence into the retail pharmacy space, Amazon Pharmacy is introducing a coupon system meant to make prescription drugs more affordable for consumers.

The pharmacy arm of the online retail juggernaut is introducing automatic coupons, which promise savings on more than 15 insulin and diabetes care brands. They apply to some of the most commonly prescribed products from Novo Nordisk, Eli Lilly, Sanofi, Dexcom and Insulet – like insulin vials, pens, continuous glucose monitors and pumps – and were touted as a way to save both time and money.

With automatically-applied, manufacturer-sponsored coupons, many insulin brands are available to eligible customers starting at $35 a month, the company said.

WHAT'S THE IMPACT?

While coupons for medications aren't new, finding and redeeming them isn't always easy, with one study from the Commonwealth of MA Health Policy Commission showing an estimated 85% of manufacturer-sponsored coupons go unused.

That was a large part of the impetus behind the automatic coupons, with Amazon developing technology that automatically applies eligible coupons at checkout. Whether eligible customers are insured, underinsured or uninsured, they'll be able to view prices directly.

"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, vice president of Amazon Pharmacy. "The lack of upfront pricing in pharmacy is a pain point for customers that Amazon Pharmacy can help solve."

The coupons are available for insulin and diabetes care products, as well as other brand-name therapies for the treatment of COPD, obesity and other conditions.

THE LARGER TREND

In February Amazon completed its $3.9 billion acquisition of primary care provider One Medical. 

It represents another deal in the move towards the retailization of healthcare, a trend Bain & Company predicts will grow to consume close to a third of the primary care market. Nontraditional players such as Amazon, CVS Health, Walgreens Boots Alliance and Walmart will own as much as 30% of the primary care market by 2030, the consulting company said, in a report cited by the American Hospital Association.

Earlier this year, HHS issued a new report showing the major savings coming to roughly 1.5 million people in Medicare thanks to the $35 cap on a month's supply of insulin through the Inflation Reduction Act. 

The report also found that, nationally, the average out-of-pocket cost was $58 per insulin fill in 2019, typically for a 30-day supply. Patients with private insurance or Medicare paid about $63 per fill on average, and one in five Americans taking insulin paid more than $70 per prescription, the report said.

The insulin provisions of the Inflation Reduction Act went into effect January 1, for Medicare Part D.  Starting July 1, under Medicare Part B, beneficiary cost-sharing was limited to $35 for a month's supply of insulin.

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com