Amazon Pharmacy Challenges CVS Health And Walgreens Dominance, Unveils New Features To Expand Medicare Access

Amazon Pharmacy has announced two updates to make medication management easier and more accessible for millions of customers across the U.S., especially caregivers and Medicare patients.

The enhancements include a new caregiver feature and expanded access to its PillPack service for Medicare beneficiaries.

The caregiver support feature allows Amazon Pharmacy customers to invite trusted individuals to manage medications on their behalf.

Once verified, caregivers can oversee prescriptions through their own Amazon accounts.

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According to AARP, this update addresses a growing need: One in five U.S. adults, or about 53 million people, cares for an aging family member. Many spend the equivalent of a full workday each month coordinating health care, with medication management being among the most complex tasks.

Setting up caregiver access is simple: A customer logs into their Amazon Pharmacy account and sends an invitation via mobile phone number. After verifying a few details, like the customer’s date of birth, the caregiver receives a secure link by text message and can begin managing prescriptions from their account.

In addition, Amazon Pharmacy has expanded access to its PillPack service for Medicare Part D members.

PillPack offers personalized medication packets organized by date and time, designed to simplify the daily routine of people taking multiple prescriptions.

This service is now available to over 50 million Medicare Part D beneficiaries, helping eliminate the burden of sorting pills and tracking refill schedules. Eligible customers can sign up through their Amazon Pharmacy account to enroll.

Customers will receive monthly pre-sorted packet shipments after reviewing their medications and insurance details. Amazon coordinates all refills so medications arrive together each month.

Amazon Pharmacy offers one-time prescriptions and ongoing medication needs through the Amazon app.

The platform provides delivery updates via text or email and offers Prime members in select cities—including New York City, Los Angeles, and Seattle—free same-day delivery.

The pharmacy accepts most major insurance plans, including Medicare Part D nationwide and Medicaid in select states.

Prime members benefit from additional savings through RxPass and other Prime-exclusive discounts, with potential savings of up to 80% on thousands of medications when paying without insurance.

PillPack services are free and include 24/7 access to pharmacists and monthly medication deliveries.

Amazon bought PillPack seven years ago for over $750 million, but it still hasn’t revealed how much money its Amazon Pharmacy business is making in its quarterly earnings.

According to Forbes, studies show that CVS Health CVS and Walgreens Boots Alliance WBA owned Walgreens control about 40% of the U.S. prescription drug market combined, while Amazon holds less than 1%. CVS and Walgreens do not share how many Medicare Part D prescriptions they fill.

Now, Amazon Pharmacy is adding features aimed at seniors to break into the fast-growing Medicare market, as more than 11,000 Americans turn 65 daily.

Most recently, Talkspace TALK, an online behavioral health company, collaborated with Amazon Pharmacy to simplify the pharmacy experience for Talkspace members and streamline medication management and adherence support for providers.

Talkspace members can fulfill prescriptions from their Talkspace provider through Amazon Pharmacy.

Price Action: AMZN stock is up 0.49% at $207.67 at the last check on Tuesday.

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