For years, prescriptions have been a real pain for consumers, mostly due to hard-to-swallow prices and in- and out-of-network dance routines.
Recently, Amazon, CVS, Kroger, and Dollar General decided to change things and found themselves in a neck-to-neck race to be the most consumer-centric prescription provider. But Amazon has just made a move to keep its competitors in its tailwinds.
The online retailer claims its new advantage is tied to coupons on Amazon Pharmacy that will give it a decided edge simply because that new feature will automatically apply manufacturer-sponsored coupons directly to an eligible patient’s order.
In an email to ConsumerAffairs, Amazon said that even though some drug manufacturers already offer coupons on brand-name medications to help reduce out-of-pocket costs for consumers, finding those discounts can be a headache unless patients know to ask and where to look.
“Plus, the process of using coupons can be tedious and confusing. Amazon Pharmacy is removing barriers like downloading forms, enrolling in programs, or calling drug manufacturers directly—making saving money on medications seamless and easy. No clipping, clicking, or downloading,” the company said.
On top of the new coupon plus, Amazon has added “RxPass,” a new benefit for Prime members that allows them to access unlimited eligible prescription medications for just $5 per month, including free shipping.
PBMs could face new pressure
PBMs – pharmacy benefit managers like CVS Caremark, Walgreens, Express Scripts, and OptumRX – aren’t exactly consumer favorites. Over the last year, 95% of the ConsumerAffairs ratings for those four companies were 1-star – five points higher than a year ago.
“CVS Caremark is the worst medication insurance experience I have ever had,” claimed Daniel of Beverly Hills Calif., in his ConsumerAffairs review of the company. “They do their very best to avoid covering your prescription."
And PBMs are quickly falling out of favor with legislators. Recently, Ohio Attorney General Dave Yost called them modern "gangsters" and accused the industry of failing the consumer, saying their collective promise to be “middlemen” between those pharmacies and drug companies never saw the light of day.
But now that Amazon and others are moving onto the playing field, things could change for the better.
“I do think Amazon and Amazon Pharmacy are doing a good thing for consumers by offering competition on the 'cash pricing' front, similar to what Mark Cuban Cost Plus Drugs and many independent pharmacies across the U.S. also do,” Monique M. Whitney, executive director of Pharmacists United for Truth and Transparency, told ConsumerAffairs.
Whitney said Amazon Pharmacy could have some impact once consumers discover how inexpensive drugs can be without insurance, which they will when scrolling through the price list on Amazon Pharmacy.
"They'll demand answers, and I doubt very much the health plans and their PBM affiliates will be able to provide satisfactory answers defending their profiteering and revenue generation schemes,” she said.