People On Medicaid Now Get Amazon Prime For $5.99

08 March, 2018, 01:28 | Author: Pamela Mathis
  • Amazon has been working to offer more services for lower-income shoppers including discounted Prime memberships and Amazon Cash.                  Getty Images

Like the discount for EBT recipients, this Medicaid discount brings the monthly cost of Prime down to $5.99 per month. For the same price of $5.99 per month, Amazon offers Prime memberships to any USA customer with a valid Electronic Benefits Transfer (EBT) card - the card that's used to disburse funds for assistance programs like Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Women, Infants, and Children Nutrition Program (WIC).

Almost 70 million people are enrolled in Medicaid, which provides health coverage to low-income people and those with disabilities.

Amazon Prime subscribers get a host of benefits from the e-retail giant, including free two-day shipping on most Amazon orders, free unlimited streaming of video and music, and occasional special discounts not available to non-members. In June, Amazon first introduced this discounted price for shoppers who receive government assistance in the form of an Electronic Benefits Transfer card. In the end, selling discounted Prime subscriptions to low-income families and students could very well be a big win for Amazon.

Finally, as Reuters points out, there may be an additional motive behind Amazon's push for Medicaid members.

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The move could also help Amazon siphon customers from Walmart, a major competitor that's focused for years on providing services for lower-income customers. Amazon doesn't say how many Prime customers it has, but market research company Forrester Research says that the majority of American households with annual income over $100,000 already pay for a Prime subscription. The report found that there are 85 million Prime members in the USA, spending an average of around $1,300 a year compared to $700 for non-Prime shoppers.

Amazon said it's offering the promotion for up to four years.

"I think customers that have tried this plan have seen enormous value from it", he added.

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