Amazon offers Medicaid recipients discounted Prime memberships

Amazon offers Medicaid recipients discounted Prime memberships

Amazon offers Medicaid recipients discounted Prime memberships

Amazon announced Wednesday that it will offer a low-priced version of its Amazon Prime membership program to qualifying Medicaid recipients.

To qualify for the discounted rate, customers must have a valid Medicaid card or Electronic Benefits Transfer (EBT) card.

Regardless of the larger retail battles being waged, are cheaper $5.99 Amazon memberships actually a good deal for poor people?

Amazon Prime memberships are now available at the special price of $5.99 per month for tens of millions of American consumers. When you consider the included subscriptions to Amazon Video and Music, this could also help those receiving government assistance save money in other areas, which is never a bad thing.

In the end, selling discounted Prime subscriptions to low-income families and students could very well be a big win for Amazon.

"The ability to order things online and have them shipped directly to your door within a quick time frame, people in higher earning demographics have long seen this as a convenience that changes the way they shop", Avi Greengart, an industry analyst with GlobalData, told USA Today.

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

Amazon's move may affect Walmart, who's favored by low-income customers. Such cards are typically made available to US residents who receive funds from government assistance programs like Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP) and Women, Infants, and Children Nutrition Program (WIC).

Prime gives customers free two-day shipping and other perks like free video streaming and access to the Prime Now two-hour delivery service. There is no annual commitment and customers can cancel the membership at any time.

Perrine said his company spoke with customers who enrolled in discounted Prime to get a better idea of how people use the service. The Prime promo price is only available to adult Medicaid cardholders.

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