Amazon offers a discounted Prime membership for folks on Medicaid

what is amazon key prime day packages 720x720

It’s been a little over a month since we learned of Amazon’s joint efforts with Berkshire Hathaway and JP Morgan to disrupt healthcare and now the online retailer is making another big move in the space. On Wednesday, March 7, Amazon announced that it would offer Amazon Prime memberships at an almost 50 percent discount for those on Medicaid. This comes a year after the company offered the same discount to folks who receive government food benefits.

Beginning today, individuals who qualify for Medicaid will also qualify for a lower price on Prime memberships. Whereas the standard cost is $13 per month, those on Medicaid will be able to take advantage of the two-day shipping service (along with other perks afforded by Prime) for $6 a month. There is no annual commitment required, and the discount stands for up to four years. While it doesn’t appear that there is a yearly discount option, the total cost for a one-year membership to Prime is still $27 cheaper than the standard annual Prime rate of $99.

As USA Today reports, the decision is “part of a concerted effort” from Amazon “to gain more market share among low income consumers and those without access to traditional banking and credit.” While 82 percent of American households with incomes of more than $112,000 a year are Prime members, that figure drops to 52 percent among households with incomes of between $21,000 and $42,000. And pulling folks onto Prime is key to Amazon’s success. According to Consumer Intelligence Research Partners, Prime subscribers spend nearly $1,000 more on average at Amazon than non-Prime customers.

“This is just about our customers and our members and giving them the best of Amazon with an incredible selection of benefits. We’re really customer-focused and not competitor-focused,” Aaron Perrine, program leader for Amazon’s Prime Lifestages group, said in a statement. “It’s certainly the case that we’re hoping to create some lifetime Prime members here.”

The move could also allow Amazon to compete with physical retailers like Walmart, which tend to perform better among lower-income groups. As Avi Greengart, an industry analyst with GlobalData, told USA Today, “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. People that this opportunity are targeting are going to get that chance for the first time — and they may actually need it more.”

Smart Home

Amazon drops price of Panasonic’s Beard and Body Trimmer by a whopping 40%

Amazon is offering a 40% off deal on Panasonic's ER-GB80-S beard and body trimmer, which boasts stainless steel blades -- perfect for those with allergies -- set at a 45-degree angle to ensure the best cut.
Smart Home

Walmart vs. Amazon: Which has better prices, shipping, and customer service?

Both Walmart and Amazon have their good points and bad, and we compare the two online retailers side-by-side. Where's the better place to shop online, Amazon or Walmart? Let's find out.
Deals

The best Amazon Prime Day 2019 deals: Everything you need to know

Amazon Prime Day 2019 is still a few months off, but it's never too early to start preparing. We've been taking a look at the best discounts from previous Prime Days to give you our predictions of what to expect this year.
Smart Home

Amazon encourages its workers to quit and start their own delivery companies

Amazon is offering $10,000 and three-months pay to any of its workers who quit their job and set up their own business delivering packages for the company. Assistance, training, and other perks will also be provided.
Smart Home

Let a robot do your chores! Here are the best robot vacuums for 2019

Robot vacuums are a convenient way to tidy up your home and minimize your weekly to-do list. From a top-of-the-line model to a handy budget option, here are the best robot vacuums you can buy right now.
Smart Home

Alexa Guard: Everything you need to know about the home security feature

What exactly is Alexa Guard and what can it do? What are its limitations? How do you set it up? We have the answers to all of these questions about the feature in this handy guide.
Mobile

5G your old phone: HTC’s 5G Hub is now available for pre-order from Sprint

HTC almost made a phone. The HTC 5G Hub runs Android 9 Pie, has a Qualcomm 855 processor with the X50 modem, 4GB of RAM, and an HD touchscreen -- but it's a hot spot designed to connect to 5G networks.
Smart Home

Sale at Microsoft Store knocks 20% off Samsung SmartThings devices

Looking to make your home even smarter? Samsung SmartThings is the electronics manufacturer's smart home hub, sensor, and most recently a decent mesh Wi-Fi router system, and everything's on sale for 20% off at the Microsoft Store at the…
Smart Home

Nest Hello vs. Ring Video Doorbell Pro: Which is better for you?

Video doorbells provide added peace of mind. You can catch porch pirates in the act, your kids throwing a party, or a prowler roaming around your driveway. We compare two video doorbells: The Nest Hello vs. The Ring Video Doorbell Pro.
News

Kwikset’s second-generation deadbolts get smarter and safer

Kwikset introduced the second generation of its Signature Series Deadbolt with Home Connect locks, which feature a more compact design and an improved chipset that offers over-the-air security updates.
Smart Home

Cleanyst imagines a new mix-at-home paradigm for cleaning products

Cleanyst is a home-mixing system that combines pre-manufactured pouches with your at-home water to create all kinds of cleaning products via an eco-friendly home device that eventually pays for itself.
Music

B&H bundles Bose SoundTouch 10 and Amazon Echo Dot in smart speaker deal

The Amazon Echo Dot and the Bose SoundTouch 10 Wireless Music System are some of the best smart speakers in the game. Save $50 at B&H when you bundle both together, and upgrade your audio experience today.
Deals

Looking for a smart speaker? Grab the first-generation Echo Show for only $90

Looking for a video-enabled Alexa device, but those high price tags scare you? If you don't mind the less sleek look of the first generation Echo Show, then Woot's latest electronics deal is one you don't want to miss: they're brand new…
Smart Home

Grab a free upright vac to go with your Shark Ion robot vacuum

For those who haven't started spring cleaning, Shark's latest vacuum deal lets shoppers get hands on an ION Robot Vacuum and a regular vacuum too.