Amazon is offering discounted Prime to Medicaid recipients

Amazon is offering discounted Prime to Medicaid recipients

Last year, the company introduced the discount-Prime membership ordinarily costs $12.99 a month or $99 a year-by offering it to people who obtain government assistance with cards typically used for the food-stamp program, formally.

Starting Tuesday, people insured by the US government health system will be able to use Medicaid cards to qualify for a $5.99-a-month Prime tier. The new offer is valid for up to four years, Amazon told Reuters.

Amazon posted more details about the program on its blog, and you can check if you qualify for the Prime discount at this link.

Customers with Prime memberships are more lucrative for Amazon, according to a 2017 report from Consumer Intelligence Research Partners.

Inc. declined to say how many people signed up for Prime under the EBT card expansion, but Aaron Perrine, who oversees the program, says those that did sign up kept the service and were engaged Prime users.

"People that this opportunity are targeting are going to get that chance for the first time - and they may actually need it more".

The move vastly expands the number of people now eligible for that discounted rate, with about 35 million American adults enrolled in Medicaid, the public health insurance program for people with low income.

Of course, the discount on Prime is no big deal for Amazon.

The low-income customer segment has always been Walmart's forte, and the retailer has its own products geared toward them, like low-fee checking accounts and money services that can be done in-store. People can cancel the monthly membership anytime. But customers won't be able to share their Prime membership with a second adult, as with a regularly priced Prime membership. After a 6-month free trial, students pay $6.49 a month or $49 a year for Prime. The $5.99-a-month price compares to the regular $12.99 pay-by-month option and is almost $30 cheaper than the $99-annual-fee plan.

An Amazon Prime membership includes perks such as two-day shipping on more than 100 million products, unlimited photo storage and free online streaming of thousands of movies and TV shows. He said Prime has helped save her time and money by helping her skip some of those errands.

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