How Amazon Could Disrupt Health Care

From the creator

Amazon has been described has the “everything store, ” but it’s missing one major category - prescription medicines. That might soon change, in the wake of Amazon’s roughly $1 billion acquisition of PillPack, an internet pharmacy. Health experts told CNBC that it’s only a mater of time before Amazon starts selling prescription drugs on its online marketplace, and that it’s assembling a team to do just that. For Amazon, pharmacy represents a multibillion market opportunity, but it’s also highly complicated and will involve battling with some entrenched competition that has a vested interest in keeping drug prices high. But Amazon, with its scale, leverage, and supply chain expertise, could be the company to do it, the experts said. People buying medical supplies on Amazon, such as glucometers and cold medicine, can now use their flexible savings accounts or health savings accounts to get discounts. These programs, often referred to as an HSA or FSA, allow people with health insurance to set aside a portion of their salary before taxes to cover medical expenses that would have been paid for out-of-pocket, such as prescription medicines and medical supplies. In a statement to CNBC, Amazon said it’s “excited to announce” the feature, which allows buyers to use their HSA or FSA debit cards towards eligible purchases. “Customers now have the flexibility to use FSA/HSA cards on a wide range of eligible over-the-counter purchases, eliminating the need to pay out-of-pocket or

Published 2019-04-10 · Watch on YouTube ↗
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