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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.

The e-commerce titan said Wednesday it will now offer the popular membership program to Medicaid recipients for $5.99 a month, less than half the regular monthly price.

Amazon is seemingly shopping for new customers given that many upper-income consumers have already subscribed to Prime in the past.

Amazon has been offering discounts for holders of EBT cards since June.

With these discounted memberships, Amazon threatens to steal low-income customers from Walmart.

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

Currently, there are over 68 million people enrolled in the Medicaid program, with more than 50% of them being adults. Amazon does not report the number of prime members it now has.

Last summer, Amazon offered the discounted membership price to customers on other government assistance programs, including the Supplemental Nutrition Assistance Program (SNAP), and Women, Infants, and Children Nutrition Program (WIC).

Amazon's move may affect Walmart, who's favored by low-income customers. People can cancel the monthly membership anytime. But Sucharita Kodali, an analyst at Forrester Research, a market research company, said a recent survey of shoppers by her firm had found that a majority of American households with annual income over $100,000 had Prime accounts. Prime provides free same-day and one-day shipping, online streaming of thousands of movies and TV shows, unlimited photo storage and early access to select Lightning Deals. After a 6-month free trial, students pay $6.49 a month or $49 a year for Prime.

Amazon Prime is a great service for anyone who regularly does their shopping online, but at $11 a month or $99 per year (if you're willing to drop that much all at once), it can be an expensive extra. He mentioned Wendy, a single mom with four kids who lives in rural Missouri. "We couldn't be more excited about the response".

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