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The Street
The Street
Jeffrey Quiggle

Huge Amazon Change Affects Many Customers

Amazon (AMZN) has just released its new plan to separate itself from its competitors in a key area.

The new change, Amazon appears to believe, will help it win against CVS (CVS), Kroger (KR) and Dollar General (DG) in giving customers a break on prescription costs.

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"The online retailer claims its new advantage is tied to coupons on Amazon Pharmacy that will give it a decided edge simply because that new feature will automatically apply manufacturer-sponsored coupons directly to an eligible patient’s order," wrote ConsumerAffairs on April 14. 

Amazon sent an email to the publication explaining its new process for making the use of coupons easy.

"Amazon said that even though some drug manufacturers already offer coupons on brand-name medications to help reduce out-of-pocket costs for consumers, finding those discounts can be a headache unless patients know to ask and where to look," ConsumerAffairs wrote. 

"Plus, the process of using coupons can be tedious and confusing," the company continued. "Amazon Pharmacy is removing barriers like downloading forms, enrolling in programs, or calling drug manufacturers directly -- making saving money on medications seamless and easy. No clipping, clicking, or downloading."

Pharmacy benefit managers (PBMs) such as CVS Caremark are falling out of favor with consumers.

"CVS Caremark is the worst medication insurance experience I have ever had," claimed Daniel of Beverly Hills Calif., in his ConsumerAffairs review of the company. "They do their very best to avoid covering your prescription."

"I do think Amazon and Amazon Pharmacy are doing a good thing for consumers by offering competition on the 'cash pricing' front, similar to what Mark Cuban Cost Plus Drugs and many independent pharmacies across the U.S. also do," Monique M. Whitney, executive director of Pharmacists United for Truth and Transparency, told ConsumerAffairs.

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