Amazon is launching a low-cost version of its Prime subscription service on Tuesday, March 7, for millions of Medicaid recipients.

Medicaid is the public health insurance program in the United States specifically designed for individuals with low incomes. Amazon Prime's standard monthly fee currently sits at $12.99 after a recent price increase, but it's too much for low-income Americans.

Cheaper Amazon Prime For Medicaid Recipients

With this in mind, Amazon decided to slash Prime memberships to just $5.99 per month for Medicaid recipients. The cheaper subscription includes all of the perks and benefits of the regular Prime membership, including music and video streaming, and fast shipping for free.

The price cut for Medicaid recipients makes Amazon Prime more accessible for low-income individuals, as it's now more than half off the standard monthly fee. The lower rate follows Amazon's move from last year when it offered discounts for people with a valid Electronic Benefits Transfer card and get food assistance from the government.

The Amazon Prime membership program offers a number of perks and it plays a crucial role in Amazon's bid to get users to spend more on its retail site. Current Amazon Prime members are thought to be people with medium or higher incomes, but the new price cut for Medicaid recipients now opens the service for low-income individuals as well.

Budget-conscious individuals in the United States are generally shopping at Walmart, but the low-cost Prime membership for Medicaid recipients will allow Amazon to better compete against Walmart for this segment of the population.

What You Need To Know About Amazon Prime Medicaid Deal

According to Medicaid data, more than 68 million people were enrolled in the program at the end of last year, with adults making up a little over half of that. The discount for Amazon Prime memberships, as expected, applies only to adult Medicaid recipients.

Interested customers looking to take advantage of this hefty discount on Prime memberships will have to upload images of their Medicaid or EBT cards to prove that they are eligible. Amazon allows people to benefit from this price cut for four years, but they will have to prove their eligibility each year.

Amazon Prime aims to make it more convenient to shop online rather than going to physical retail stores, and it's proved to be a hit so far in numerous households nationwide, as well as abroad. The new discounts should help its growth even further, making it more popular among low-income Americans.

ⓒ 2021 All rights reserved. Do not reproduce without permission.