3 Ways Amazon’s Healthcare Could Save You Money (And 2 Ways It Could Cost You More)
Written by
Terence Loose
Edited by
Amber Barkley
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Amazon has become the go-to online shopping mall for everything from dog food and doorknobs to bedding and bestsellers for every budget. So perhaps it was only a matter of time before the site got into the healthcare space.
And at first look, Amazon’s One Medical might seem like a great deal. Memberships begin as low as $9 per month or $99 per year for Prime members and $199 per year for everyone else. Or, you can skip the membership and pay $29 for message doctor visits or $49 for video visits.
With the average health insurance premium for single coverage in 2024 hitting $8,951 per year, according to leading health policy organization KKF, Amazon’s One Medical might seem revolutionary. But closer examination is prescribed.
Next, learn what you should be spending on now to save on healthcare costs later.
Ways You Could Save
One Medical could be a money-saver under specific circumstances.
You’re Young and Healthy
As its website states, Amazon’s One Medical is designed to help with 40-plus common conditions, such as flus and colds, allergies, skin issues, minor cuts, eye issues and the like. So, if you are young and healthy and rarely go to the doctor, this could save you time and money on visits for routine care, said Neal K. Shah, chairman of Counterforce Health, a company that helps people fight insurance claim denials.
“A $199 yearly membership might actually save you some money, thanks to the instant virtual care and same-day appointments,” said Shah. “I imagine this is perfect for young and healthy urbanites who place a high premium on their time and might otherwise pay something close to the $199 for the kinds of care and appointments that this service makes available.”
As a Supplement
Amazon’s One Medical works with insurance. In other words, prescriptions and more involved visits can be billed through your regular insurance, if you have it. And that is where One Medical could be a benefit.
“I’d think of it as a supplement, not a replacement. If you need a prescription refill or you’ve got a minor issue like a rash or a sore throat, it makes sense,” said Riley Beam, managing attorney at Douglas R. Beam, a personal injury law firm that deals with insurance companies daily. “You don’t have to drag yourself to a doctor’s office. You can hop on Amazon’s virtual care, get a quick consult and have your meds shipped to your door.”
Prescriptions
Even for those without health insurance, Amazon’s pharmacy service offers discounted meds, home delivery and a 24/7 on call pharmacist. Amazon offers deep discounts from retail rates on many medications for a $5 per month membership for Prime members. This could save you some money, said Beam.
“Their pharmacy discounts can save you a decent chunk of change if you’re paying out of pocket for meds,” said Beam. He added that Amazon’s quick consultations and home delivery could save you time and money.
Ways You Could Lose Money
With the benefits come the risks, and they could be substantial. Here’s how One Medical could cost you more than you save.
Major Medical Events
Life is unpredictable. So even if you are young, healthy and follow a great diet and exercise routine, accidents and major illness can still strike. If One Medical is your only healthcare, it could be financially disastrous, said Beam.
“This is where things get scary, because Amazon’s healthcare isn’t designed to cover major medical events,” he said. “If you’re in a car accident and need surgery, or if you get diagnosed with something like cancer, you’re going to need serious coverage — hospital stays, specialists, treatments, the whole nine yards.”
Considering that, according to the most recent data available from KFF, one day of hospital care averages $3,025 as of 2022, relying solely on One Medical could be a very costly decision.
“So it’s very possible that you could end up bankrupt. It’s not worth the risk,” said Beam.
Pre-existing Conditions
If you have a pre-existing condition that requires regular visits to specialists or uncommon medications, One Medical is probably not going to help a whole lot. You need more robust insurance.
“The reality check is that it is not a replacement for your health insurance — don’t make this costly mistake,” said Shah. “It won’t help with the really big stuff.”
Beam advised making sure you compare apples to apples. “Anyone with pre-existing conditions, chronic illnesses or a family history of serious diseases should steer clear,” he said. “At the end of the day, it’s a limited healthcare plan, and you won’t be covered adequately.”
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