The Truth About Amazon’s Really Cheap Generic Drugs – By Heather Tal Murphy (Slate) / Jan 28, 2023
And about Mark Cuban’s cheap generics, too.
Earlier this week, Amazon launched RxPass, a prescription drug service that costs Prime members $5 a month for as many eligible generic medications as they need. The announcement follows the unveiling, last January, of another novel prescription initiative, Cost Plus Drug Company, an online pharmacy developed by billionaire entrepreneur Mark Cuban. By cutting out middlemen, Cuban promises to offer many generic drugs for a fraction of the cost that other pharmacies charge. Both endeavors yank health insurance from the equation, allowing the process of buying prescriptions to feel a bit more like buying paper towels.
Because the average American spends around $1,300 a year for prescription drugs, more than people in any other country, and millions of Americans are underinsured, the announcements have generated lots of interest. Given that this is Mark Cuban, the larger-than-life investor extraordinaire of Shark Tank fame, and Amazon, the society-altering guilty addiction, it’s natural to expect that both endeavors will disrupt and deliver.
I reached out to a bunch of specialists in drug pricing to see what they thought. Most were quite tempered about just how revolutionary either project is. Here’s a look at why that is, how it’s possible for Cuban and Amazon to still make millions while charging so little, and some guidance on how to actually find the cheapest generics.
Let’s begin with Amazon. The company has maintained an online pharmacy for more than two years. What’s different about this new offering is that for a flat fee, you can obtain all the eligible generic prescriptions you need. Get your Lisinopril, a widely prescribed high-blood-pressure medication; your Estradiol, an estrogen hormone drug; and depression-treating Bupropion, the generic version of Wellbutrin, for just 5 dollars, including shipping! In order to participate, you must first have an Amazon prime account, something that currently costs $139 per year. Still, given that more than 200 million people are already Prime members this seems huge.
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