Does Amazon’s “RxPass” Qualify as a Medicare Part D Plan?

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Hello Toni,

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In September, I turn 65, with my Medicare beginning on September 1st. Recently, I read your article by Greg in Texas. He said that he had received the wrong information about enrolling in Medicare for those who are self-employed. I, too, am self-employed and need your advice about enrolling in Medicare Part D.

Currently, I am enrolled in Amazon Prime’s Pharmacy RxPass, and when I am eligible for Medicare, I can enroll in the Prime member’s Medicare senior plan for $5. Will this type of plan be the same as enrolling in a Medicare Part D plan? Please explain what I should do, as I’m on a fixed budget and cannot afford a Medicare penalty.

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Thanks for your help,
Abbie from Charlotte, NC

Hi Abbie,

In June of 2024, Amazon Prime began a special Pharmacy RxPass program with special discounted rates on prescriptions for those enrolled in Medicare. “Programs like RxPass help reduce cost, while increasing convenience for caregivers, and customers of all ages, which is shown to improve medication adherence and support better health outcomes,” John Love, Vice President of Amazon Pharmacy, was quoted as saying. “Amazon Pharmacy and Prime continue to offer new ways to save time and money at every step of your health journey.” Furthermore, the Amazon Pharmacy can be a convenient option for seniors, as it’s a virtual pharmacy that offers free home delivery and round-the-clock access to a professional pharmacist. You can shop for your prescriptions on the Amazon app, making it your convenient one-stop shop for all things retail and pharmaceutical!

However, this program is NOT classified as a Medicare Part D plan.

As much as I hate to break the news to my readers, Amazon RxPass is a prescription drug plan in the vein of GoodRx and Single Care, which offer less expensive prescription drug prices. Grocery store pharmacies like Walmart, Kroger, and Costco also have discount prescription drug plans. Amazon enlarged its marketing to include the 65 million Americans currently on Medicare and the 10,000 a day who are turning 65. Like you, Abbie!

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You must enroll in a Medicare Part D plan that covers the prescription drugs you’re currently taking. I would strongly advise you not to wait to enroll in a Part D plan during your Medicare Initial Enrollment Period (IEP), which begins 3 months before turning 65 and continues the month you turn 65 and 3 months after. If you don’t enroll in a Medicare Part D plan during your IEP, you WILL receive the Part D penalty that you, Abbie, are dreading.

The 2025 Medicare Part D costs are:

The average estimated monthly cost of Medicare Part D premiums is $46.50, according to Humana.
The Initial Coverage Deductible is up to $590 for 2025 and changes each year.
Initial Coverage has 5 drug tiers; the Part D plan pays its share of the cost of your drugs, and you pay your share until the amount of your out-of-pocket maximum is met. For 2025, $2,000 is the out-of-pocket maximum. Then you move into the Catastrophic Coverage stage and pay $0.
Donut Hole (Coverage Gap), effective January 1, 2025, no longer exists—which is great news for Americans!

Abbie, to enroll in a Medicare Part D plan—whether standalone or a Medicare Advantage with Part D included—you must open a Medicare.gov account, which has your Medicare information. More information about Medicare Part D is available in chapter 5 of Toni’s Medicare Survival Guide Advanced edition at www.tonisays.com.

Once you have opened your Medicare.gov account, you can go online and begin searching for your prescription drug plan by following these steps:

Click on “Find Health and Drug Plans.”
Verify your “extra help” (based on income) and list pharmacies you prefer.
Under “Your Drug List,” enter ALL of your drugs. Put your prescriptions in the system as a monthly quantity—not 90 days or 6 months—because of Medicare’s out-of-pocket maximum rule of $2,000. Using monthly rates lets you know when you will qualify for the $2000 out-of-pocket maximum and will no longer have to pay the deductible or copay for the rest of the year.
Click “Find Plans Now” to access Part D or Medicare Advantage plans for this year (or next).
Select which type of plan you wish to enroll in, either a Part C Medicare Advantage or Medicare Part D (stand-alone) plan. These plans will appear from the least to most out-of-pocket spent for the year.

What’s the difference between a Medicare Part D plan and a Medicare Advantage Plan with drug coverage?

Medicare can be confusing, and some might now be wondering: What’s the difference between a Medicare Part D plan and a Medicare Advantage Plan with drug coverage? Don’t worry—I can explain that, too!

Medicare Part D

Key facts:

Only covers prescription drugs (and some vaccines).
Varies by plan but typically includes out-of-pocket costs.
Available only to those who have Original Medicare.

Medicare Advantage Plans

Key facts:

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Medicare-approved plans that private companies offer.
Can only use doctors and hospitals participating in the plan.
Must have active Part A and B coverage.

Review your options carefully, Abbie, because with Medicare, what you don’t know WILL hurt you! Questions? Contact the Toni Says Medicare team at www.tonisays.com for immediate assistance or call (832) 519-8664. Toni’s new Medicare Survival Guide bundle is also available on our website!