Amazon Pharmacy targets Medicare seniors to compete with CVS and Walgreens

In the United States, Amazon Pharmacy is progressing with new initiatives to attract senior citizens who are covered by Medicare’s drug benefit, an area largely dominated by CVS Health and Walgreens. Recently, Amazon introduced a caregiver support feature that enables customers to assign someone else to manage their medications for them. This feature aims to cater to the growing demographic of elderly Americans and their caregivers, with statistics indicating that over 50 million individuals in the U.S. are currently caring for aging family members. Amazon's investment into pharmacy services follows its acquisition of PillPack, which occurred seven years ago for over $750 million. Despite Amazon's efforts, its pharmacy revenue generated less than $2 billion in 2024, which constitutes a mere 0.3% of the overall prescription dispensing market, as reported by Drug Channels Institute. The lack of disclosed financial information regarding Amazon's pharmacy and healthcare sectors poses challenges in assessing the company's growth and market performance in this segment. In comparison, CVS Health reported that it filled 435 million prescriptions in the first quarter of 2025, reflecting an increase of 4.3% from the previous year. Walgreens also overseen a rise in their prescription fills, with more than 309 million recorded in their most recent quarterly report, showcasing a 3.4% increase. These statistics demonstrate the significant pharmacy revenues generated by CVS and Walgreens—amounting to over $370 billion combined in the previous year. Senior citizens represent a crucial demographic for pharmacy services, particularly considering that more than 11,000 Americans are reaching the age of 65 daily. Furthermore, industry research indicates that a substantial portion of the elderly population struggles to adhere to prescribed medications, either due to forgetfulness or lack of support. Amazon, recognizing the unique needs of both seniors and their caregivers, aims to streamline medication management solutions—highlighting its commitment to improve the health outcomes of this vulnerable and growing segment of the population.