Amazon to slash Prime membership by 54% for Medicaid recipients: 4 things to know

Amazon is cutting its Prime membership fee by nearly 54 percent for Medicaid beneficiaries beginning March 6, The New York Times reports.

Here are four things to know about the discount.

1. Adult holders of Medicaid cards can become Prime members for $5.99 a month, compared to Amazon's standard $12.99 monthly fee. A Prime membership includes fast free shipping and video streaming, among other benefits.

2. Last year, Amazon started offering the $5.99 price to Americans with electronic benefit transfer cards, which hold aid for food purchases. Amazon spokesperson Julie Law told The New York Times Amazon is "very pleased with the response so far" in regard to the benefit transfer card discount.

3. More than 68 million Americans are enrolled in Medicaid as of the end of last year, according to Medicaid.gov. A little less than half of them are adults and would be eligible for Amazon's discount.

4. Analysts see the discount as Amazon continuing its push into Walmart's market. Walmart reflects an estimated 18 percent of yearly spending through the nation's food stamp program, the Supplemental Nutrition Assistance Program.

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