How Amazon Care's pay-by-usage model targets big employers

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As employers look to curb their share of increasing healthcare costs, many may be attracted to healthcare offerings that charge them based on how many employees actually use the service, according to a May 6 report from eMarketer.

Amazon Care, the tech giant's virtual healthcare business, on May 5 gained its first enterprise client, fitness company Precor. Amazon launched the virtual care offering in 2019 as a way to decrease the high cost of insuring Amazon employees. Amazon Care's pay-by-usage model could attract more large employer customers because it offers them less risk and upfront cost commitments. 

The amount Amazon Care charges employers is based on how many employees use its healthcare services each month, rather than fixed costs based on how many services are offered and the employer's number of employees, meaning companies don't have to pay an upfront fee based on their size.

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