Amazon Care signs its first employer customer

·1 min read

Amazon's virtual primary care business Amazon Care has positioned itself as an attractive provider for app-based care within the highly competitive telehealth market, according to an analysis from eMarketer.

Driving the news: Amazon Care landed its first employer customer, Precor. It will charge the fitness equipment manufacturer based on how many employees use its services each month, Insider first reported.

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The big picture: Employer health care costs continue to climb year after year. Some companies believe the long-term investment of virtual care post-pandemic may be the answer to reduce costs.

  • Nearly 90% of corporate executives surveyed by the Kaiser Family Foundation said they don't believe the cost of health benefits will be sustainable over the next five to 10 years.

  • That's why Amazon Care's pay-per-user model may be an appealing option for larger employers that pay a fixed cost based on the size of their workforce, per the analysis.

How it works: Precor's 800 employees would be able to use the services and the company would be only charged when the service is actually used.

  • Amazon also announced it would expand Amazon Care to all its employees nationwide by this summer.

What to watch: It's possible Amazon may eventually sync Amazon Care with its other health care ventures to fuel growth like Amazon Pharmacy, Amazon HealthLake or its HIPAA-compliant Alexa, eMarketer notes.

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