Amazon will invest $1 billion to lower healthcare costs for full-time employees in its basic health plan, the company said Sept. 17.
The retail giant will lower the weekly cost of the plan from more than $7 to $5, while maintaining its “Day 1” coverage policy for U.S. fulfillment and transportation employees and their families. In addition, Amazon will reduce co-pays for primary care visits to $5, down from $40.
On average, employees are expected to save 28% on weekly premiums and spend 88% less when visiting a physician, according to a Sept. 17 news release.
These changes will take effect during the 2026 benefits cycle.
Amazon’s move signals intensifying competition among insurers and large employers to deliver more affordable benefits and may raise expectations for plan design, pricing and member experience. The move also highlights employer-sponsored plans’ growing role in shaping cost-sharing structures and access across commercial markets.
