June 18 (Reuters) - Amazon.com's ( AMZN ) pharmacy unit

said on Tuesday it is expanding eligibility for its monthly

subscription service, which covers a range of generic drugs, to

those enrolled in government-backed Medicare insurance plans.

Amazon ( AMZN ) has worked to lure customers away from more

established pharmacies like CVS and Walgreens

since launching its pharmacy unit in 2020.

With the expansion, Amazon ( AMZN ) said over 50 million more people

will be eligible to use the service, known as RxPass, which was

launched for U.S. Prime members in January 2023 and is priced

at$5 a month.

The subscription gives access to 60 eligible generic

medications, 24/7 access to a pharmacist and free doorstep

delivery of treatments for Prime members. Through RxPass, Amazon

Pharmacy offers up to 80% off the cost of generics and up to 40%

off the cost of brand name medicines for members with or without

insurance.

U.S. spending in the Medicare program for people over the

age of 65 and the disabled is projected to have grown by 8.4% to

over 1 trillion in 2023, according to federal government data.

"Programs like RxPass help reduce cost, while increasing

convenience for caregivers, and customers of all ages, which is

shown to improve medication adherence and support better health

outcomes," said John Love, Vice President of Amazon Pharmacy.

RxPass could help reduce Medicare spending by nearly $2

billion annually and help lower out-of-pocket costs for older

adults, Amazon ( AMZN ) said.

Medicare plan members who require one RxPass medication

could save about $70 a year, while those taking two or more

could save more, the company said.