Amazon.com's pharmacy unit said 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 has worked to lure customers away from more established pharmacies like CVS and Walgreens since launching its pharmacy unit in 2020.

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With the expansion, Amazon 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 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.