Amazon has announced significant cost reductions for its basic health care plan, impacting its U.S. fulfillment and transportation employees. The company will lower the weekly premium to $5 and reduce doctor visit copays to $5, changes that are part of a broader investment of over $1 billion in employee pay and benefits.
Key Takeaways
- Amazon's basic health plan weekly premium will decrease to $5, down from over $7.
- Copayments for doctor visits will be reduced to $5, a sharp drop from the previous $40.
- These changes are part of a larger investment exceeding $1 billion aimed at raising pay and lowering benefit costs for U.S. operations staff.
- Full-time employees continue to receive medical coverage starting on their first day of employment.
- Average total compensation for these roles, including benefits, is now reported to be over $30 per hour.
Details of the New Health Plan Costs
Amazon is making its foundational health insurance plan more accessible for its U.S. operations workforce. The weekly premium for the basic health care plan will be set at $5, a reduction of 28% from its previous cost of over $7.
In a more substantial change, the copayment for primary care doctor visits will be lowered to just $5. This represents an 88% decrease from the former $40 fee. The company confirmed that the level of coverage for employees and their families under this plan remains unchanged.
These adjustments will be available to employees during the upcoming Open Enrollment period this fall for their 2026 benefits package. The move aims to provide financial relief while maintaining consistent medical coverage.
By the Numbers
- New Weekly Premium: $5
- New Doctor Copay: $5
- Premium Savings: 28%
- Copay Reduction: 88%
Part of a Broader Investment in Workforce
The healthcare cost reduction is a component of a wider corporate initiative. Amazon is investing more than $1 billion to enhance compensation and benefits for its U.S. fulfillment and transportation teams.
As a result of these combined investments, the company states that the average total compensation for these employees now exceeds $30 per hour when elected benefits are included. This figure is a key metric the company uses to represent overall employee remuneration.
A long-standing policy at Amazon is its "Day 1" coverage for full-time employees. This benefit ensures that new hires and their families have immediate access to medical insurance without a waiting period, a practice that is not standard across all major employers.
Coverage Details Under the Enhanced Plan
While the cost is decreasing, the services covered by the basic health plan are not. The plan continues to cover preventative care, such as health screenings and immunizations, at no additional cost to the employee.
The new $5 primary care copay applies to a range of common medical needs. These include general office visits, pediatric care, and various therapies such as physical, speech, occupational, and mental health services. It also covers care for substance use disorders.
Eligibility and Plan Options
The basic health care plan is one of several options available to eligible employees. Amazon encourages staff to review all available plans to select the one that best suits their individual and family needs. Benefit eligibility can vary based on factors like work location, scheduled hours, length of employment, and employee classification, such as seasonal or temporary status. Some part-time and seasonal employees may become eligible for medical insurance after a 90-day period.
This structure is designed to make routine medical care more predictable and affordable, potentially encouraging employees to seek care earlier and more consistently.
A Wider Spectrum of Employee Support Programs
Amazon's commitment to employee well-being extends beyond standard medical, dental, and vision insurance. The company has established a comprehensive suite of benefits aimed at supporting employees through various life stages and challenges.
Family and Parental Support
For employees starting or expanding their families, Amazon provides significant paid leave. Birth parents are eligible for up to 20 weeks of paid leave, while supporting parents can receive up to six weeks. The company also offers family-building and fertility benefits, which it reports have been used by over 24,000 employees since their introduction.
Mental and Specialized Health Resources
Mental health is addressed through coverage options within its health plans and a dedicated Employee Assistance Program (EAP). The EAP offers 24/7 support and access to free, short-term counseling sessions for employees and their families.
For specific health crises, Amazon has created specialized support teams. The CARES team is a dedicated internal group that assists employees diagnosed with cancer in navigating their benefits, treatment, and recovery process.
"We offer comprehensive mental health support through our health plan options, as well as an Employee Assistance Program that provides 24/7 work-life support and free short-term counseling."
Other resources include an Expert Medical Opinion service for second opinions on complex diagnoses and Pelago, a confidential online clinic for substance use treatment. Furthermore, a 24/7 Medical Advice Line is available free of charge to all employees from their first day, regardless of whether they are enrolled in an Amazon health plan.
