Hims & Hers drops 17% as Amazon rolls out expanded telehealth service

Shares of telehealth services provider Hims & Hers (NYSE:HIMS) fell 17% in morning trading Thursday after Amazon (NASDAQ:AMZN) announced it was launching an expanded pay-per-visit telehealth service, Amazon One Medical.

Amazon said the newly revamped service, formerly known as Amazon Clinic, will offer consultations for more than 30 medical conditions, such as sinus infections and influenza, with on-demand messaging visits costing $29 and video visits $49.

Users will be able to fill any prescribed medications through either Amazon Pharmacy or another pharmacy of their choice, according to Amazon’s website.

The telehealth service will also be able to provide medications and treatments for medical conditions and wellness concerns such as men’s hair loss, acne, erectile dysfunction, eyelash regrowth and aging skin. Pay-per-visit services are only available for people aged 18 to 64 who are not covered by Medicare or Medicaid.

Amazon Prime members will also be able to get treatments for several common conditions at a low monthly flat rate, such as $16 per month for hair regrowth and $19 per month for erectile dysfunction.

Customers will pay only for the consultation and medication, with no additional costs such as subscription fees. Prime members can also get their medications shipped for free, often within hours of their being prescribed.

Amazon One Medical and Pharmacy will accept insurance for many services, but not for telehealth visits. Customers will also not be able to use their insurance plans if they order medications using the Prime Rx discount.