Sesame, a direct-payment healthcare marketplace, has added an online pharmacy to its platform with prescriptions starting at $5 with free delivery.

The new service is called SesameRx and features nearly 200 FDA-approved generic medications for conditions such as allergies, depression, diabetes, high blood pressure, ADHD, insomnia and more.

To create the new platform, Sesame partnered with digital pharmacy Truepill. It leverages Truepill’s URAC-accredited healthcare infrastructure to deliver a full-service pharmacy experience to consumers.

Besides its new pharmacy service, Sesame’s online marketplace gives consumers access to a range of telehealth offerings, from COVID-19 screenings to mental health consultations to dermatology appointments and more all for as little as $25 nationwide.

To qualify for the $5 prescriptions through SesameRx, patients must complete a consultation with one of Sesame’s healthcare providers. During the appointment, the provider will issue a prescription for the relevant condition.

SesameRx does not require insurance to receive the $5 drug price for initial fills as well as refills. Once the prescription is filled, it will be delivered directly to the patient’s doorstep.

WHY THIS MATTERS

It’s no secret the U.S. has a prescription drug spending problem. A Commonwealth Fund study from 2017 shows that the U.S. spends significantly more per capita on prescription medication than any other high-income country – roughly $230 more per capita than the second highest-paying country in 2015.

On the whole, the U.S. spent $369.7 billion on prescription retail medications in 2019, according to JAMA Health Forum. This represents a 5.7% increase from the year before and is only expected to get worse. For example, retail drug spending is projected to reach $560 billion in 2028.

It’s no surprise then that two-thirds of consumers say they pay too much for their prescription medications, according to a survey conducted by Scripta Insights. In response to the high prices, 71% of consumers said discount pharmacy services, like Sesame's, are helping to solve the high cost of prescription drugs.

THE LARGER TREND

Digital pharmacies are on the rise, and a number of them have scored huge investments as of late. Capsule raised $300 million in April, and Alto, Medly and Truepill all closed funding rounds in 2020.

Amazon, which purchased virtual pharmacy PillPack in 2018, rolled out an online pharmacy service late last year with special deals for Prime members.

GoodRx, an online pharmacy platform for low-cost prescriptions and price comparisons, is another competitor in the space. The company filed to go public last August, making it one of the few companies to be profitable before filing.

ON THE RECORD

"Sesame is changing the healthcare buying experience by making it 'radically normal,'" David Goldhill, cofounder and CEO of Sesame, said in a statement. "SesameRx extends that mission to the pharmacy. Shopping for healthcare, including prescription drugs, should be as easy as booking travel online. Convenience and choice with understandable, transparent prices."