Now maybe the biggest benefit it can provide for med school admission is the opportunities it presents for an applicant if they win it that no one else gets.
The thing is awards that are valuable in themselves for med school admission purposes have criteria that are outside of what an ADCOM directly is evaluating you on or beyond the scope of their evaluation. For example, someone who wins an award at a research symposium for their poster has a valuable award where listing that alone can mean something. It shows their research capabilities were assessed to be top notch by people who spent far more time and had a much closer view of their project/understanding of the field. how they presented it and the work they did than an ADCOM who reads a short PI letter, and what the applicant has to say about it and has limited background in the field. Now, an ADCOM can start to gauge someone's research understanding and capabilities more once they grill them in an interview but most of the weeding out of applicants happens before the interview.
Note hopefully nobody is stupid enough to interpret this as poster presentation award>Rhodes scholar.