Wal-Mart to expand drug program to Illinois
Thursday, Oct 19, 2006 - Posted by Rich Miller
This should shake up the Wal-Mart debate a bit.
Wal-Mart Stores Inc. is expected to announce today it is expanding a program offering $4 prescriptions for some generic drugs to 14 more states, including Illinois, two weeks after rolling out the low-cost program in Florida. […]
Wal-Mart launched the program in what it called an effort to save working Americans money on health care. Critics said it was a stunt to draw in business and a grab for a bigger share of the drug business.
The Florida plan covers a month’s supply of 314 prescriptions. That number is made up of 143 drugs in a variety of dosages and solid or liquid forms.
At the time of the Florida announcement, Minneapolis-based Target Corp., the country’s No. 2 discounter behind Wal-Mart, said it would match its rival’s lower prices in Florida.
Deerfield, Ill.-based Walgreen Co., one of the nation’s biggest drug store chains, said it would not cut prices.
What do you think?
- Truthful James - Thursday, Oct 19, 06 @ 8:38 am:
Perhaps some knowledgeable people can clue me in, but I heard that the $4.00 price is for a 30 day supply. Most doctors write continuing use prescriptions as 90 days plus three refills. My program enables me to get the 90 days worth for $9 dollars at Walgreens, Other prescripts are $12, for 90 days.
As I understand it there are only certain drugs included in the Wal-Mart plan and the doctor has to permit genereic substitution.
If this is correct, the Wal-Mart program rolls back prices only for the uninsured. and gives them an equivalency to the second tier drugs.
I don’t believe they are losing money, especially because most people will walk out of the store having spent money on other products.
- North of I-80 - Thursday, Oct 19, 06 @ 8:40 am:
It is great. For those who hate Walmart and what it offers - successful capitalism - this must be tough to digest. It’s hard to convince your constituents that Walmart’s success comes at the expense of the little guy when they do this. stomach. Many are busy hating Walmart
- BIG R.PH - Thursday, Oct 19, 06 @ 8:41 am:
All this is a publicity stunt by Wal-Mart. Their pharmacies cannot compete with Walgreens when they stand side-by-side.
Why? As a competitor of both I would say convenience and drive-thru’s.
The other questions you have to ask yourself about Wal-mart’s actions:
1) If it costs $10 to fill the prescription (Overhead, staff salaries etc.) Why are they only charging $4. Are they using pharmacy as a loss leader.
2) With over 11,000 prescription drugs available how much have they raised the price on 10,700 to cover the lowering of 300?
3) Why are they saying 300 drugs when over 100 are just different strengths of the same drug?
4) With over 95% of the people in the U.S. having some kind of coverage (i.e. Insurance, medicaid, Medicare D, discount Cards thru Farm Bureau etc) why would you want to limit your reimbursement. All that will happen is the giant PBM’s (Medco, Caremark, Express) will clamp down on the reimbursement for the 95% while on the 5% cash customers will benefit.
The whole thing fits the current leadership in Illinois. A lot of fluff and no substance.
Go Cards!! We haven’t done it the easy way all year so why start now!
- RBD - Thursday, Oct 19, 06 @ 8:41 am:
I have a friend who buys a month’s prescription of something common at the Walgreens in the Lakeview section of Chicago (north lakefront) for $30. She was shocked to discover that Walgreens charged, for the same prescription, almost $90 both in the Loop and in the suburbs. Her pharmacist’s explanation: Lakeview customers are price shoppers and there is a CVS down the street.
Obviously there are CVS and other competitors near Walgreens everywhere. What is different is the customer base. I expect that Walgreens will be price competitive with Wal-Mart where (but only where) their customers care. The press and advertising by Wal-Mart, etc., may make more customers aware of the prices.
(And I bet there are unintended consequences that we won’t like even though it seems like a good thing overall.)
- bored now - Thursday, Oct 19, 06 @ 8:47 am:
good for wal-mart. now if they could just start treating their employees like human beings (and pay them for all the time they actually work)! that’s not too much to ask, is it?
- OleProf - Thursday, Oct 19, 06 @ 9:03 am:
Here’s the thing, some generics have extremely low wholesale costs…e.g. $9.00 per 1000 tablets.
The “real” cost of such a prescription is in the overhead. Some retailers will subsidize the Rx prices in the hopes of snagging consumers with merchandise where they make a real profit.
The $4.00 Rx is just a gimmick….any pharmacy can do the same. Wal-Mart has a strategy to make, not to lose money with this ploy.
- Petey - Thursday, Oct 19, 06 @ 9:04 am:
Walmart is evil.
May I suggest buying your drugs from a ‘mom-and-pop’ pharmacy that doesn’t have this pricing power?
- jerry - Thursday, Oct 19, 06 @ 9:11 am:
It seems like predatory pricing to assault existing drug store providers while trying to get positive press.
We need to lower the cost of prescriptions in this country, but this isn’t the way. Wal-Mart appears to be violating dumping and predatory pricing laws here, but don’t expect this justice department to do anything.
- capitol view - Thursday, Oct 19, 06 @ 9:48 am:
for what it is worth, I heard on local “talk radio” this morning that many of the discounted drugs are ones that have been around for 30-40 years, and there is little call for them, anymore. Newer drugs are being recommended by physicians. Some or many may work almost as well as the newer ones, but they are collecting dust on the shelves of pharmacies and in drug company warehouses.
- Ryan - Thursday, Oct 19, 06 @ 9:54 am:
WalMart continues to give back to the community, good for them.
- NW burbs - Thursday, Oct 19, 06 @ 10:35 am:
Two questions (ok, really four):
1. Why does Wal*Mart need to have these generic drugs produced in India? (American Pharmaceuticals here in Illinois is a generic drug producer… Couldn’t these jobs be kept in the States?)
2. How is it ok for Wal*Mart to import drugs manufactured in India but it’s not ok for American citizens to reimport drugs that were manufactured in the States but shipped to Canada?
…Could it be because the Waltons are such good Republican donors?
- RePete - Thursday, Oct 19, 06 @ 11:35 am:
Don’t like the pay at Wal Mart, don’t work there…seems pretty simple to me.
Don’t like what Wal Mart does, don’t shop there.
NW, when the Democrats take back the House and Senate, I will look for them to allow drug imports from Canada.
- steve schnorf - Thursday, Oct 19, 06 @ 11:55 am:
Hatred clouds the quality of your reasoning.
- Truthful James - Thursday, Oct 19, 06 @ 12:03 pm:
Still need an answer to my original question — is it $4.00 for a 30 day or a 90 day supply?
- SUZY Q - Thursday, Oct 19, 06 @ 12:08 pm:
Can enyone tell me where I can get a list of the $4.00 prescriptions? Are these prescriptions only for those who have no insurance?
- Squideshi - Thursday, Oct 19, 06 @ 12:51 pm:
This is classic Wal-Mart–undercut your competitors, selling products and services at a loss, until you drive them out of business, then once the competition is eliminated, raise the prices. I would hardly call this successful capitalism–more like anticompetitive practices.
- Capitalist - Thursday, Oct 19, 06 @ 12:54 pm:
Wow squideshi, Wal Mart wants to be successful and beat their competition? SHOCKING!!!!
- steve schnorf - Thursday, Oct 19, 06 @ 1:05 pm:
I don’t think Walgreens is in any great danger.
- VanillaMan - Thursday, Oct 19, 06 @ 3:21 pm:
See Mr. Blagojevich?
You don’t have to sell our fiscal future down the river to get inexpensive pharmaceuticals to Illinoians.
Wake up fools. It is a new era. Hoping that some government will wipe your butt was always a fool’s dream. Socialism is dead. Get over it.
Go Wal-Mart!
- OAD - Friday, Oct 20, 06 @ 12:42 am:
“Hoping that some government will wipe your butt was always a fool’s dream.”
Hoping a corporation will do it is about as foolish.
At the end of the day, it doesn’t matter if the boot on your neck is from corporate or from the government. What matters is that there is a boot on your neck.
You corporate fetishists need to come to grips with yourselves.