Wal-Mart rolls out low-cost generic drug program to 14 more states

Wal-Mart Stores Inc. is expanding a program offering $4 prescriptions for some generic drugs to 14 more states, two weeks after rolling out the low-cost program in Florida, the world’s largest retailer said Thursday.
Wal-Mart held news conferences in states from Vermont to Alaska to announce the move as it speeds toward national coverage by the end of the year.
Wal-Mart first launched the program in the Tampa area two months ago, then expanded it to all of Florida two weeks ago in what it called an effort to save working Americans money on health care.
“Since we began the program in September, we’ve been committed to bringing it to other states as soon as possible,” Wal-Mart Chief Executive Lee Scott said in a statement.
Health care experts said any price competition is welcome but noted that generics are less of a burden to consumers than higher-priced brand-name drugs that are still under patent.
Critics, including rival non-chain pharmacies, said the plan covers only a fraction of a prescription drug market that includes about 8,700 generics approved by the FDA.
“This is a public relations stunt meant to drive foot traffic. Most people will find their prescriptions do not fall under the $4 plan,” said Charlie Sewell, senior vice president of government affairs at the National Community Pharmacists Association. The NCPA says it represents about 24,000 non-chain pharmacies.
Wal-Mart’s 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.
Walgreen Co., one of the nation’s biggest drug store chains, said it would not cut prices.
CVS Corp., based in Woonsocket, R.I., referred to a statement it issued when Wal-Mart began the Tampa trial. CVS said at that time that co-pays for most generics were already low and that the chain “has always provided its customers with very competitive pricing.”
It is the latest health care initiative by Wal-Mart since late last year, as the nation’s largest private employer seeks to deflect union-backed criticism of its worker benefits.
Union-backed WakeUpWalMart.com said Wal-Mart was just trying to deflect attention from criticism that it provides skimpy health care plans for its more than 1.3 million U.S. employees.
“Wal-Mart must address its own health care crisis, because the fact is all the low priced drugs in the world wont help the 775,000 Wal-Mart workers and families that are left cruelly uninsured,” WakeUpWalMart spokesman Chris Kofinis said.
Wal-Mart’s program was extended Thursday to the following states: Alaska, Arkansas, Arizona, Delaware, Illinois, Indiana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas and Vermont.