Relief for Some but Maybe Not Many in Wal-Mart Plan for $4 Generic Drugs

[Omaha Steve]

http://www.nytimes.com/2006/09/22/business/22generic.html?_r=1&oref=slogin

Relief for Some but Maybe Not Many in Wal-Mart Plan for $4 Generic Drugs

By MICHAEL BARBARO and REED ABELSON
Published: September 22, 2006

At first glance, Wal-Mart’s plan to sharply cut the cost of generic drugs, to $4, seems like a signal event in American health care. It could make scores of treatments affordable to the uninsured, reduce the burden on Medicaid and bring competitive pricing to the pharmacy industry.

Even company critics have praised the plan, conceding that it represents a case of the giant retailer using its size and ability to wring out costs to improve the lives of regular Americans.

But a close examination of the program, with details confirmed by the company yesterday, suggests that its impact could be blunted by several factors.

The plan, which is said to cover 300 drugs, includes only about 124 separate medicines in various dosages, like 12 versions of the popular antibiotic amoxicillin. It leaves out some popular drugs altogether, like the generic version of the cholesterol-lowering treatment Zocor.


Ron McCormick, manager of a Wal-Mart pharmacy in Tampa, Fla. The store and others in the area are the test market for the company’s lower-cost prescription plan for generic drugs

And while uninsured people should benefit from the program, those with insurance may save only a dollar or so, making a trip to Wal-Mart not worth their while, analysts said. In Florida, where the program will have its debut, most people on Medicaid pay nothing and may have little incentive to shop around for cheaper prescription drugs.

“It is not as significant as it first seems, in our opinion,” said Joseph Agnese, an analyst at Standard & Poor’s, who expressed surprise at investors’ reaction to the Wal-Mart announcement, which sent shares of its competitors CVS and Walgreen down sharply yesterday.

FULL 2 page story at link above.

[oldboy101]

1. This is still a boon for the uninsured

To criticize WalMart's plan because it does little to help people who already have insurance or who are on MedicAid misses the point entirely. This will be a lot of help to people who are uninsured, including WalMart's own part-time employees who may not yet qualify for health insurance.

Also to say that it does not cover ALL generic drugs is misleading too. For example it is stated that the new generic for Zocor is not covered, yet. This generic, Simvastatin, only recently became available. However I would point out that there IS a generic statin drug available to control high cholesterol, namely Lovastatin.

[Omaha Steve]

2. Is Lovastatin on the list?

We need to see the full list of the covered drugs.

[patricia92243]

9. I tried looking on their website and could not find anything. Do you know

where a list of covered drugs might be???

[madrchsod]

3. i have no idea where these drugs will come from

the government will not allow drugs from canada but they will let walmart buy from where? hmmm can you sat india? the walmart house brands are made in india.no thanks

[oldboy101]

7. Wrong, WalMart's source is Teva

I would hope that in saying WalMart gets its generic drugs from India you are not associating yourself with George Felix Allen's "macaca" slur against an American-born person of Indian descent, are you?

Actually, the Lovastatin that I have myself obtained from WalMart's pharmacy is produced by the well-respected and FDA approved Israeli generic drug company Teva.

You really should be more careful about making untruthful slurs against a company like WalMart just because you do not like them IMO.

[BluegrassDem]

4. It's great for my family

My mother has no insurance and she has to pay out of the pocket for her blood pressure medication each month. Instead of paying $35 a month, she'll only pay $4 cause her medicine is on the list.

Say what you want about Wal-Mart, but this is a great move by them and will help people out there who count every single dollar they have.

[greenbriar]

6. they have to do something to counter their stopping layaway

citing things like people using gift cards and credit cards, the public no longer needs layaway so walmart is doing away with it

starting right before christmas this year

[AtomicKitten]

5. IMO

It's a PR dog & pony act which, if it helps people, is OK by me.

I worry about ulterior motives, though. Just like the gas companies lowering gas prices before the election, I wonder if this is for the same cause - to placate the masses, make 'em happy, and count on their short attention span - in hopes they will vote Republican.

I am worried people will forget they've been getting screwed since BushCo TOOK office.

[patricia92243]

8. People on Medicaid - NOT Medicare. There is a big difference. You must b

be disabled and meet a certain income bracket for Medicaid - which the majority of people do not meet. I know the article DOES say Medicaid - but it is easy to get it mixed up.