Wal-Mart’s $4 plan raises skepticism from pharmacists
November 7, 2006
Many pharmacists are viewing Wal-Mart’s recent announcement to offer prescription drugs for as little as $4 a month as a publicity stunt to help gain positive press in response to a perceived lack of good health care plans for its employees.
Wal-Mart’s $4 plan includes 314 generic prescriptions that are available at common dosages for up to a month’s supply.
Although Ames Wal-Mart pharmacists declined to comment, Wal-Mart spokeswoman Marisa Bluestone said, “It’s really part of Wal-Mart’s ongoing commitment to make health care more affordable.”
When asked how much money this is going to save customers, Bluestone gave the example of the drug Amoxicillin, a commonly prescribed antibiotic.
“[The plan will] save customers $1.3 million monthly, and $15.5 million annually, and that’s just for Amoxicillin,” he said.
The savings would only apply in the 26 states that have the plan available.
Mike Rhodes, owner of Rhodes Apothecary Shop, 218 Main St., and pharmacist at Hy-Vee Drugstore, 1215 Duff Ave., said the plan does not have benefits for everyone.
“It’s really hard to tell [the amount of savings]. People that pay cash will save a little bit, but some generics are already very cheap,” Rhodes said.
“If you want to use insurance and the deductibles, you may be better off paying a little higher rate, because there is a certain limit you have to reach for the insurance. There’s a lot to think about when using insurance versus paying cash for something.”
Although Wal-Mart is excited about how its plan is going to help make health care more affordable, some other pharmacists view the plan as just a way to receive some positive press.
“It’s obviously a way to get more business and to give them a more positive image, because they don’t offer a lot of good health care plans to their employees, which has been in the press,” Rhodes said. “They don’t have anything to lose by doing it.”
Even though the plan is only being offered for generic medications, Rhodes said he has not seen or read about any drawbacks to using generic versus brand-name medications.
Greg Yeakel, chief staff pharmacist at the Thielen Student Health Center, said he has not seen anyone address the issue of how long the supply lasts, but he feels the majority of generic drugs are good products.
Yeakel said he believes people shouldn’t make price the most important factor in where they choose to buy their drugs.
“The focus is often times on the money, and I understand why,” Yeakel said. “They [Wal-Mart] have gained national attention. They want to be the biggest and people to think they are the cheapest.”
Rob Hoehle, pharmacy manager for Kmart, 1405 Buckeye Ave., said Kmart’s similar prescription program – which has been in place for about a year – has never received the buzz generated by Wal-Mart’s announcement.
Kmart’s plan also includes a list of generic medications available. The plan covers a 90-day supply for a cost of approximately $15, which averages out to approximately $5 a month, Hoehle said.
Although some larger pharmacies are able to match Wal-Mart’s offer, smaller pharmacies are concerned they won’t be able to compete.
As an owner of a smaller pharmacy, Rhodes expressed concern about losing customers.
“Although nothing has been going on yet, I’m sure that it’s going to happen,” he said.