Wal-Mart medication program spreads to Illinois
November 7, 2006
DeKALB | Wal-Mart introduced $4 prescriptions in Illinois Oct. 19 for commonly prescribed medications at typically administered doses.
The program, originally introduced in the Tampa Bay, Fla., area, has now expanded to 18 different states. Some competitors downplayed the potential impact of the program, but Target announced that it will match Wal-Mart’s $4 price in states where Target competes with Wal-Mart.
Those states include Illinois, Indiana, New Jersey, New York and Texas.
Wal-Mart accelerated the program to allow for quicker expansion, said Kevin Gardner, senior manager of corporate communications for the chain.
“Tremendous customer response has led us to accelerate the rollout to states beyond Florida many months ahead of our original plans,” Gardner said.
Original feedback from the program showed a wide selection of Wal-Mart customers taking advantage of and benefiting from the program.
The generic drugs in this program are cheaper than brand-name drugs, but contain the same ingredients and are just as effective, Gardner said.
“A brand name medication has 17 years of patent protection,” said Walgreens spokesman Michael Polzin.
This means the brand can then charge more during those 17 years and no other company can carry a drug like it.
“Once up, generic drugs can come onto the market at a much lower price,” Polzin said, “We always encourage patients to take generic medication whenever possible.”
This program may come in handy for already tight-budgeted NIU students.
“I got a prescription at Health Services for a common cold for like $75,” said Katherine Hageland, an English literature doctoral student.
The $75 included three different drugs prescribed to Hageland at the time.
“[The Wal-mart program] would probably save me more than $275 a month,” she said.
Polzin said Walgreens does not have a program quite like this, but can give seniors information about drugs.
“We are making money on this program and we’re doing it by doing what Wal-Mart does best to execute this program, leveraging enhancements to logistics and infrastructure to drive costs out of the system and pass those savings along to our customers,” Gardner said.