Target and Wal-Mart to offer cheap prescriptions

From: John Curry

Subject: Move over PBM's, part of your party is about to end!

Date: Sun, 24 Sep 2006

Updated: Sep 22, 2006

WoodTV.com, Grand Rapids, MI
By ANNE SCHIEBER

CASCADE TOWNSHIP -- Target stores announced Friday they would match Wal-Mart in testing a program to sell generic prescription drugs for $4. It could have a big impact on the entire drug market.

Just like Wal-Mart, Target says it will test-market in one area of the country first - Tampa, Florida. If it is a success, the program could be available throughout the country by next year.

Customers, like Jerry Neve of Kentwood, say they can't wait for the program to start. He says $4 prescription drugs could save people like him, who have limited prescription coverage, lots of money.

"I think it's great. A lot of people like me are in the same boat. It's a long time in coming. A lot of money is going into someone's pocket, and I think it's the drug companies," he told 24 Hour News 8.

Neve has some insurance coverage, but not much. He already fills his prescriptions at Target, but by offering $4 generic prescription drugs, Target and Wal-Mart hope to open the gates for more business.

But where does that leave the little guys, the independent pharmacist?

"I don't feel threatened by it," said Bill Byington of the Ada Hillside Pharmacy. "It's simply a strategy to get market share."

He's not sure he can match the $4 price, but he can come close. He told 24 Hour News 8 if customers buy a 90-day supply of a generic drug, they could get the drug for about $16, not far different from the three-months-for-$12 price.

Byington plans to compete in other ways. He'll offer services like home delivery and that personal touch.

"You don't have to go through tiers of people," he said. "You call us on the phone, you'll get a pharmacist or a pharmacist technician."

It's also unclear what generic drugs Wal-Mart and Target plan to sell for $4. Wal-Mart's Web site said the drugs are subject to change, and they also cover what is called a "usual" 30-day supply. It's not clear if that means one pill per day, which could boost the price for someone requiring more than that.

The National Community Pharmacists Association said studies show it costs $10 to fill a prescription for any retailer. The size of Target and Wal-Mart allow them to make up the difference in other areas.

None of the other chains have announced interest in this plan. Meijer said it will look at the $4 program, if and when it takes place.

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From: Molly Janczyk, 24 Sep 2006

Newspaper said it would be limited to some of cheaper generics. So be careful, if $4 for 30 days, you may make out better with $11 for 90 days. We get one generic for $3.11 for 90 days.

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Molly -

I have had the situation happen where my current co-pay (for a generic) is $10. I have had the pharmacist assistant get ready to ring up $10 and interrupted her asking what the price would be if I didn't have a drug card and just walked in off the street! To her surprise, on one of my Rx's (and maybe the pharmacist) my cost was $6 and some change. I said, "OK, ignore my drug card, I just walked in off the street!" This new Walmart concept will "shake down" a lot of ungodly profits gleaned by pharmacies and PBM's all over the U.S. But, yes, one has to 'CALL AROUND' first to check the prices and for the 90 days Rx if that is what the Rx is for.

John

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From Molly, 9/24/06

I have never had that happen. Retail or 90 day. I always get charged less if it is less. One 30 day RX for me is $5 and that's all I am charged. If a RX is less that generic cost, we only get that cost and never the STRS copay listed. It is in the Caremark booklets that you pay less if the cost is less than the copay. We do need to change this country's leaning tow/ big pharmaceuticals for sure: one way is to elect legislators who do not favor them and when we open our borders to allow lower cost drugs in general to fill our pharmacies to force down RX costs.