STRS' Gary Russell agrees with CORE's John Bos
From Gary Russell,, October 03, 2006Subject: RE: Here is the press release from Wal-Mart
John,
Your understanding is correct. If an enrollee uses his or her Caremark card at a participating Wal-Mart and the drug (dosage and quantity) is on the $4 list, then the enrollee with pay $4 and the $4 will be credited toward the $1,500 out-of-pocket maximum for an enrollee in the Aetna or Medical Mutual Plus plans. For an enrollee in the Aetna or Medical Mutual Basic plan, there would be no charge against the enrollee’s $3,100 cap since the enrollee would be paying the entire cost of the drug.
Gary Russell
Director, Member Services
STRS Ohio
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From: John Bos, September 21, 2006
Subject: Here is the press release from Wal-Mart
Subject: Here is the press release from Wal-Mart
As I understand this, STRS retirees will be able to purchase the generic for $4.00. The amount will be recorded on the Caremark account and the retiree will pay $4.00. The copayment will count toward the yearly maximum amount. Caremark would be cut out of the action, STRS will save money, and the retirees will save a significant amount fo money on the generic. According to one source, Walmart will go into the states where there are the highest number of retirees. Ohio is high on that list. Fortunately, Ohio snowbirds will be able to get 4 months of drugs while they are living in Florida this winter.
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September 21, 2006
Wal-Mart to sell generic drugs for $4
Wal-Mart Stores (WMT, news, msgs), facing pressure from critics who call its employee health care coverage inadequate, plans to begin selling nearly 300 generic prescription drugs for a sharply reduced price of $4 for a month's supply.
The world's biggest retailer said Thursday that it will test the program inFlorida
Wal-Mart officials said the reduced price represents a savings to the customer of up to 70 percent on some drugs.
"Wal-Mart is taking this step so our customers and associates can get the medicines they need at a cost they can afford," Bill Simon, executive vice president of the company's professional services division, said in announcing the plan at aTampa , Fla.
The program will be launched on Friday at 65 Wal-Mart, Neighborhood Market and Sam's Club pharmacies in theTampa Bay
Simon wouldn't be specific about whyFlorida and specifically the Tampa Bay
More states to come
The company said it plans to expand the program to as many states as possible next year.
Simon said the 291 generic drugs include "the most commonly prescribed drugs for the some of the most common illnesses that face Americans today, including cardiac disease, asthma, diabetes, glaucoma, Parkinson's (disease) and thyroid conditions.
"Simon wouldn't give details on how much the plan is expected to cost Wal-Mart or the company's dealings with the drug companies involved.
"We're able to do this by using one of our greatest strengths as a company -- our business model and our ability to drive costs out of the system, and the model that passes those costs savings to our customers," he said. "In this case were applying that business model to health care."
The $4 prescriptions are not available by mail order and are being offered online only if picked up in person in theTampa Bay
In a conference call with reporters, Simon said that the generic drugs would not be sold at a loss to entice customers into the stores, a strategy that has been used in Wal-Mart's toy business.
He said Wal-Mart is working with drugmakers to help them be more efficient, but added, "We are working with them as partners. We are not pressuring them to reduce prices."
Tampa Wal-Mart pharmacy customer Pat Sullivan praised the company's initiative. The retiredMassachusetts
"I'm on disability and my benefits run out by the end of the month," he said. "It comes down to where do I go for a $100 prescription? I have no outlet other than to break a pill in half and take half today and half tomorrow
The world's biggest retailer said Thursday that it will test the program in
Wal-Mart officials said the reduced price represents a savings to the customer of up to 70 percent on some drugs.
"Wal-Mart is taking this step so our customers and associates can get the medicines they need at a cost they can afford," Bill Simon, executive vice president of the company's professional services division, said in announcing the plan at a
The program will be launched on Friday at 65 Wal-Mart, Neighborhood Market and Sam's Club pharmacies in the
Simon wouldn't be specific about why
More states to come
The company said it plans to expand the program to as many states as possible next year.
Simon said the 291 generic drugs include "the most commonly prescribed drugs for the some of the most common illnesses that face Americans today, including cardiac disease, asthma, diabetes, glaucoma, Parkinson's (disease) and thyroid conditions.
"Simon wouldn't give details on how much the plan is expected to cost Wal-Mart or the company's dealings with the drug companies involved.
"We're able to do this by using one of our greatest strengths as a company -- our business model and our ability to drive costs out of the system, and the model that passes those costs savings to our customers," he said. "In this case were applying that business model to health care."
The $4 prescriptions are not available by mail order and are being offered online only if picked up in person in the
In a conference call with reporters, Simon said that the generic drugs would not be sold at a loss to entice customers into the stores, a strategy that has been used in Wal-Mart's toy business.
He said Wal-Mart is working with drugmakers to help them be more efficient, but added, "We are working with them as partners. We are not pressuring them to reduce prices."
Tampa Wal-Mart pharmacy customer Pat Sullivan praised the company's initiative. The retired
"I'm on disability and my benefits run out by the end of the month," he said. "It comes down to where do I go for a $100 prescription? I have no outlet other than to break a pill in half and take half today and half tomorrow
posted by Kathie Bracy at 5:36 PM
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