Wally World is finally doing what the majority in Congress prohibited Medicare from doing -- forcing competitive bids

"Unfortunately for America’s senior citizens, its benefits were lost on a Congress that denied seniors such price advantages."

From John Curry, Oct. 3, 2006: Isn't it ironic that the very same company that leads some states' statistics as one of the largest employers of those on the Medicaid rolls is, by its very own profit motive, this time benefiting seniors throughout the country? .... all of this at a time when the majority in our very own Congress coalesced with Big Pharma to prohibit competitive Rx bidding for the very same people that our Congress is supposed to look out for (its Citizens)? For those who wish us to shed a tear for the Pillmakers profit margin I say, "This time 'round, you got a dose of your own medicine!" Maybe your CEO's, using an STRS's Herb Dyer coined phrase, "will have to eat out less often."

This time, the squeeze is being put on the pillmakers' bottom line. Kind of refreshing to see, isn't it? I am not an admirer of Wally World's track record as it applies to benefits for its associates, but this time 'round it appears as if the Wall Mart CEO's have stepped on the toes of Big Pharma's CEO's. This is a battle that is fun to watch from the sidelines, isn't it? Both this battle and November 7th are just around the corner - I can't wait, how about you? Will today's "majority" in Congress be tomorrow's minority? For the working man and retirees... I can only hope and pray.

John

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Buying power

Retailers’ big cut in drug prices is good medicine for U.S.

Columbus Dispatch

Tuesday, October 03, 2006

Wal-Mart’s decision to slash prices on many generic prescription drugs doesn’t mean affordable health care for all, but it could force a dramatic shift in the way drugs are marketed and priced.

The move will help millions of Americans.

Already, Target Corp. has said it will match Wal-Mart’s new price for nearly 300 generic drugs, which is as little as $4 for a 30-day supply.

Wal-Mart and Target have the efficiencies of scale to withstand losses or lower profits on drug sales, and they have the bulk-buying power to command price cuts by generic-drug manufacturers.

Whether this will hurt those manufacturers is debatable. Critics say Wal-Mart squeezes the profit margins of its suppliers mercilessly. The company says it is working with 30 participating drug manufacturers "as partners" to help the suppliers cut their own costs.

The head of the Generic Pharmaceutical Association says Wal-Mart’s plan won’t affect members much.

The power of bulk buying is perhaps the most important lesson of all in Wal-Mart’s initiative. Unfortunately for America’s senior citizens, its benefits were lost on a Congress that denied seniors such price advantages. Lawmakers prohibited Medicare from negotiating with drug companies for its prescription-drug program.

The pharmaceutical industry doesn’t want to see lower drug prices, and its lobbying clout won the prohibition on negotiation, ensuring that Medicare patients pay more than they otherwise would have to. Fortunately for the people who depend on the drugs on Wal-Mart’s list of 300, Congress can’t prevent giant retailers from getting the best prices for their customers.