Stunningly, Walmart Gets It Right
Published October 7, 2006
Far be it for me to praise Walmart. That is, until now. In one swoop, America's Godzilla of Retail has done what no politician, doctor, or insurance company has been able to in the history of modern healthcare: Make it more affordable.
Walmart has made 300 of most common generic prescription drugs available to anybody, insured or not, for 4 dollars. Right now, the plan is being tested in Florida, but Walmart expects to expand across the nation sometime in 2007.
All 300 are first-line therapies that are safe and effective. Drugs on the list include albuterol for asthmatics, metformin for type II diabetics, and amoxicillin, the antibiotic used for ear infections in children. Generic drugs account for 60 percent of all prescriptions dispensed in the U.S.
The move stands to save people 20-90 percent on the cost of their drugs. So for those individuals and families who constantly have to choose between their health or dinner,
Walmart's move is nothing short of innovative.
Will Walmart lose money? Wall Street was suspicious, as Walmart's shares took a slight dip after the announcement. But Andrew McGuire, director of Health Care for All
Californians, doesn't think so: "The markups on prescription drugs are incredibly high,

the profits are huge," he stated in an interview with MSNBC. McGuire and many experts feel that Walmart will still profit even when they sell drugs at what appears to be bargain basement prices.
Critics will say that Walmart is using its power to squeeze drug makers--after all, it has a history of using the same power to bring down prices for everything from Cheerios to
Barbie dolls. Competing pharmacy retailers are crying foul over the possibility of losing market share. And cynics are quick to suggest that Walmart, like any other large corporation, is less interested in altruism and more interested in getting people into its stores to buy other products, and that this is just another PR move to turn around its reputation as being a company without a social conscience.
Whatever.
What really matters here is that in a country where healthcare costs keep going up and being shifted to employees, where drug makers charge exorbitant prices for their products and lobby politicians to protect their interests by banning imports from Canada,
Walmart's move is something that helps people , regardless of its motive. And it forces drug makers to look at their business practices and make themselves more efficient.
Insurers did the same with doctors, and so it's about time that pharma take its seat at the table.
So, Walmart, let me say the following: Ok, here goes...nice job.

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