How can they do that: Walmart to offer $4.00 generic prescriptions

[NRSKarenRN, BSN, RN]

wal-mart speeds low-cost drug plan

wal-mart stores inc. expects to offer $4 prescriptions for some generic drugs in most states this year after expanding the program from a test market to all of florida ahead of schedule, the world's largest retailer said.

boston globe, oct. 6, 2006

[MS._Jen_RN, ASN, RN]

Because they are a huge company with lots of buying power. They can make deals with the companies who make the drugs. They say, "We'll buy X amount of Y and we'll pay you Z for it." It's such a large order that it benifits the drug company. There's nothing to say that Wal-Mart is also breaking even or losing money on this thing to get people into their stores.

The purchasing thing is done to a lesser extent with HMOs and providers of drugs and other services. The VA system does it with drug suppliers to their hospitals and those recieving Rx through them. This is one of the reasons that a one payer insurance system makes sense- Bargining Power. (The VA is the most cost effiecent health provider because they are a one payer system and can regulate costs)

Sorry for the tangent.

~Jen

[hodgeMN]

Its amazing that Wallmart can do that but the Federal government refuses to with the medicare perscription drug benefit.....