Seniors wait for a news conference by Wal-Mart officials to begin at the chain's outlet at 5200 S. Fort Apache Road. Wal-Mart expanded its $4 generic prescription drug program into Nevada. Photo by John Locher.
Two weeks after rolling out its low-cost generic drug program in Florida, Wal-Mart officials announced Thursday the same deal would be available to consumers in Nevada, winning praise of some local seniors and politicians.
However, the local United Food and Commercial Workers Union Local 711 called the nation's largest retail chain's plan just another public relations ploy to generate more foot traffic.
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Meanwhile, larger pharmacy chains such as RiteAid and Walgreens said they would not be matching Wal-Mart's deal.
"More than 95 percent of our (pharmacy) customers have their prescription drugs paid by a third party, and the average co-payment for the prescriptions on Wal-Mart's list is not that much more than $4,'' Karen Rugen, a spokeswoman for Pennsylvania-based RiteAid, said. "We don't feel it's necessary to lower the prices when there's such a small difference.''
In a written statement, Kmart officials also said they wouldn't match Wal-Mart's plan, but would stick with its 90-day supply generic prescription drug program, which costs $15.
Wal-Mart began the $4 program in Florida to provide affordable prescription drugs to seniors, the uninsured and people with insurance who can't afford their prescription drugs. Due to customer demand, it was expanded into 14 additional states, Tim Ensley, a regional Wal-Mart pharmacy manager, told a group of seniors and Nevada politicians Thursday outside the chain's outlet on Fort Apache Road near Tropicana Avenue. A second event was held in Reno.
Wal-Mart's program includes 314 prescriptions, made up of 143 different drugs in either tablet or liquid form. Only 30-day supplies for commonly prescribed dosages are available under the program. Prescriptions fall within 24 therapeutic categories, including anti-inflammatory, antibiotic, antidepressant, cardiac and hormonal drugs.
Mike Gittings, secretary treasurer for Local 711, which contends the chain doesn't provide adequate health insurance for its employees, said Wal-Mart is "cherry-picking cheaper prescription drugs. Our consensus is that this is a really small number of generic drugs Wal-Mart is offering. There are more than 11,000 generic drugs on the market.''
Marie Orman, an 84-year-old Las Vegas resident who lives at a nearby assisted living facility, said she found at least one of her generic prescriptions on a list that the company provided Thursday. That drug, Allopurinol, is used to treat gout.
Orman says she typically pays $8.50 a month for 30 pills at a local CVS drug store.
"This is something I have to take for the rest of my life, and if I can save a few bucks here and there, it helps,'' said Orman, who was among a dozen seniors brought to the Fort Apache Wal-Mart to hear about the new program. "I just don't know how I'm going to get it. CVS delivers. Wal-Mart doesn't.''
Roger Meyers, pharmacy manager for the Fort Apache outlet, said people are trying to watch their pennies and it's not uncommon for customers to bring in their prescriptions for multiple medications and only take home the one that they can afford.
Dropping the price will help people fill more of their prescriptions, Meyers said.
"I see it on a daily basis. This is a significant problem in our senior population.''
Nevada state Sen. Barbara Cegavaske and state Assemblyman Chad Christensen, both Republicans, attended Thursday's event and praised Wal-Mart's move.
Christensen said he is happy to see private industries provide consumers with cost-savings, especially in the area of health care.
"The less government has to spend, the more citizens will get to save,'' he said. "I recently had a conversation with U.S. Health and Human Services Secretary Michael Leavitt, and he told me that we were spending something like 17 percent of every dollar on health care. We can't be the world's strongest economy if all the dollars go to health care.''
Leavitt, who was in town for the American Dental Association's convention, gave a speech Thursday on health care costs. He called the nation's health care system "cost blind'' and "quality deaf.''
But Gittings said the union's biggest concern with Wal-Mart's program is that people may now think that all generic drugs are $4.
"A lot of these generic drugs are already around the cost of $4, so there may not really be a savings,'' he said. "It's almost like handing out ice during the winter.''
When asked what the 143 generic drugs cost prior to the $4 program, Wal-Mart officials wouldn't say.
"We don't show prices publicly,'' said Karianne Fallow, a company spokeswoman.
Louis Ling, attorney special counsel for the Nevada State Pharmacy Board, said the board doesn't discuss or comment on pricing issues. The board has never had any problems with Wal-Mart pharmacies, he said.
Deborah Moore, a spokeswoman for AARP Nevada, said the organization was encouraged that a large retail company such as Wal-Mart was looking into creative ways to make prescription drugs more affordable.
"We're certainly glad they are encouraging the use of generic drugs,'' she said.
Ensley said Wal-Mart had planned to expand the program into other states in 2007, but did so early because of demand.
Wal-Mart will continue to expand into other states "as quickly as possible," although regulatory and legal hurdles may slow the move in some states, company spokesman Dave Tovar said.
