May 6, 2009
Walmart Tests Rx Mail Order Program
Pharmacy
benefits managers beware. Walmart is pushing
further into your territory with the announcement it is testing a mail
order prescription service in Michigan. Consumers in the state can call
1-800-2REFILL or go online (www.walmart.com/pharmacyhomedelivery)
to order a 90-day supply of specific generic medicines for $10. Delivery
is free.
"When
we launched our $4 prescription program in 2006, it truly changed the pharmacy
landscape," said Dr. John Agwunobi, Walmart’s president of the health
and wellness division, in a press release. "So we asked ourselves
‘what more can we do,’ and vowed to continue looking for opportunities
that would bring greater value and convenience to consumers. Our $10 mail
delivery prescription pilot program is a reflection of Walmart’s commitment
to drive unnecessary costs out of the health care system so Americans can
live healthier, better lives. Now regardless of whether consumers in Michigan
have a Walmart pharmacy in their local community or not, we can
help save them money."
Dennis
Archer, a former mayor of Detroit, said in the same release, "Americans
deserve access to quality, affordable health care and medications, yet
some families today aren’t filling prescriptions because of high costs
or lack of health insurance. Programs like Walmart’s offer
innovative new pharmacy solutions that better serve all the citizens of
Michigan and help drive down costs of health care for everyone."
According
to Walmart, the company’s $4 generic prescription program has
saved consumers more than $2 billion since it was first rolled out. Consumers
in Michigan, according to the company, have saved more than $43 million.
Discussion
Questions: Do you see Walmart changing the
pharmacy business in America? What will the business look like in the
years ahead?
BrainTrust
Recent Discussions
Discussion Questions
Poll
As a Canadian, I find it laughable what Americans are paying for prescription drugs. So as far as I can see, Walmart is doing everyone a favour by reducing prescription fees. It will be nice to see families being able to afford medication costing more than a bottle of Flintstone vitamins.
Now if only you guys can do something about the greedy drug companies.
“When Walmart sneezes, does everyone else end up in the hospital?”
Given WMT’s size, purchasing power and distribution, it is entirely conceivable that they become a major player in this space. The savings they offer are very real, particularly in a category of health care where there are (at least) cost inefficiencies.
Employers, insurance companies and the governments (state and local) are all heavily vested in realizing health care savings. If anyone can help accomplish this, certainly it is WMT.
Pharmacy programs administered through traditional employer-sponsored health insurance programs will need to find more ways to be cost-competitive, now that Walmart is moving into the mail-order pharmacy business. The $4 generic-drug template already turned the business on its ear a few years ago, and competitors like Target and Walgreens were compelled to follow suit. The mail-order program should also draw more traffic to Walmart’s website and could drive more purchases into shoppers’ carts.
This continues to be good news for consumers, even though it may not be good news for high-margin pharmaceutical providers. Walmart has proven in business after business that its low-cost and low-margin formula is a market share winner.
This is all part of omnibus healthcare reform that is so desperately needed in this country.
Here is what we know about Wal-Mart. If Wal-Mart tests something, it makes strategic sense. If Wal-Mart rolls it out, we know it will work and have market-trembling results on competitive retailers.
While Wal-Mart always seems to be the winner, it is fascinating to watch them compete against the likes of Target. Similarly, while Wal-Mart has been the winner on the grocery side, the responses from many of the supermarkets have made for more and better choices for the consumer. Unfortunately, when Wal-Mart goes against the Drug Chains it’s like major leaguers playing against farm teams.
If Walmart rolls this out it will be a win for everyone–especially Walmart. Here is the company that many people have learned to hate again making a move that makes everyone a winner. If they can get the program to just break even, the return on positive PR and customer loyalty will make it a home run.
This is terrific on so many levels. Those of us who live in Walmart-less areas (cities) would want to sign up this afternoon. Apart from the obvious prescription savings, think of the merchandise tie-ins and cross promotions…!
Mail-order drugs will definitely improve the ROI of thieves who are now confined only to stealing Social Security checks out of old-folks’ mail boxes.
$4 prescriptions make sense for Walmart because they guarantee more customer traffic that buys other stuff. $10 mail order prescriptions might just be the cherry pickers’ delight. If Walmart rolls this out nationally, they might hurt their competitors…but the number 1 loser might be Walmart, if the $4 prescription traffic nosedives.
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As a Canadian, I find it laughable what Americans are paying for prescription drugs. So as far as I can see, Walmart is doing everyone a favour by reducing prescription fees. It will be nice to see families being able to afford medication costing more than a bottle of Flintstone vitamins.
Now if only you guys can do something about the greedy drug companies.
“When Walmart sneezes, does everyone else end up in the hospital?”
Given WMT’s size, purchasing power and distribution, it is entirely conceivable that they become a major player in this space. The savings they offer are very real, particularly in a category of health care where there are (at least) cost inefficiencies.
Employers, insurance companies and the governments (state and local) are all heavily vested in realizing health care savings. If anyone can help accomplish this, certainly it is WMT.
Pharmacy programs administered through traditional employer-sponsored health insurance programs will need to find more ways to be cost-competitive, now that Walmart is moving into the mail-order pharmacy business. The $4 generic-drug template already turned the business on its ear a few years ago, and competitors like Target and Walgreens were compelled to follow suit. The mail-order program should also draw more traffic to Walmart’s website and could drive more purchases into shoppers’ carts.
This continues to be good news for consumers, even though it may not be good news for high-margin pharmaceutical providers. Walmart has proven in business after business that its low-cost and low-margin formula is a market share winner.
This is all part of omnibus healthcare reform that is so desperately needed in this country.
Here is what we know about Wal-Mart. If Wal-Mart tests something, it makes strategic sense. If Wal-Mart rolls it out, we know it will work and have market-trembling results on competitive retailers.
While Wal-Mart always seems to be the winner, it is fascinating to watch them compete against the likes of Target. Similarly, while Wal-Mart has been the winner on the grocery side, the responses from many of the supermarkets have made for more and better choices for the consumer. Unfortunately, when Wal-Mart goes against the Drug Chains it’s like major leaguers playing against farm teams.
If Walmart rolls this out it will be a win for everyone–especially Walmart. Here is the company that many people have learned to hate again making a move that makes everyone a winner. If they can get the program to just break even, the return on positive PR and customer loyalty will make it a home run.
This is terrific on so many levels. Those of us who live in Walmart-less areas (cities) would want to sign up this afternoon. Apart from the obvious prescription savings, think of the merchandise tie-ins and cross promotions…!
Mail-order drugs will definitely improve the ROI of thieves who are now confined only to stealing Social Security checks out of old-folks’ mail boxes.
$4 prescriptions make sense for Walmart because they guarantee more customer traffic that buys other stuff. $10 mail order prescriptions might just be the cherry pickers’ delight. If Walmart rolls this out nationally, they might hurt their competitors…but the number 1 loser might be Walmart, if the $4 prescription traffic nosedives.