Walmart Expands Price Cuts on Prescription Drugs
I believe that this move to offer lower prices on prescription drugs by Walmart will have both good and bad consequences for Americans. On the one hand, lower prescription drug prices at Walmart will enhance the accessibility of important medications for low income or uninsured Americans.
At the same time, Walmart has a troubling reputation for the treatment of its workers, low wages and for stifling competition by existing small businesses. Increasing Walmart's pharmacy market share will put more pressure on small, local pharmacy operators. This could have the effect of further reducing wages and local competition.
Walmart's move may also have the effect of encouraging other large operators to reduce prices on prescription drugs in an effort to compete. When Walmart announced the original low cost prescription drug program, Target also reduced prices on generic drugs. If this trend continues, it may create lower prices on prescription drugs throughout the market which would be a welcome relief for uninsured and low income Americans relying on medications.
Walmart's program has both a good and a bad side. On the plus side, Walmart's prescription drug program may increase access for the uninsured. Competing companies may lower prices in response to Walmart's move which will further increase access to low cost prescription drugs. This would be good for many families. On the other side, until the competition responds, more consumers will be purchasing from Walmart. Walmart is often accused of some troubling business practices and of stifling competition. Increased market share will only increase those practices.
Sources:
Wal-Mart expands low-price drug program, ABC Action News, http://www.abcactionnews.com/news/national/story.aspx?content_id=e8cbb8c8-2b1f-4cbc-a12a-81008e914c83
New Wal-Mart drug price cuts enhances its pharmacy reputation, National Post, http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/05/06/new-wal-mart-drug-price-cuts-enhances-its-pharmacy-reputation.aspx
Target Matches Wal-Mart's $4 Generic Rx Price, Consumer Affairs, http://www.consumeraffairs.com/news04/2006/09/walmart_target_drugs.html
Published by J Julian Hill
Julian considers himself an explorer. He has various interests and is always trying out something new. Julian enjoys writing on a variety of subjects and is available for work-for-hire. He lives in Columb... View profile
Avoiding an Rx for Disaster: Prescription Drug Options for the UninsuredThe rising costs of prescription drugs combined with a lack of drug coverage are leaving consumers without the medication they need. Fortunately, assistance may be available.- How to Save Money on Prescription DrugsEven with the ever-rising costs of prescription drugs, the average consumer can still save money.
- Saving Money on Prescription DrugsAnyone who has to buy prescription medications on a regular basis may be interested in saving money.
- Prescription Drug Options for the UninsuredIn response to the concerns over the high out of pocket cost of prescription drugs for the uninsured most states have devised a number of ways to make discount purchasing programs more available to persons who are uni...
- Shop Around for Prescription Drugs: It Pays to ComparePrescription prices vary wildly between pharmacies. It is wise for the consumer to compare prices when they need to purchase prescriptions. Following is what I learned when I called pharmacies for quotes before gettin...
- Save Money on Prescription Drugs
- Save Money at Wal-Mart with Their $4.00 Prescription Drug Plan
- Lower Prices on Prescription Drugs: Target Pharmacy Vs. Wal-Mart Pharmacy
- Is There a Difference Between Generic and Brand Name Prescription Drugs?
- Saving Money on Prescription Drugs
- Purchasing Prescription Drugs on a Low Budget
- Fight Heart Disease with Affordable Prescription Drugs from Canada