LOUISVILLE, Ky., and , BENTONVILLE, Ark. —Some say it cheapens patient care and reduces quality. The nation’s fourth-biggest pharmacy retailer and one of its top insurers are hoping it shifts a big chunk of business their way.
Clearly targeted to middle- and lower-income seniors in a distressed economy, the new, co-branded Humana Walmart-Preferred Rx Plan, introduced on Sept. 30, features steeply discounted premiums and co-pays. And if its appeal to Medicare beneficiaries’ pocketbooks is successful, it could have a similar, if less dramatic, impact on the price-oriented end of the pharmaceutical market as Walmart did when it rolled out its $4 generic drug pricing four years ago.
The most compelling lure offered by the Preferred Rx Plan is a low national monthly plan premium of $14.80. That’s less than half the average national monthly premium set by prescription drug plans serving Part D, Walmart and Humana officials asserted, and is the lowest national plan premium in 2011 for a stand-alone Medicare Part D plan premium offered in all 50 states and Washington, D.C., according to the Centers for Medicare and Medicaid Services.
Given the state of the economy, said John Agwunobi, president of Walmart’s health-and-wellness division, “this couldn’t be more timely.” It will give nearly 18 million Americans relying on Medicare for their prescriptions an affordable alternative, he added.
Those savings aside, the plan could shift a considerable chunk of the Medicare Part D prescription market to the world’s largest retailer and its more than 4,000 pharmacies. One key reason: it gives preferred status to Walmart’s own pharmacies, so Medicare beneficiaries who enroll in the plan will get low co-payments when they fill their prescriptions at a Walmart, Neighborhood Market or Sam’s Club pharmacy. In-store co-payments for those plan members will start as low as $2 for generic prescriptions at the company’s own pharmacies.
The new co-branded prescription drug plan can save a typical Medicare Part D beneficiary an estimated average of more than $450 in 2011 versus the average total costs for a Part D prescription drug plan in 2010, the two companies noted.
Agwunobi acknowledged that the move “is intended to grow our business.” It also cements a partnership with Humana that dates back to the inception of the Medicare Part D program in early 2006, when the two firms linked up to educate seniors about their options under Part D and provide pharmacy services through a co-branded prescription insurance card.
The new plan’s potential for wrestling market share away from Walmart’s competitors wasn’t lost on the independent drug store industry. The National Community Pharmacists Association quickly blasted the retail giant. The new prescription drug plan, NCPA asserted, “imposes higher co-payments on seniors who choose to continue using their trusted local, community pharmacy.”
“This is simply Walmart’s latest ‘loss leader,’ intended to bring more people through its doors at the expense of patient care and quality customer service,” NCPA president Joseph Harmison charged on Oct. 1. “Patients are being financially coerced to get their medications at Walmart stores, which make up less than 7% of all of the retail pharmacies in the United States.”
Additionally, he charged, patients in those stores have to put up with long waits and “assembly-line service,” particularly to take advantage of the retailer’s $4 generic drug offer. “By contrast, independent community pharmacies earned among the highest customer satisfaction scores of all pharmacies” in the most recent customer survey from J.D. Power and Associates, Harmison asserted.
Conversely, Walmart was rated the lowest among big-box operators, scoring a 769 Customer Satisfaction Index, according to the J.D. Power study—25 points below the mass merchant average.
Assured sees high rise in same-store sales
FRISCO, Texas September same-store sales at Assured Pharmacy increased by 13.5% compared with last year, the specialty pharmacy provider said Thursday.
Assured, which specializes in treating chronic pain, said sales were $1.4 million, or around $66,253 per business day, compared with $1.23 million a year ago.
“We are pleased with our September sales results and our continued patient growth, with 3,064 patients serviced in the month of September,” CEO Robert DelVecchio said. “As these sales figures reflect, we remain on track for increased sales and market share growth, improved earnings at the store level and stronger cash flow.”
Retailers, drug makers can help cut diabetes rate
WHAT IT MEANS AND WHY IT’S IMPORTANT The dramatic rise in the prevalence of diabetes over the next several decades is likely to place huge strains on the U.S. healthcare system, costing the country hundreds of billions of dollars every year. It also means the diabetes market will continue to be a hot bed for innovation for decades to come.
(THE NEWS: Diabetes prevalence among Americans may increase to 33%, CDC study finds. For the full story, click here)
Barring a cure for the disease or a dramatic reversal of current trends, the plague of Type 2 diabetes is likely to get worse and account for numerous hospitalizations, as it already does. According to the government Agency for Healthcare Research and Quality, nearly 1-in-5 U.S. hospitalizations in 2008 were related to diabetes, with the greatest concentration in the South.
No individual, company or even government agency can reverse the trend on its own, but many — including retailers — can help. And that will continue to feed a frenzy of activity in this space.
Agrowing number of supermarkets across the country have used various means to promote healthy eating, ranging from easy-to-read nutritional rating systems to in-store nutrition experts and store tours. Meanwhile, pharmacists and retail clinicians, as healthcare providers, can use their expertise to spread awareness as well. Rite Aid stores will offer free Diabetes Solutions Days events Nov. 2 through 4.
Health insurer Anthem Blue Cross has won recognition for a pilot diabetes program, “Bridging Cultural Health Care Gaps: Diabetes,” which seeks to find culturally appropriate ways to communicate about diabetes to African-American and Hispanic members. Anthem conducted the pilot among 4,000 of its members in California and Georgia, and plans to expand the program to other states.
More of these localized types of efforts — borne out of the spirit of the Ashville Project — continue to arise.
And of course, manufacturers continue to lead the innovation, and many are going beyond just products. Novo Nordisk recently released the BlueSheet, a report that promotes awareness and education in the prevention and treatment of diabetes.