Wal-Mart Stores Inc. said on Thursday that just six months after completing the roll-out of its $4 generic prescription drug program, 37.8 percent of all prescriptions it fills are $4 prescriptions.
Wal-Mart's U.S. chief operating officer, Bill Simon, made the comments at a media conference one day ahead of its annual shareholders' meeting amid ongoing criticism from labor groups that contend the world's largest retailer offers inadequate pay and health care benefits to its workers.
Wal-Mart began selling certain generic drugs for $4 per monthly prescription in September and by the end of November had extended the program to all its U.S. pharmacies -- far ahead of schedule. Other retailers, including close rival Target Corp., have rolled out similar programs.
Simon estimated that Wal-Mart's $4 program has removed $350 million in costs from the U.S. healthcare system, with that number projected to rise to $1 billion in a year.
Simon also said the retailer still expects to open as many as 2,000 in-store health clinics in the next five to seven years if current demand persists.
Wal-Mart began testing in-store health clinics in September 2005, and said earlier this year it would expand the program. The clinics provide basic preventative and health services -- such as cholesterol screenings or treatment for sore throats -- and a routine visit costs $40 to $65, excluding insurance.
Simon said the retailer does not see the clinics as a means to bring new customers into its stores, but as a way to meet customer demand and cut costs from the health care system.
Linda Dillman, Wal-Mart's executive vice president for benefits, risk management and sustainability, said 90.4 percent of Wal-Mart employees reported having some sort of health coverage, either through the retailer or a separate source like a parent or spouse.
She said about 47.4 percent of Wal-Mart workers are covered under the Wal-Mart health plan.
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