Is Wal-Mart's $4 drug program a good deal or a marketing ploy?

Executives of retailing giant Wal-Mart gathered at the Lynnwood store Thursday to announce that its pharmacies in Washington will now join other Wal-Mart stores around the country in offering certain generic drugs for $4 a month.

But Becky Boast, who arrived at the Lynnwood pharmacy Thursday to refill her asthma inhaler, still had to pay $35. Her prescription was one of the many not on Wal-Mart's $4 list.

As Washington and 10 other states were added to Wal-Mart's two-month-old generics program, consumer groups and independent-pharmacy organizations said Boast isn't alone. The groups continue to complain that the deal is primarily aimed at luring customers into stores to shop for other stuff. And Wal-Mart's program applies to a mere fraction of the thousands of drugs on the market.

Even so, in other parts of the country, other retail chains have lowered prices on generic drugs to match Wal-Mart's prices.

And Boast, a 41-year-old cabinetmaker and mother who helps seniors with home health care, was so enthusiastic about the idea that she said she would drive straight home to Woodinville and call her friends.

"This is huge!" she said. "I think this is really going to help not only kids but the elderly."

143 drugs included

Wal-Mart's offer applies to 143 different drugs, in 331 different versions and dosage levels. It doesn't apply to any drugs without generic versions. Typically, generic drugs cost patients $2 to $100 or more, said Donna Aitoumeziane, Wal-Mart's regional pharmacy manager. Generic drugs are regulated by the government and have the same active ingredients as brand-name equivalents.

Wal-Mart launched the program in September in Florida, and added 26 other states last month. Other states added to the program Thursday were Idaho, Kentucky, Maine, Massachusetts, Nebraska, Oklahoma, Rhode Island, South Carolina, Utah and West Virginia.

Not a money-loser

As they introduced the program Thursday, Wal-Mart officials said the chain won't lose money on the deal. "This isn't a loss leader," said Gina Stamp, the company's pharmacy market manager for Puget Sound.

Stamp said drugs on the list are those that Wal-Mart was able to get for lower prices from suppliers. "That's always been a philosophy of the company — to go after lower costs and pass those savings on," Stamp said.

Thursday, the Kmart chain reiterated that it has a program in Washington that offers some generic drugs for $15 for a three-month supply. After earlier expansions in other states, the Target chain matched the discounts. But other chains, including Walgreens, said they would not change prices because, they contended, they already are competitive. Costco did not say Thursday whether it would change its prices.

Stamp said Wal-Mart welcomed the price cuts that other chains have made in response as a "collaborative effort to lower health-care costs" for everyone.

Limited benefits

But Ron Pollack, executive director of Families USA, a consumer group based in Washington, D.C., cautioned that the benefits will be limited.

The program will help some patients who take the select drugs on the list, he said. But the list doesn't include the vast majority of the thousands of generic drugs now available — and it includes none of the more expensive brand-name drugs, he said.

Pollack also noted that the program won't help people who can't afford to see a doctor to get a prescription.

"It's important not to exaggerate how many people it will help," Pollack said.

And while Wal-Mart list looks long, with 331 "generic prescriptions," many are the same drug in different dosages or formulations. For example, the list includes 14 different formulations of the antibiotic amoxicillin. In addition, some drugs on the list are available over the counter at the same dosages.

"The question people should be asking Wal-Mart is, 'What will you be charging for the other 99 percent of the medications that people need?' " Bruce Roberts, the CEO of the National Community Pharmacists Association, said in a statement. He noted that many of the generics on the list are older drugs with more side effects than the current preferred medicines for certain conditions.

Medicaid costs

Jennifer Holder, a Wal-Mart spokeswoman at the Lynnwood event, said the company will continue to add to the list. And Wal-Mart officials predict the program will save the state hundreds of thousands of dollars annually through lowered Medicaid costs.

State officials said that could be true, because pharmacies can only charge the state their lowest price for prescriptions. But it won't affect Medicaid patients themselves, because they don't pay for prescription drugs, said Jim Stevenson, a spokesman for the state Medicaid program.

But patients who pay at least part of their prescription bill said they were happy to save a little money.

"It proves that private enterprise can take care of health-care needs," said William Cox, 71, of Everett, who said he and his wife spend about $500 a month on medications. Now one of their diabetes drugs is on Wal-Mart's $4 list.

Carol M. Ostrom: 206-464-2249 or costrom@seattletimes.com.

News assistant Suesan Whitney Henderson contributed to this report; information from the Associated Press and Bloomberg was also included.