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Supermarkets Launch Generic Drug Discount Programs

Competition heats up but consumers still need to shop around

May 12, 2008

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Several major supermarket chains are launching discount generic drug programs, intensifying competition with Wal-Mart, which last week launched "Phase 3" of its highly-successful generic discount plan, adding more generics and over-the-counter drugs as well as a 90-day supply of some generics ofr $10.

Sweetbay Supermarkets, Hannaford Bros., Food Lion and Harveys Supermarkets have all launched discount generic programs or will soon do so, Supermarket News reported. The chains are all owned by Delhaize Group of Brussels.

Hannaford and Sweetbay launched their programs earlier this year Food Lion started last week. Harveys launched its program months ago, the trade paper said.

The Sweetbay program is called “Healthy Saver” and covers more than 400 drugs, priced at $4 for a 30-day supply, or $10.99 for a 90-day supply. The programs at the other Delhaize stores are similar, although Harveys does not offer a 30-day option.

Walgreen Co. sells a 90-day supply of generics for $12.99.

Wal-Mart last week announced it was adding more generic drugs to its discount sales promotion, in which the commonly prescribed medication is sold from $4 for a 30-day supply to $10 for a 90-day supply. The retailer says "Phase 3" of its plan, which began in 2006, will also include some over-the-counter medication.

Shop around

But consumers should be sure to shop around. The most publicized programs are not always the cheapest.

A survey released by Consumer Reports last week found that price fluctuations can be dramatic -- sometimes more than $100 for the same prescription – even within the same chain, depending on whether consumers are filling their prescriptions in, say, Omaha, Nebraska, or Billings, Montana.

Costco was the cheapest for the four drugs CR sought quotes for, followed by AARP.com and Wal-Mart. Walgreens and Rite-Aid were among the priciest for the four drugs.

Consumer Reports said it placed more than 500 calls to 163 pharmacies nationwide to gauge price differences among four prescription drugs, three name brand medicines and one generic.

Read more about the CR study ...

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