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Kroger Expands Its Generic Drug Discount Programs

Latest Wal-Mart upgrade sets off competitive responses

By Truman Lewis
ConsumerAffairs.com

May 13, 2008

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Kroger Co. says it won't be left in Wal-Mart's dust. It's upgrading its $4 generic drug program to meet the latest changes in Wal-Mart's program.

Kroger unveiled its $4 program in February, modeled closely after Wal-Mart's plan which rolled out in 2007, offering many popular generics for $4.

On May 6, Wal-Mart expanded its program to include orders for 90-day supplies and additional drugs to treat osteoporosis and breast cancer as well as cutting the price of more than 1,000 popular over-the-counter drugs in half, setting off competitive responses by many grocery chains, including Sweetbay Supermarkets, Hannaford Bros., Food Lion and Harveys Supermarkets.

A Kroger spokesman said the new program is "very similar to Wal-Mart's."

"Certainly we want to be very competitive in the marketplace," Kroger spokesman Gary Huddleston said. He declined to disclose sales numbers for the program but said that besides increasing drug sales, it has "helped introduce new customers to Kroger."

Before the recent changes, Wal-Mart and Kroger included more than 300 generic drugs to treat common conditions such as diabetes, asthma, depression and heart disease on their lists of drugs costing $4 for a month's supply.

Competitive turmoil

While few grocery or pharmacy chains duplicate the Wal-Mart program, many have introduced similar programs and the number of outlets offering popular generics at reduced prices has increased substantially since Wal-Mart introduced its program, which started as a pilot project in Florida in late 2006.

Target offers a similar program and Walgreen Co. sells a 90-day supply of generics for $12.99.

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.

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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