This Free Market Thing

What to do about runaway drug costs? That's the intractable problem that has animated the Democratic Party for years and forced the GOP to enact the first new entitlement since LBJ lived at 1600 Pennsylvania.

I'm not saying that this is a panacea, but Wal*Mart is testing a new program to offer $4 generic drugs (my co-pay is six). The Wall Street Journal reports (paid link) that the evil giant will use its fearful monopsony powers to, umm, provide inexpensive drugs to people.

Retail giant Wal-Mart Stores Inc., eyeing a long list of brand-name pharmaceuticals about to lose patent protection, announced plans to test a low-price strategy for generic drugs sold at its pharmacies.

The Bentonville, Ark., company said it will cut the price of nearly 300 generic drugs sold at Wal-Mart store pharmacies in Florida's Tampa Bay area to $4. The company plans to expand the program to all Florida stores in January 2007, and in other states next year.

Wal-Mart said the program will be available to customers with insurance as well as the uninsured. It will include medications to treat allergies, cholesterol, high blood pressure and diabetes. The discount giant said some antibiotics, antidepressants, antipsychotics and prescription vitamins will also be included.

Again, I don't claim that the problem is somehow solved, but this shows the power of a free market solution.

Pharmaceuticals Posted by John Kranz at September 21, 2006 10:35 AM