Cheap Drugs

On Thursday the retailing giant announced plans to expand its discount drug plan to 27 states. Under the program, Wal-Mart will charge consumers just $4 for more than 300 popular generic medications including amoxicillin and the antidepressant fluoxetine. Experts predict rivals will feel pressure to lower their prices to maintain customers. Indeed, Target (TGT) has already followed suit.

This news is a godsend for the 46 million people uninsured. But even those folks with drug coverage through their health insurance should take note since they could save some money, too. While every company plan will vary, the average employer-sponsored health plan charges a co-payment of $10 for a nonbranded medication, according to the Kaiser Family Foundation, a nonprofit organization that provides information and analysis on health-care issues.

Of course, shopping at Wal-Mart isn't the only way to keep your drug costs low. Here's the scoop on what Wal-Mart is offering — along with more money-saving tips for your prescription drug needs.

Consider Wal-Mart
First, check to see if you live in one of the 27 states. If you don't, check again soon because a Wal-Mart spokesman says the company plans to roll out its discount program to as many states as it can by year's end.

If you do live in one of the "discount" states, check your medications against the $4 generic drug list to see if you can save any money. (Click here for Wal-Mart's complete list.) What if you already have drug coverage through your health insurer? Typically, when you fill a prescription at a pharmacy, you're charged the insurer's co-pay. Regardless of the medication's cost, even if it retails for less. Wal-Mart, however, says it will charge all of its customers just $4 for participating remedies. Just make sure to present your insurance card with your prescription so the retailer can have the medication added to your health records. (Insurance companies keep all of your medication information together so it can troubleshoot drug interaction issues when you fill a new prescription.)

Other Low Priced Options
What if your generic isn't on Wal-Mart's list? In general, the cheapest generics are found at wholesale club stores, including Sam's Club and Costco. These discounters typically charge 50% less for nonbranded medications, says Gabriel Levitt of PharmacyChecker.com, a web site that monitors prescription-drug costs. While Costco doesn't currently offer one flat fee for its prescriptions, the company says it charges just 3% over its costs for all of its generics. Even better, you don't need a membership card to buy your prescription meds there. (For details on other great deals at warehouse stores, click here.)