Clark Howard's Tips

May 6, 2008

There's been so much press on Wal-Mart's decision to cut the price of prescription drugs yet again. The mega-retailer's original $4 prescription plan completely changed the face of the business. Generic meds now account for an overwhelming number of prescriptions in the United States. Wal-Mart played a big role in breaking the stranglehold that Big Pharma's TV ads had on the market.

Now Wal-Mart's program is being expanded to allow a 90-day supply for $10. Target has immediately matched the deal. While you'll save $2 over 3 months, Wal-Mart and Target benefit by saving on the cost of labor. Wal-Mart is also making its private label brand, Equate, available on the list of approved drugs.

Meanwhile, the June edition of Consumer Reports names the best pharmacies based on price and service. Costco is tops when it comes to saving on brand-name drugs. The warehouse club can be hundreds of dollars cheaper over the life of a prescription than the big chain drugstores like Walgreens and Rite-Aid. The beauty of Costco's pharmacy is that you do not have to be a member to use it. Some Costcos even have a separate pharmacy entrance for non-members to cut down on the risk of shoplifting.

If you're looking for the best service, Consumer Reports says you should try an independently owned pharmacy. Indies get a score of 92 out of 100 for service, while Costco only gets a respectable 85. Meanwhile, if you use a pharmacy benefit manager (PBM) through your work, Cigna and Aetna are dead last. They get the lowest marks in the shopping experience category. On the flip side, Caremark has been singled out as the best PBM.

Consumer advice courtesy of