Free Lesson Plans for Teachers: Walmart Prescriptions

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The New York Times is running an article this morning explaining that
Walmart will begin offering generic prescriptions at $4 for a month's
supply - less than even a typical co-payment for someone who has health
insurance! The article states: "The Florida experiment with lower generic
drug prices appears to mark the first time that Walmart has used its
unrivaled influence in the American economy to lower the cost of health
care for its customers."

Read a related Article

Discussion Starters:

The article explains that Walmart is attributing its decision to
charge such low prices to its ability to lower the prices of
getting medicine from pharmaceutical companies to its store
pharmacies. Ask students to consider how they think medicine
gets from the site where it is produced to the local pharmacy.
They might draw a diagram explaining the route. The
complexity of this diagram will depend on the grade level and
ability of students.

Many people have complained that Walmart does not treat
their employees well. They have been accused of locking
workers in their stores all night and paying low wages among
other things. Ask students if they think that the price of a good
should be the only determinant as to whether somebody
should shop at a particular store? Encourage students to
explain their thoughts.

Many people in the United States argue that health care is too
expensive. Many countries, including Canada, provide health
care for their citizens. Taxes in Canada are higher than taxes in
the United States. Ask students if they think that the United
States government should work to provide universal health
care for all citizens. Ask them to consider the pros and cons of
providing universal health care. (Students should consider the
effects that they think universal health care would have on
taxes, quality of service and compensation for medical
professionals.)

In some countries doctors make great salaries. In other
countries they do not. Ask students if they think that doctors
should make high salaries. Ask students to make a list of five
variables that they think should be considered when
determining somebody's salary. You might have students
create these lists in small groups and then reconvene as a class
to discuss their lists. You might choose to have students
develop these lists and rationales explaining the lists on a wiki.
The goal of the class discussion might be to develop one wiki
entry that everybody can agree with.

If Walmart is able to expand its sale of $4 generic drug
prescriptions nationwide, what effect might this have on the
cost of prescriptions from other pharmacies? Is the list of
drugs offered extensive enough to be significant? Walmart has
often been accused of coming into a town and driving smaller
locally-owned businesses out of business by undercutting
them. Will it do the same thing to pharmacies?

Walmart's CEO H. Lee Scott, Jr is quoted on the Walmart
website: "“Each day in our pharmacies we see customers
struggle with the cost of prescription drugs. By cutting the cost
of many generics to $4, we are helping to ensure that our
customers and associates get the medicines they need at a
price they can afford. That’s a real solution for our nation’s
working families.” What is Walmart's motivation behind
making prescriptions available so cheaply? Are they simply
trying to be good to their community? Are they other ways in
which Walmart supports the community? What are some
examples of ways in which Walmart appears to be simply a
typical big business looking out for its own interests, rather
than those of its employees or community? How can you
reconcile these different images of the corporation?

Walmart's $4 Prescriptions
September 22, 2006

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