The company said it plans to take the program to as many states as possible next year in what will reduce drug costs for people with health insurance to $4 from between $10 and $30 for a 30-day prescription.

While the move is considered good for consumers, it was also believed to be an effort by Wal-Mart to improve its public image as a company. It has been criticized for the level of benefits, particularly health insurance, it provides to workers.

The announcement, however, was not good for Wal-Mart's rivals in the pharmacy business who will be under pressure to make similar moves. Wal-Mart's announcement roiled stocks of rival pharmacies with shares of Deerfield-based Walgreen Co. down more than $3 a share. Florida is Walgreen's biggest market. Shares of CVS Corp. were also down in heavy trading on the New York Stock Exchange.

``Each day in our pharmacies we see customers struggle with the cost of prescription drugs,'' said Wal-Mart CEO H. Lee Scott, Jr., in a statement. ``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.' '

Chicago Tribune
http://www.chicagotribune.com/business/chi-060921wal-mart-drugs,1,3625308.story?coll=chi-news-hed