Target matches Wal-Mart's drug price cuts

Target Corp. is expanding a discount prescription drug program to match Wal-Mart Stores Inc. -- but Minnesotans visiting either pharmacy won't see as great of a savings as customers in other states.

The program offers dozens of generic medications for $4 each. A new addition includes a one-month supply of birth control pills for $9.

But laws in Minnesota, Wisconsin and seven other states prevent pharmacies from selling drugs below their true cost. Nine of the 24 drugs being added to the generic discount program are affected by the laws.

In the case of a generic birth control pill called Tri-Sprintec, two Wal-Mart pharmacies in the Twin Cities are selling a one-month supply for $26.88, not $9.

Minneapolis-based Target is expected to match Wal-Mart's prices.

"We will be matching them on the same items and quantities," said Brie Heath, a spokeswoman for Target.

Wal-Mart said its existing program has saved Minnesotans $5.5 million because most of the discounted drugs weren't affected by state law. The Arkansas-based retailer launched the program in certain states in September 2006, and rival Target launched a similar program nationwide.

Minnesota's law stems from the Depression-era, when it was a misdemeanor for retailers to sell merchandise for less than true cost. The intent was to protect small retailers from large chain stores that could potentially cut costs in the short term to drive out competitors, then increase prices.

In January, Rep. Joe Atkins, DFL-Inver Grove Heights, introduced legislation to exempt pharmaceuticals from that law. He said a change was needed because many Minnesotans struggle with the high costs of prescription drugs.

Atkins said the bill faced opposition from the Minnesota Pharmacists Association, which wanted to protect smaller drug stores. Atkins said he hoped the two sides could reach a compromise in the future.

"My point of view is, as long as there's legitimate competition, more power to them," Atkins said. "If they want to sell for nothing, they should be allowed to do so -- as long as there's competition."

Tim Gallagher, president of the pharmacists group, said the bill as written could have caused problems for rural-area pharmacies that need the statute's protection.

Michael Polzin, spokesman for Illinois-based Walgreens, said his company had not matched the discount programs, but it still gained market share in the past year.

Officials with two Minnesota-based health plans said they had not noticed a big change in where patients filled prescriptions as a result of the discount programs.

"It has not impacted us financially, and we haven't noticed a lot of consumers changing," said Pat Lund, spokeswoman for Bloomington-based Health Partners. "That said, we're glad any time our consumers can save money."

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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