Cheap prescriptions at Wal-Mart.

On October 20, Wal-Mart announced plans to begin selling a wide selection of prescription drugs for just $4 per prescription at stores in 14 states. The decision expands the plan that Wal-Mart first introduced in Florida in September. The retail giant expects to extend the program to as many states as possible within a year and, despite the low prices, expects to earn a profit on the program.

Wal-Mart officials also expect the low prices to bring shoppers to Wal-Mart stores, and they think it's about time that someone tries free enterprise in the healthcare market. "Competition and market forces have been absent from our healthcare system, and that has hurt working families tremendously," said Wal-Mart CEO H. Lee Scott. "We are excited to take the lead in doing what we do best--driving costs out of the system--and passing those savings to our customers and associates."

Wal-Mart's move has had an immediate effect on some competitors. Shortly after the initial Wal-Mart announcement to introduce the low prices in Florida, Target said it would follow suit in Florida. Like Wal-Mart, Target also expanded its program, this time to an additional 12 states.

While the advent of competition in the prescription drug market is a major victory for consumers, there are plenty of critics. The group WakeUp Wal-Mart called the move a "publicity stunt," and others were concerned that the decision to sell the generic drugs at such low prices would drive small pharmacies out of business. "They are closing down lots of pharmacies and lots of stores all over the United States because of their unfair practices." Madison's Community Pharmacy told WMTV News, the NBC affiliate in Madison, Wisconsin. Criticism also came from the National Community Pharmacists Association (NCPA). "It's a loss-leader type program that is solely aimed at getting people in the door at Wal-Mart. Most people going to get their prescriptions filled will be disappointed," said Charlie Sewell, NCPA's executive vice president of government affairs.