Recently, Wal-Mart announced plans to experiment with offering some generic drugs at $4 per order. There was much noise over this — some folks expressing thanks that Wal-Mart was having mercy on some folks who take many drugs, others pointing out that those drugs weren’t all that expensive to begin with, and me sitting on the sidelines pondering how much additional business this could drive to Wal-Mart, opening the door to the idea that drugs, like sodas, can be loss-leader tools to increase traffic in the store and drive additional revenues from purchases of other, less-deeply-discounted products.
InsureMe notes an additional possible side-effect, if the Wal-Mart’s plan takes root:
[I]t seems as if a new consumer-driven health market could drive up the popularity of health savings accounts. In a recent press release, HSA for America President, Wiley Long, pointed out that health insurance plans with $15 prescription drug co-pays don’t make a lot of sense when you can get you’re medications for under one Abe Lincoln a pop.
On the other hand, HSAs would give consumers a way to save for future medical expenses, the assets of which would grow tax-free. If consumers can handle higher deductible, says Long, HSAs could be a great solution for millions of Americans. Currently, deductibles start around $1,000.