Walmart made headlines this month when it announced its support for an employer mandate for health care. The company's Fantasy Department (public relations) waxed eloquently in a joint-memo about its desire for "fair and broad" health coverage for all.

Then came the reality check.

A few weeks after Walmart's announcement, the company eliminated their Preferred Brand Name Drug Benefits Plan. Instead, Walmart is pushing their employees to use generic "alternatives" from its selection of $4 generics instead of name brand drugs they've come to rely on. I think it's important for people to understand the problems inherent in this move.

Alternatives are not equivalents

In some situations, generics are a great way to cut costs. But for many patients, brand name drugs are the only way to go. Often, well known drugs have important characteristics that their generic "alternatives" have yet to clone.

Arthrotec, for example, reduces a patients chances of getting an ulcer relative to standard NSAID generics. Another example, Ambien CR, is time released to help users sleep through the night, a property generics don't have. Both Arthrotec and Ambien CR have been axed from Walmart's list of covered prescription drugs.

Several Walmart generics are sourced from a highly disreputable corporation: Ranbaxy

Last month we released a report detailing potentially dangerous malfeasance by a key Walmart pharmaceutical supplier. Ranbaxy's Paonta Sahib plant has been called out by the FDA and DOJ for negligence which may have introduced "subpotent, superpotent, or adulterated" drugs into the American market.

Walmart still imports generic drugs from Ranbaxy.

In fact, several drugs on Walmart's new Formulary Alternative Guide are manufactured by Ranbaxy--these drugs include Amoxicillin, Cefpodoxime, Cephalexin, Fenofibrate, and others.

Simply put, it's highly irresponsible for Walmart push for broader adoption of its $4 generic program while sourcing from such a disreputable manufacturer.

Take action

We're looking for whistle blowers. If you're an employee who has been affected by Walmart's latest round of benefits cuts, please take a moment to tell your story.

Walmart is (rather transparently) touting these new benefit cuts as a cost-saver for working families. Well, cheaper isn't always better. We think it's important for consumers to know that, while Bentonville talks a good game, Walmart is still up to its old tricks.