This fall when you stop by your local Walgreens store to fill a prescription, get a flu shot, or pick up a candy bar or some smokes, you may also be able to buy a health insurance policy.
While the company has neither confirmed nor denied it, the nation’s largest drugstore chain is said to be gearing up to launch a private health insurance exchange in the fall, reports CNNMoney (read here). CNN says that Walgreen Co. will sell a variety of plans with different price ranges and levels of coverage through a private health insurance exchange.
I wouldn’t be surprised if it’s true. Walgreen has rushed to fill gaps in our nation’s fractured health care system, opening hundreds of in-store Take Care Clinics, worksite health care centers (see previous post), and by offering a slew of health care services, including immunizations and counseling for chronic conditions, such as diabetes. It also provides products and services to pharmacy patients and prescription drug and medical plans through its Walgreens Health Services unit. Already a leader in health care services, offering health insurance is a logical next step for Walgreen.
With the ranks of the uninsured and underinsured swelling, consumers are being steered to health insurance exchanges under the Affordable Care Act (aka the health care reform bill) passed into law in March 2010. In addition to the creation of federal and state-sponsored health insurance exchanges, the private sector, including retailers such as Walgreen, is expected to enter the market. While only consumers enrolled in government-sponsored exchanges are eligible for subsidies, privately-sponsored exchanges could still be competitive by offering subscribers other incentives to join their network.
Some retailers, Sam’s Club comes to mind, already offer select customer groups services, including group health insurance. So the idea of buying coverage from a retailer, rather than through an employer or broker, isn’t unprecedented. Walgreen has moved quickly to capitalize on the transformation of our health care system and is looking for growth opportunities beyond its vast network of retail stores.
The Affordable Care Act mandates the creation of exchanges by 2014. If CNN is correct and Walgreen launches its insurance exchange in the fall, it will get a jump on both government-sponsored plans and any private plans to come along. With the market for health insurance exchanges estimated to be worth billions of dollars, many companies outside the insurance industry are expected to enter this brand new market.
I don’t buy financial products from Allstate or cell phones from LG. I tend to buy products from company’s that are known for those products but I don’t buy the stuff they’ve branched into. Like I don’t buy printers from Dell. Anymore. Once was enough for me, thanks.
That being said, I like Alex’s point about Walgreen’s filling in the gaps in the system. And I am ridiculously loyal to Walgreen’s for prescriptions. And they do keep tweaking their systems to make the whole process easier. Ok, if they could work out the pharmacy staffing problems at my local Walgreen’s AND manage to have Flonase in stock in Austin in March, I would give their insurance a look.
Would you purchase groceries at Wal-Mart or Target Lynett? (BTW: Walgreen sells food now too, and wine and beer!) While I’m happy to buy paper towels and other household cleaning items at Target, and might consider buying a box of cereal, I think I’ll pass on buying fruit or veggies there. But many people do. At least that’s the bet Target has made by adding all that space for fresh food in its stores.
We all have a certain comfort level with a particular retailer or company providing a particular good or service. It’s hard work for companies to change our minds. But when there’s a hole or dysfunction in a market, smart players will rush to fill it. It will be interesting to see (say in five or 10 years) if Walgreen succeeds. In fact, I’m waiting for fall to see it they launch!
I hope they will have decent prices. Our family has no insurance since I became disabled. I priced Costco insurance and it was $1400.00 for family of 4.
I do not expect much as affordable insurance covers nothing and the deductibles are usually 10,000 or higher per family member. My past insurance would tell me my medical test were covered and yet they only would cover one third. Most test CT and MRI’s for example were over $3000.00. Needless to say I am swimming in thousands of dollars in medical bills. After my Cobra ran out I just found out I am uninsurable because I am diabetic. We will see what they have to offer!
Conkal, So many people and their families are in your situation. The Affordable Care Act addresses the problem of preexisting conditions, such as your diabetes. To compete with government-sponsored programs, Walgreen and other new entrants into the insurance exchange market presumably will have to offer coverage to the those who are now uninsurable. Let’s hope some good AFFORDABLE options arise!
I just gave up on Blue Cross Blue Shield for health insurance, even though it was affordable. They were incredibly slow sending me the contract after I applied through ehealthinsurance. It turns out I didn’t have coverage because of a typo, until I cancelled my application 6 weeks after it was filed, even though they had billed my Mastercard right at the outset. Agents I called toll-free kept passing the buck, or hanging up on me, or they would call me and not say who was calling. I am VERY insurable, and trying to the right thing but forget this it was too much of a nightmare. Just to get in the door to have a stable health care provider they rob you of all control, which is a loss of human dignity. At least Walgreen’s is a fixed location, hopefully the service will be more reliable. For now, I am keeping what’s left of my dignity and foregoing health insurance.