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Walmart opens their first Pharmacy in 1978. Walmart opens the first Vision Center in 1991. By 2006, Walmart has about 3,810 pharmacies all over USA. Walmart begins offering a $4 generic prescription drug plan. Walmart Insurance Services LLC The new Avatar of Walmart Walmart has consistently ranked number 1 on the Fortune 500 listing since 2014 and with their entrance into the Medicare Advantage ecosystem it looks like they intend to stay on top. While it may be a shock to some that Walmart, one of the biggest names in the retail industry, is entering the Medicare industry, there are signals that this has been a prolonged target since the early 2000's. A Timeline of Walmart's Healthcare Ecosystem Strategy 1978 1991 2006

Walmart Insurance Services LLC The new Avatar of Walmart...Walmart launches Walmart Care Clinics in April. Clinics cost $40 for walk-in and $4 for employees. Walmart is able to price

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Page 1: Walmart Insurance Services LLC The new Avatar of Walmart...Walmart launches Walmart Care Clinics in April. Clinics cost $40 for walk-in and $4 for employees. Walmart is able to price

• Walmart opens their first Pharmacy in 1978.

• Walmart opens the first Vision Center in 1991.

• By 2006, Walmart has about 3,810 pharmacies all over USA.

• Walmart begins offering a $4 generic prescription drug plan.

Walmart Insurance Services LLC

The new Avatar of Walmart

Walmart has consistently ranked number 1 on the Fortune 500 listing since 2014 and with their entrance into the Medicare Advantage ecosystem it looks like they intend to stay on top. While it may be a shock to some that Walmart, one of the

biggest names in the retail industry, is entering the Medicare industry, there are

signals that this has been a prolonged target since the early 2000's.

A Timeline of Walmart's Healthcare Ecosystem Strategy

1978

1991

2006

2010

Page 2: Walmart Insurance Services LLC The new Avatar of Walmart...Walmart launches Walmart Care Clinics in April. Clinics cost $40 for walk-in and $4 for employees. Walmart is able to price

Walmart sends a 14-page letter to health providers and companies

requesting information to help it establish "the largest provider of primary

health care services in the nation" in November.

• Walmart partners with Humana to provide new PDP plan (Humana Walmart-

Preferred Rx Plan (PDP)) during AEP.

• The plan offered the lowest premium for a PDP plan ($14.8) and boasted a

savings value of over $450.

• Walmart announced the beginning of a pilot program with MetLife to sell

prepaid life insurance policies to shoppers at 200 of the retailer’s locations in South Carolina and Georgia in October.

Speaking at the Foundation of Associated Industries of Florida's 2013 Health

Care Affordability Summit, Marcus Osborne—Walmart's vice president of

health and wellness payer relations—was asked whether the retailer plans

to pursue retail clinics in rural areas. He said, "That's where we're going now:

full primary care services in five to seven years."

Walmart launches Walmart Care Clinics in April.

Clinics cost $40 for walk-in and $4 for employees.

Walmart is able to price it that low, in part, because the clinics are staffed by

nurse practitioners from Quadmed, a provider of on-site workplace clinics.

Texas, South Carolina and Georgia become first states to have such clinics.

2010

2011

2012

2013

2014

Page 3: Walmart Insurance Services LLC The new Avatar of Walmart...Walmart launches Walmart Care Clinics in April. Clinics cost $40 for walk-in and $4 for employees. Walmart is able to price

• Walmart teamed up with DirectHealth.com in October to launch Healthcare Begins Here, an in-store program designed to educate customers on health

insurance options. Walmart assigned 2,700 insurance agents across its

4,300 U.S. locations through open enrollment season to help customers

determine if they are eligible through exchanges, Medicaid or Medicare

options.

• Walmart introduces Walmart wellness day.

• Walmart holds Americas biggest health fair - "Walmart wellness day" - on

October 10th in over 4,000 stores.

• Free blood glucose, blood pressure, vision screenings, product samples and health insurance information are made available.

• In addition, more than 10,000 of Walmart’s licensed pharmacists offered immunizations in select stores.

• A collaboration with Anthem is announced in August to provide increased

access to OTC medicines with an anticipated launch of January, 2019.

• Walmart tries to acquire Humana for an undisclosed amount but the acquisition fails.

• Walmart announces partnership with Beacon Health Options in November and opens the 1st mental health clinic in Texas. The partnership further

expands in 2020.

2014 (cont.)

2015

2018

Page 4: Walmart Insurance Services LLC The new Avatar of Walmart...Walmart launches Walmart Care Clinics in April. Clinics cost $40 for walk-in and $4 for employees. Walmart is able to price

• Walmart opens first health center in Dallas, Georgia on September 13th and opens 2 more in Georgia by early 2020.

• Appointments cost $40 for adults and $20 for children.

• By partnering with local providers, the new Walmart Health Center will deliver services including primary care, labs, X-ray and EKG, counseling, dental, optical, hearing, community health (nutritional services, fitness), health insurance education and enrollment all in one facility, conveniently located outside the store with a separate entrance for customers. The clinic will provide low, transparent pricing for key health services for local families, regardless of insurance status.

• Opens a new Health Center in Springdale, Arkansas on June 24th with plans to open more in the state.

• Acquired startup CareZone's medication management platform to help customers keep track of their prescriptions on June 15th.

• Partnered with PBM startup Capital Rx, which provides health plans real-

time information on prescription drug prices on July 7th.

• Announces plan to open health centers in Florida on July 22nd.

• Walmart enters insurance market with Walmart Insurance Services LLC on July

7th.

Conclusion

According to Bloomberg, in 2018, Walmart’s pharmacy, optical, and OTC drug

business generated $36 billion in revenue. With the introduction of Walmart

Insurance Services LLC, coupled with the aggressive expansion strategy of their

Health Centers, Walmart is sending a clear signal that they intent to disrupt the

healthcare ecosystem, including Medicare Advantage. With cheaper alternatives and

complete vertical integration, their business strategy looks at providing consumers

the lowest cost of healthcare possible with maximum reach. The current healthcare environment, shaken up by the COVID-19 pandemic, may also work in Walmart's favor. By providing Clinical options, in convenient locations, with medical care & medication fulfillment at highly competitive rates, has the potential to allow rapid expansion and gain customer loyalty.

2019

2020

2020