Wal-Mart creates free generic prescription drug program for Caterpillar employees

NEW YORK More than 70,000 employees from construction equipment manufacturer Caterpillar will get free generic drugs under a trial program with Wal-Mart, according to Reuters.

The program will cover 2,500 generic drugs, but employees who sign up for it will not have to make co-pays for them. An official from Caterpillar told Reuters that the program was the first of its kind because the company is bypassing its pharmacy benefits manager and negotiating directly with the mass-market retailer, thus allowing it to save money.

Analysts have said they will watch the program to see if it leads other retailers, such as retail pharmacies, to emulate it.