MEMPHIS, Tenn. — Dollar store chain Fred’s has launched a card-based program that gives health insurance members discounted healthy groceries and over-the-counter medicines.
Members of an unnamed health insurer get 10% to 15% discounts on 22 eligible products. The program launched Dec. 1 at 140 of the chain’s 800 stores in North Carolina and Georgia. More stores are expected to participate in the future.
Participating products include Kellogg’s cereal, Allen’s canned vegetables and Mucinex OTC medicine. Manufacturers fund the majority of the discounts.
The discounts will complement other health and wellness initiatives at the chain, including a comprehensive diabetes care program, said David Mueller, Fred’s senior vice president of sales and marketing.
“This reinforces our commitment to the pharmacy patient,” Mueller told SN.
The health insurer mailed cards to members who shop at Fred’s. Members use the card at the checkout. It works much like a debit card; once it’s swiped, the discount is automatically provided.
“Rather than pay money out of pocket and get reimbursed, the savings is adjudicated right at the point of sale,” said Jason Trinchero, senior vice president, Medagate, Redwood City, Ga., the provider of the point-of-sale platform at Fred’s.
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