Wal-Mart Stores (WMT) and Humana (HUM) are teaming up to offer a Medicare prescription drug coverage plan that they say will be the cheapest on the market.

Premiums for the Humana Walmart-Preferred Rx Plan will be $14.80 a month, less than half the average premium for Medicare prescription drug plans this year, the companies said in a statement.

"We know every dollar counts, especially when you live on a fixed income. We believe no one should have to choose between buying their groceries or their medications," said John Agwunobi, president of Walmart's health and wellness division.

The new plan will be available in 2011 in all 50 states plus Washington, DC.

Some generic drugs will also be available for co-payments as low as $2 when using Wal-Mart and Sam's Club pharmacies.

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