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Diane Publishing Books
Trends in Infant Formula Rebate Contracts: Implications for the WIC Program
Victor Oliveira (au); Elizabeth Frazao (au); David Smallwood (au)
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the major purchaser of infant formula in the U.S. To reduce the cost of infant formula to WIC, Federal law requires that WIC State agencies operate a cost containmentsystem for the purchase of infant formula. Typically, WIC State agencies obtain substantial discounts in the form of rebates from the infant formula manufacturersfor each can of formula purchased through the program. Contracts are awarded to the manufacturer offering the WIC State agency the lowest net price. A previous study found that net prices were increasing, raising concern that this trend, if it continued, could constrain WICäó»s ability to serve all eligible applicants in the future. This study, based on data through Feb. 2013, allays that concern. Real net prices for contracts in effect in Feb. 2013 decreased by an average 43% from the previous contracts, so WIC paid $107 million less for infant formula over the course of a year, holding retail markup constant. Tables and figures. This is a print on demand report.
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