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Manufacturersäó» Bids for WIC Infant Formula Rebate Contracts, 2003-2013
David E. Davis (au); Victor Oliveira (au)
The U.S. Dept. of Agricultureäó»s (USDAäó»s) Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the major purchaser of infant formula in the U.S., and its mandatory rebate program saved WIC $1.9 billion in FY 2013. WIC State agencies are required by law to have competitively bid infant formula rebate contracts with infant formula manufacturers. Contracts are awarded to the manufacturer offering the lowest net price (as determined by the manufactureräó»s wholesale price minus the rebate). This study examines both the winning and losing bids from the infant formula manufacturers for State agency contracts awarded from 2003 to 2013. Only three manufacturers bid on rebate contracts during this period, and bids varied greatly across the contracts. In general, there was a large disparity in the winning real net price bid and the next closest contender. Figures and table. This is a print on demand report.
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