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Diane Publishing Books
Rising Infant Formula Costs to the WIC Program: Recent Trends in Rebates and Wholesale Prices
Victor Oliveiro (au); Elizabeth Frazao (au); David Smallwood (au)
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides participating infants with free infant formula. Between 57 and 68 percent of all infant formula sold in the U.S. was purchased through WIC, and that formula costs to the WIC program have increased. WIC State agencies receive substantial rebates from manufacturers for each can of formula provided through the program. After adjusting for inflation, net wholesale prices increased by an average 73% for 26 fluid ounces of reconstituted formula between States’ contracts in effect in Dec. 2008 and the States’ previous contracts. As a result of the increase in real net wholesale prices, WIC paid about $127 million more for infant formula over the course of a year. Illus.
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