Trends in infant formula rebate contracts : implications for the WIC Program / by Victor Oliveira, Elizabeth Frazão, and David Smallwood.

Format:

Book

Government document

Author/Creator:

Oliveira, Victor J.

Frazão, Elizabeth, author.

Smallwood, David M., author.

Contributor:

United States. Department of Agriculture. Economic Research Service, issuing body.

Series:

Economic information bulletin ; no. 119.

Economic information bulletin ; number 119

Language:

English

Subjects (All):

Special Supplemental Nutrition Program for Women, Infants, and Children (U.S.)--Appropriations and expenditures.

Special Supplemental Nutrition Program for Women, Infants, and Children (U.S.).

Infant formulas--United States--Costs.

Infant formulas.

Rebates--United States.

Rebates.

Infant formula industry--United States.

Infant formula industry.

Expenditures, Public.

United States.

Physical Description:

1 online resource (ii, [2], 27 pages) : color illustrations.

Other Title:

Implications for the WIC Program

Place of Publication:

[Washington, D.C.] : United States Department of Agriculture, Economic Research Service, [2013]

Summary:

The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the major purchaser of infant formula in the United States. To reduce the cost of infant formula to WIC, Federal law requires that WIC State agencies operate a cost containment system for the purchase of infant formula. Typically, WIC State agencies obtain substantial discounts in the form of rebates from the infant formula manufacturers for each can of formula purchased through the program. Contracts are awarded to the manufacturer offering the WIC State agency the lowest net price (as determined by the manufacturer's wholesale price minus the rebate). A previous Economic Research Service study based on data through 2008 found that net prices were increasing, raising concern that this trend, if it continued, could constrain WIC's ability to serve all eligible applicants in the future. This study, based on data through February 2013, allays that concern. Real net prices for contracts in effect in February 2013 decreased by an average 43 percent (or 23 cents per 26 fluid ounces of reconstituted formula) from the previous contracts. As a result, WIC paid $107 million less for infant formula over the course of a year, holding retail markup constant.

Contents:

Introduction

The infant formula market

WIC's infant formula rebate program

Trends in infant formula rebate contracts

Discussion

Appendix A. State dates of current and previous rebate contracts by state

Appendix B. Average monthly number of infants in FY 2012 participating in WIC in areas included in study, by breastfeeding status.

Notes:

Title from title screen (viewed Mar. 3, 2014).

"December 2013."

Accompanied by summary report.

Includes footnotes with bibliographical references, and bibliographical references (pages 23-24).

OCLC:

871256713