WIC Research, Policy and Practice Hub WIC Research, Policy and Practice Hub

Rebates


WIC and the Retail Price of Infant Formula

Rebates from infant formula manufacturers to State agencies that administer the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) support over one-quarter of all WIC participants. However, concerns have been raised that WIC and its infant formula rebate program may significantly affect the infant formula prices faced by non-WIC consumers. This report presents findings from the most comprehensive national study of infant formula prices at the retail level. For a given set of wholesale prices, WIC and its infant formula rebate program resulted in modest increases in the supermarket price of infant formula, especially in States with a high percentage of WIC formula-fed infants. However, lower-priced infant formulas are available to non-WIC consumers in most areas of the country, and the number of these lower priced alternatives is increasing over time.


Manufacturers’ Bids for WIC Infant Formula Rebate Contracts, 2003-2013

USDA’s Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the major purchaser of infant formula in the United States. WIC State agencies are required to have competitively bid infant formula rebate contracts with infant formula manufacturers. This study analyzes the winning and losing bids from the infant formula manufacturers (July 2015).