AAP News Vol. 3 No. 2 February 1987, p. 15
© 1987 American Academy of Pediatrics
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No major market impact?

John W. Bode 1

1 Assistant Secretary for Food and Consumer Services, USDA

The recent AAP policy statement titled "The Pediatrician's Responsibility for Infant Nutrition" dealt in part with the Special Supplemental Food Program for Women, Infants and Children (WIC). The U.S. Department of Agriculture administers the WIC program in partnership with state and local health officials.

The policy statement noted concern about recent initiatives being considered by a few state health departments to reduce the cost of infant formula in the WIC program through competitive bidding, also called rebate systems. The goal is to reduce the cost of infant formula to the WIC program (normally in the form of rebates from the selected manufacturer to the state WIC program) and, thereby, to permit more needy women, infants and children to be served at no added cost to the government. For example, if formula comprises 30 percent of a state WIC program's food costs and competitive bidding for rebates permits a 25 percent reduction in formula costs, then a state could serve about 8 percent more people in WIC.