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WIC infant formula rebates may have led to wholesale price increases in the 1990s -- GAO.

This article was originally published in The Tan Sheet

Executive Summary

WIC INFANT FORMULA MANUFACTURERS COVERING PRODUCTION COSTS, GAO concludes in a report on sole-source rebates and infant formula prices related to the Special Supplemental Nutrition Program for Women, Infants & Children. WIC provides federal grants to the states for food including infant formula as well as health care and nutrition education for low-income women and children. One of the questions the General Accounting Office addressed in its May 11 report to the House Budget Committee is whether non-WIC consumers subsidize WIC through what they pay for infant formula ("The Tan Sheet" March 23, p. 9). GAO believes they do not.
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