In the absence of the savings from competitive bidding, WIC either would need a substantially larger appropriation or would serve substantially fewer women, infants, and young children at nutritional risk. These rebates mean that WIC obtains infant formula at a large discount, generating $1.3 billion to $2 billion a year in savings that allows WIC to serve 2 million more participants each year with its federal funding. Infant formula manufacturers provide substantial discounts, in the form of rebates, to state WIC programs in return for the exclusive right to provide their products to the state’s WIC participants. WIC is also cost-effective, and its competitive bidding process for purchasing infant formula is essential to its efficiency. Extensive research has documented that WIC is extremely effective: participating in WIC improves low-income families’ nutrition and health, leading to healthier babies, more nutritious diets and better health care for children, and higher academic achievement for students. The Special Supplemental Nutrition Program for Women, Infants, and Children, popularly known as WIC, provides nutritious foods, counseling on healthy eating, breastfeeding support, and health care referrals to nearly 8 million low-income women, infants, and children at nutritional risk.
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