The WIC Program is required by USDA to contain costs wherever possible. This includes the requirement that vendors agree to maintain prices for WIC foods which are competitive as determined by the Department. As you know, the Michigan WIC program monitors prices being charged to the WIC program through the establishment and adjustment of maximum prices to be paid to vendors for each food item.
Based on a comprehensive state-wide price analysis, it has been determined that there are a number of food items where price levels are no longer considered competitive.
At this time, the focus is on infant formula. As part of a comprehensive review, the USDA looked at current wholesale prices charged to WIC authorized vendors throughout the state for each of the infant formulas listed below. Based on the average wholesale price of approximately $15.00 per can, USDA has determined that a maximum price adjustment for these products is required to return the prices of these products to competitive levels.
This price adjustment will be effective on or about May 1, 2014:
12.5 ounce can of Enfamil Premium powder
12.4 oz can of Enfamil Gentlease powder
12.9 oz can Prosobee powder
USDA will be sending notices to all WIC vendors statewide informing them of this action.
In an effort to maintain all WIC Food items at competitive levels, and to ensure the WIC Program continues to meet its cost containment mandate, USDA may be adjusting the maximum price paid for other products in the future. Vendors will be notified well in advance of any future adjustments.