A Wicked Problem? Cost Containment in the Women, Infants and Children Program. (23rd March 2015)

• Record Type: Journal Article
• Authors: Saitone, Tina L.; Sexton, Richard J.; Volpe, Richard J.
• Is Part Of: Applied economic perspectives and policy. Volume 37:Number 3(2015)
• Page Start: 378
• Page End: 402
• Publication Date: 2015-03-23
• Subjects: Women Infants and Children -- cost containment -- food access -- safety net; Agriculture -- Economic aspects -- Periodicals; Agriculture and state -- Periodicals; 338.105
• DOI: 10.1093/aepp/ppv005
• Languages: English
• ISSNs: 2040-5790

Abstract

Abstract: The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) Program is a key part of America's safety net, but its structure fails to incentivize participants to be cost‐conscious in their purchases and may cause retailers to attach excessive markups to WIC products. We investigate cost containment in the WIC Program, with a focus on California. Results show that smaller vendors often charge considerably higher prices for WIC foods than their larger counterparts. However, larger vendors do not mark up WIC foods more or promote them less than comparable control products. Cost containment can be improved by targeting WIC Program sales to larger vendors when it is possible to do so without compromising participant access, and using large‐vendor prices as a benchmark to limit prices set by smaller vendors.