The formula shortage has caused tremendous stress for families who rely upon federally funded food assistance programs.
— 1.5 million — received benefits from WIC in 2021. That purchasing power drove significant cost savings on infant formula for the federal and state governments that run the program. But the program’s massive purchasing also limits choices for families and can make it hard for mothers like Abbott to get formula that is a good fit for their infants.
Under the arrangement, the companies give state WIC programs significant rebates for the formula they buy. For every $1 WIC pays to the formula companies, it gets back as much as 93 cents in rebates, explained David Betson, an associate professor of economics and public policy at the University of Notre Dame who has studied the WIC program., according to the USDA.
“Parents often have to experiment a little bit and often end up trying three or more formulas to find the formula that keeps their baby comfortable,” said, an assistant professor who studies infant nutrition at the University of Rochester Medical Center.
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