Cost Containment

Summarized by Plex Health
Last Updated: 10 May 2022

The Special Supplemental Nutrition Program for Women, Infants and Children has a solid performance history of extending taxpayer bucks in order to work as many low-income, nutritionally at-risk women, babies and children as possible. As modern technology and the WIC food packages change over time, WIC state agencies must routinely assess and boost their food cost containment methods. OIG suggested that FNS share with WIC state firms a few of the food cost containment methods that reveal promise for lowering WIC food prices in 2 vital areas: 1 supplier management and 2 option and permission of supplementary foods. WIC state firms have flexibility to develop vendor management systems that meet their distinct needs. CPSC ought to be identified by WIC state agencies in accordance with federal WIC regulations and the Interim Guidance on WIC Vendor Cost Containment June 2006 and should avert authorization of vendors with costs that are not competitive, except in cases where a vendor is needed for individual gain access to e. g. , a remote location within a state or an island off the state. Since CPSC and MARLs are developed at the colleagues degree, the development of audio and manageable peer groups is a vital component of vendor cost containment. Each WIC state agency need to examine food items that meet WIC qualification requirements stated in the federal regulations, and authorizing supplementary foods that may be bought by its individuals. Authorize generic/store brands: 76% of WIC state agencies accredit generic/store brand names in at least one food classification. Limit authorized package dimensions: 74% of WIC state agencies limit the plan sizes of accredited foods in at least one group, while making certain that participants have the ability to obtain their complete certified benefit. Since food things usually cost less per unit in larger package sizes, state firms can achieve financial savings by not licensing package sizes that are smaller sized than essential to meet government WIC laws. Reduce variety of flavors, forms/types or brands accredited: 61% of WIC state firms have lowered the variety of brand names or tastes authorized in a minimum of one food group. Lower the number of national brand names licensed: 29% of WIC state agencies have eliminated nationwide brands in at least one food classification. National brand names usually cost more than generic/store brand names, thus cost savings are attained when participants are only provided the choice to purchase generic/store brand names. FNS urges all WIC state companies to analyze these plan options and identify whether they might be implemented in a fashion that would lower food costs without negatively influencing program participation, intake of extra foods, or individual accessibility to supplementary foods.

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