Charleston, WV (WOAY) – U.S. Senator Shelley Moore Capito (R-WV) joined Republican colleagues in a letter to the Government Accountability Office seeking answers on recent baby formula shortages.
The coalition is also requesting an investigation into the impact sole source contracts in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) program may have had.
The United States’ share of formula consumed by a WIC infant is estimated at 50%.
Senators requested a GAO analysis to answer the following questions:
How did the price of infant formula change for both WIC and non-WIC customers after the introduction of sole-source rebates?
How did particular market characteristics such as market concentration, methods of marketing, and barriers to entry impact the size of the rebates offered by manufacturers?
How have sole-source contracting and minimum infant formula stocking requirements impacted independent and small retailers?
What legislative or regulatory changes could improve sole-source contracting? What other measures could address cost containment of infant formula under WIC?
GAO recently confirmed they would conduct the study.