This interim rule, published August 23, 2000, strengthens and simplifies current bidding requirements for using a single-supplier competitive system to provide a rebate for infant formulas. It requires WIC State agencies to award infant formula rebate contracts based on the lowest net price, allowing the highest rebate as a basis of award only when the weighted average retail prices of the different brands of infant formula vary by 5 percent or less. It also requires bid evaluations to be based on a standardized amount of infant formula based on the maximum amount of infant formula allowed under the package requirements.
This interim rule also requires medical documentation for the following before issuing: contract brand infant formula that does not meet the requirements of an iron-fortified infant formula; non-contract brand infant formula; exempt infant formula; and WIC-eligible medical food. In addition, medical documentation must include: the brand name of the WIC formula prescribed; medical diagnosis warranting the issuance of WIC formula; length of time the prescribed WIC formula is medically required by the participant; and signature or name of the requesting health care professional.
Reminder: The comment period on this interim rule ends Aug. 23, 2001.