Women, Infants and Children (WIC)

Vendor Cost Containment

Last Modified: 02/12/2014

WIC Vendor Cost Containment - Final Rule - Correction

The purpose of this rule is to add two sentences which the Office of the Federal Register (OFR) inadvertently omitted when the original vendor cost containment final rule was published on October 8, 2009. The first sentence permits State agencies to exclude partially-redeemed food instruments from a quarterly cost neutrality assessment if this exclusion is based on an empirical methodology approved by FNS. The second sentence prohibits State agencies from excluding food instruments from a quarterly cost neutrality assessment based on a rate of partially-redeemed food instruments. These two sentences codify existing FNS policy. This correction rule is effective on March 30, 2010.

WIC Vendor Cost Containment - Final Rule

The WIC vendor cost containment final rule was published on October 8, 2009, concluding all of the WIC-related rulemakings required by the Child Nutrition and WIC Reauthorization Act of 2004, P.L. 108-265. This final rule follows up on an interim rule which was published in 2005. Based on the requirements of the Act, the interim rule addressed the rising costs of vendors that had more WIC sales than non-WIC sales, referred to as "above-50-percent vendors," by requiring that such vendors must be cost neutral for the program. Under these provisions, the WIC State agency may pay such vendors no more on average per food instrument than the State agency pays all other vendors statewide. The final rule makes only minor adjustments to the provisions of the interim rule, providing simplification and exemption processes to reduce the administrative burden of WIC State agencies, and providing additional due process protections for vendors. The final rule is effective on November 9, 2009.

 

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