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7 Evaluation of Cost
Pages 315-336

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From page 315...
... As part of the committee's strategy to emphasize consideration of the value of the food packages for the mother–infant dyad (described in Chapter 6) , this chapter also presents comparisons of the market value of the current and revised food packages for the three types of mother–infant pairs: fully breastfeeding, partially breastfeeding, and fully formula-feeding.
From page 316...
... These spreadsheets also detailed the nutrient composition of each food in each package.1 The spreadsheets were linked to participation numbers so the weighted average per-participant food package costs could be estimated for both the revised and current food packages. The difference in the weighted-average, perparticipant cost of a single food package between the committee's final, proposed set of revised food packages and the current set of food packages was required to be cost neutral, specifically no greater or less than $0.10.
From page 317...
... As a result of its proposed option for an infant to be partially breastfed in the first 30 days, the committee anticipates that 5 percent of the formula-fed infants and 5 percent of women who were postpartum for 6 months or less but not breastfeeding were shifted to their respective partially breastfeeding categories.3 Additionally, in the current food packages, postpartum women who are not breastfeeding no longer receive WIC benefits after 6 months (food package VI)
From page 318...
... Partially breastfed I-BF/FF-B 14 68,202 17 81,684 0–3.9 months Fully breastfed I-BF-A 13 66,196 13 66,196 Subtotals 100 493,460 100 493,461 4–5.9 months Fully formula-fed I-FF-B 72 208,617 69 198,187 Partially breastfed I-BF/FF-C 17 48,142 17 58,573 Fully breastfed I-BF-B 11 32,095 11 32,095 Subtotals 100 288,855 100 288,855 6–12 months Fully formula-fed II-FF 76 710,344 72 674,827 Partially breastfed II-BF/FF 12 108,321 15 143,838 Fully breastfed II-BF 12 114,338 12 114,338 Subtotals 100 933,003 100 933,003 Totals for infants 1,715,318 1,715,319 Children 1–1.9 years IV-A 30 1,257,128 30 1,257,128 2–4.9 years IV-B 70 2,875,993 70 2,875,993 Totals for children 100 4,133,121 100 4,133,121
From page 319...
... a The participant distribution for the current and revised food packages are the same, with one exception. For the revised food packages, 5 percent of formula-fed infants and postpartum, nonbreastfeeding women were shifted to the partially breastfeeding packages.
From page 320...
... The committee had no information on either the costs of medical foods or portions of these costs paid by WIC. Thus, the food package III costs presented here account only for foods in the corresponding age and physiological state food package.
From page 321...
... The specific assumptions applied for cost are presented in Appendix R, Tables R-1 and R-2. As mentioned previously, the information used to weight the proportions of particular foods for each WIC food category came from different sources, including the USDA-FNS redemption dataset, the Food Package Report series, and/or data from individual states.
From page 322...
... For each food package, a composite was developed depending on whether participants are issued both legumes and peanut butter each month or only one of these options. In this example, the ratio of canned to dry legumes typically redeemed was ascertained from the USDA-FNS redemption dataset.
From page 323...
... Cost of Substitutions The revised set of food packages include the same substitutions that are permitted in the current food packages, plus some additional options. In addition to covering all the foods in the basic WIC food categories (formula, infant foods, milk, cheese, peanut butter, beans, whole wheat bread [grains]
From page 324...
... New whole grain options were not included in the revised food package grain composite because there is no available information upon which to base an assumption about redemption. Estimating Per-Participant Program Costs for Food To estimate weighted-average, per-participant food package costs for the current and revised food packages, the estimated number of participants who received each package in 2015 (see Table 7-1)
From page 325...
... In contrast, the committee's evaluation of WIC food package costs was based primarily on the USDA-FNS redemption dataset, which was the best available for this purpose at the time of this analysis. Potential reasons for differences between the USDA-FNS value and the committee's value are discussed below.
From page 326...
... TABLE 7-2  Estimated Costs of Basic Foods, Selected Substitutions, and Net Cost Changes Resulting from Selected 326 Substitutions in WIC Food Packages Food item Cost per Difference in Cost Substitution Quantity Quantity Substitution with Substitution Milk, whole 1 qt $0.86 Milk, whole 3 qt $2.57 Yogurt 1 qt $3.22 1 qt yogurt for 1 qt milk +$2.36 Cheese 1 lb $5.33 1 lb cheese for 3 qt milk +$2.75 Tofu 1 lb $2.26 1 lb tofu for 1 qt milk +$1.41 Soy beverage 1 qt $1.82 1 qt soy beverage for 1 qt milk +$0.96 Milk, low fat 1 qt $0.82 Milk, low fat 3 qt $2.45 Yogurt 1 qt $3.22 1 qt yogurt for 1 qt milk +$2.40 Cheese 1 lb $5.33 1 lb cheese for 3 qt milk +$2.87 Tofu 1 lb $2.26 1 lb tofu for 1 qt milk +$1.45 Soy beverage 1 qt $1.82 1 qt soy beverage for 1 qt milk +$1.00 Beans, dry 1 lb $1.50 Beans, canned 4 × 16 oz $4.06 Four, 16-oz cans of beans for 1 lb dry beans +$2.55 Whole wheat bread* 18 to 24 oz $2.65 Whole wheat bread 16 oz $2.35 16 oz whole wheat bread for 18 to 24 oz whole wheat bread −$0.30 Teff 16 to 24 oz $6.98 16 to 24 oz teff for 18 to 24 oz whole wheat bread +$4.33 Buckwheat 16 to 24 oz $6.89 16 to 24 oz buckwheat for 18 to 24 oz whole wheat bread +$4.24 Cornmeal 16 to 24 oz $2.38 16 to 24 oz cornmeal for 18 to 24 oz whole wheat bread −$0.27
From page 327...
... This may be an overestimation of cost for some substitutions, for instance corn tortillas, for which 16 ounces is a commonly available size, however, the average IRI price is automatically weighted by the most common size purchased. Brown rice, barley, and wheat tortillas were not evaluated as substitutions for whole wheat bread as they comprise less than 1 percent of substitutions redeemed, based on redemption data made available to the committee.
From page 328...
...   Infants I-FF-A Formula fed, 0–3 months $53.68 $53.68 $57.11 $57.11 I-FF-B Formula fed, 4–5 months $59.10 $59.10 $62.88 $62.88 I-BF/FF-A Partially breastfed, 0–1 months $6.48 $6.48 $6.90 $6.90 I-BF/FF-B Partially breastfed, 1–3 months $26.44 $26.44 $28.12 $28.12 I-BF/FF-C Partially breastfed, 4–5 months $31.80 $31.80 $33.83 $33.83 I-BF-A Fully breastfed, 0–3 months $0.00 $0.00 $0.00 $0.00 I-BF-B Fully breastfed, 4–5 months $0.00 $0.00 $0.00 $0.00 I FP I average weighted by participation $43.57 $42.52 $46.35 $45.24 II-FF Formula fed, 6–11 months $56.34 $57.48 $72.70 $68.48 II-BF/FF Partially breastfed, 6–11 months $36.89 $38.03 $52.01 $47.79 II-BF Fully breastfed, 6–11 months $34.23 $22.17 $79.68 $39.39 II FP II average weighted by participation $51.37 $50.15 $71.15 $61.72 III-I and III-II Infants with special dietary needs, nonexempt $26.40 $26.95 $34.20 $32.18 formula and food, weighted by participation
From page 329...
... Prices were from USDA-FNS redemption data, CPI-adjusted to 2015, with the exception of infant formula, revised package whole wheat bread and alternatives, and yogurt, which were from the 2014 IRI Consumer Network Database. a Participants of these ages receiving food package III were folded into the appropriate age-and physiological state category to capture issued foods.
From page 330...
... Ensuring Cost Neutrality The committee was tasked with ensuring that the revised food packages are cost-neutral. For the purposes of this review, cost-neutral means that the weighted-average, per-participant cost of each of the food packages I through VII in the revised set of food packages falls within $0.10 of the weighted-average, per-participant cost of the current set of food packages.
From page 331...
... For the revised partially breastfeeding dyad packages, this difference is $94. Most of these differences in the costs of the dyad packages come from revisions to the food packages for the breastfeeding mothers.
From page 332...
... SOURCES: Personal communication, K Castellanos-Brown, USDA-FNS, April 7, 2016, and June 30, 2016; BLS, 2016; 2014 IRI Consumer Network Database.
From page 333...
... for Current and Revised Food Packages for Mother–Infant Dyads   Fully Breastfeeding   Partially Breastfeeding   Fully Formula Feeding Cost per Number Cost per Cost per Number Cost per Cost per Number Cost per Participant Category Month of Months Year   Month of Months Year   Month of Months Year Current Food Package Mother $74.16 12 $889.96 $58.70 12 $704.40 $46.58 6 $279.46 Infant, 0≤1 months $0.00 1 $0.00 $19.47 1 $19.47 $161.21 1 $161.21 Infant, 1–3 months $0.00 3 $0.00 $79.39 3 $238.16 $161.21 3 $483.62 Infant, 4–5 months $0.00 2 $0.00 $95.49 2 $190.98 $177.50 2 $354.99 Infant, 6–11 months $79.68 6 $478.06 $96.86 6 $581.18 $155.28 6 $931.68 Total Cost: $1,368.02 $1,734.19 $2,210.97 Revised Food Package Mother $78.71 12 $944.55 $64.31 12 $771.66 $47.14 6 $282.85 Infant, 0≤1 months $0.00 1 $0.00 $19.47 1 $19.47 $161.21 1 $161.21 Infant, 1–3 months $0.00 3 $0.00 $79.39 3 $238.16 $161.21 3 $483.62 Infant, 4–5 months $0.00 2 $0.00 $95.49 2 $190.98 $177.50 2 $354.99 Infant, 6–11 months $39.39 6 $236.37 $92.64 6 $555.85 $151.06 6 $906.35 Total Cost:   $1,180.92      $1,776.13      $2,189.03 NOTES: Prices were from the USDA-FNS redemption dataset, with the exception of infant formula, yogurt, and revised package whole wheat bread and alternatives, which were from IRI 2014. All prices were adjusted to FY2015.
From page 334...
... . However, the annualized prerebate market value of the revised food package for the fully breastfeeding mother is $55 higher and for the partially breastfeeding dyad is $67 higher than the value of the current food packages for them, respectively.
From page 335...
... The annualized costs of the revised food packages for the breastfeeding dyads, as redeemed, are slightly higher than that of the current breastfeeding dyad packages. Similarly, the annualized costs of the revised food packages for breastfeeding women, as redeemed, are higher compared to the costs of the current food packages for these women.
From page 336...
... : Revisions in the WIC food packages. Final Rule, 7 C.F.R.


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