Using WIC EBT Data to Make Program Decisions€¦ · price for peanut butter, dry beans, and canned...
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20 th Annual EBT: The Next Generation Conference Clearwater, Florida November 5-8, 2017 Using WIC EBT Data to Make Program Decisions Presenter: Art Burger, President/CEO [email protected] Knowledge You Can Trust!
Transcript of Using WIC EBT Data to Make Program Decisions€¦ · price for peanut butter, dry beans, and canned...
20th Annual EBT: The Next Generation Conference
Clearwater, FloridaNovember 5-8, 2017
Using WIC EBT Data to Make Program Decisions
Presenter:Art Burger, President/CEO
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WIC’s Impact in the Marketplace
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By its very structure, WIC disrupts the flow of commerce in the grocery business environment
by mandating product offerings, pricing structures, checkout transaction processes, and
revenue accounting.
Some WIC Cost Containment Strategies Aggravate this Phenomenon
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Precision is Important
“Lowering maximum purchase price without a thorough analysis can result in many thousands of food instruments above normal being rejected for payment.”
The WIC Papers, WIC Merchant Coordinators of the Southeast Region, December 1985, Atlanta, GA, pg. 9.
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To Be Effective Cost Containment/Compliance Measures Must Be “Real World” Driven
“The [WIC] edit limits have, in general, been set in an arbitrary fashion without regard to the cost-benefit or statistical considerations. Many states shift their edit limits over time in a trail and error fashion, e.g. if “too many” checks are flagged at the 20 percent edit limit, the limit is moved to 25 percent or 30 percent until the right number (the number the state staff can handle) is reached.”
WIC State Agency Guide to Vendor Monitoring, A. Burger and S. Stollmack, January 1982, Washington, DC
Typical Deficiencies in Current Peer Grouping Methods
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Too Few Stores in a Group to provide Stable, Reliable Results
Grouping by Location (e.g. County, BEA) Results in Comparing Retailers Who are not Competitors in Their Respective Markets
Dated Criteria Erodes Validity Due to Changes in Marketplace (e.g. Consolidation; Big Box Outlets; Upscale, etc.)
WIC Vendor Peer Group Study, Altarum Institute, May 2017
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“Food Basket” Cost Analysis
The complete food baskets included an average per unit price for peanut butter, dry beans, and canned beans.
The child food basket included peanut butter only.
WIC Vendor Peer Group Study, Altarum Institute, May 2017
Quantity
Cheese
Eggs
Cereal
Legumes
Fruits & Veggies
Whole Grain
Reduced fat milk
Bottled Juice
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How is Peer Grouping Relevant to Effective Cost Containment and Program Integrity?
Federal Regulations Call
for WIC to Consider
Participant Access and Small
Business Needs
Stores Differ on Inventory and
Pricing Practices
Stores Compete on Basis of Business
Dynamics
Competitive Stocking and
Pricing are Key
Why Does Better Peer Grouping Make a Difference
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FOR WIC
Common WIC Practice to Set NTEs by Peer Group
Easy for Most Stakeholders to Understand/Accept
Allows Optimum Participant Access
FOR STORES
Each Store Evaluated on its Own Merits
Reduces Need to Limited No. of Authorizations
Best Opportunity for Small Business
Reduces WIC Visibility
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Evidence Has Long Suggested that WIC Fares Best When it is Transparent in the Marketplace
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Employing the “Business Model” to define peer groups allows for
commerce-driven cost containment and compliance promotion initiatives
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10 WIC Vendor Peer Group Study, Altarum Institute, May 2
Snapshot Peer Group StudyCATEGORY STORE NAMES / CRITERIA FOR CATEGORIZING STORES
Mass Merchandiser* Retailer that sells a wide variety of merchandise but also carries groceries and has outlets in most or all States
Discount and Limited- Assortment Chains†
Retailer that primarily sells a limited variety of low-cost merchandise but also carries a limited variety of food items
National Grocery Chain Retailer that primarily sells groceries with outlets in most or all States (>30)
National Drug Chain‡ Pharmacy retailer that sells a limited variety of food items with outlets in most or all States (>30) Regional Grocery Chain Retailer that primarily sells groceries with at least 11 outlets and operates in 2 or more States
Local Grocery Chain Retailer that primarily sells groceries with at least 11 outlets and operates in only one State Independent Grocery Retailer that primarily sells groceries with less than 11 outlets Regional or Local Drug Pharmacy retailer that sells a limited variety of food and is not a national drug chain
Other Island stores, remote location stores, tribal-owned stores, general stores, specialty markets (meat, kosher, deli)
A50, WIC Only Store that derives more than 50 percent of its total annual food sales revenue from WIC food instruments
Commissary Grocery store operated by the U.S. Defense Commissary Agency within the confines of a military installation; it can fit within any of the grocery formats
Convenience, liquor, gas stations Retailer with a limited assortment of grocery items
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Conditions of Effective PG Systems
WIC Vendor Peer Group Study, Altarum Institute, May 2017
Group stores in terms of characteristics that are known to be correlated with food costs and other business practices and characteristics that ultimately predict vendor prices (or demonstrate a correlation with those costs).
Condition 1
Minimize both the overlap of mean food prices between peer groups and the influence of individual vendors on mean food prices within a peer group.
Condition 2
The Market Can Behave
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CA WIC 2 dz. Eggs, 2 Gal Milk, 2 lbs. Cheese
Expanding the Business Model
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Chains and Annual Shelf RealignmentSmall Independents and Volume-based Stocking
Minimums Owner Compliance Practices Certification Routine Sourcing of Wholesale Product Purchase
Data (Example: Florida WIC)
Learning to Read the Signals
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Milk 1 quart (n=2551)
$1.00
$1.10
$1.20
$1.30
$1.40
1 Register 2 Registers 3-4 Registers 5-6 Registers 7-9 Registers 10-13Registers
14+Registers
MeanPrice
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Milk 1 gallon (n=3059)
$2.20
$2.40
$2.60
$2.80
$3.00
$3.20
1 Register 2 Registers 3-4 Registers 5-6 Registers 7-9 Registers 10-13Registers
14+Registers
MeanPrice
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Eggs 1 Dozen (n=2549)
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
1 Register 2 Registers 3-4 Registers 5-6 Registers 7-9 Registers 10-13Registers
14+Registers
MeanPrice
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Fluid Milk 1 Ga. -- Means by Registersn=3691
$2.17
$2.00
$2.20
$2.40
$2.60
$2.80
$3.00
$3.20
$3.40
$3.60
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No. of Registers
Mea
n Pr
ice
MeanPrice byRegisters
Linear(MeanPrice byRegisters)
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Number of Registers
Aver
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Red
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4 Cans of Powered Similac Advanced
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Number of Registers
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Other Areas of Inquiry Using EBT Data
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Participant Preferences
Efficacy of Shopping-
Related Nutrition Education
Assessment of High Risk Participant
Cohort Purchasing
Patterns
Questions and Contact Information
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Art BurgerBurger, Carroll & Associates
5 Bisbee Court #109-45Santa Fe, NM 87508505-982-9880 main
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