The Magnitude and Determinants of Partial Redemptions of Food Benefits in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC)

Purpose: WIC provides food assistance to low-income pregnant and postpartum women, infants, and children ages 1- 4. A partial redemption (PR) occurs when a participant redeems only a portion of the prescribed benefit, thereby not obtaining the full nutritional benefit. We study the magnitude and determinants of PRs using electronic benefit transfer data.

Design/setting: Statistical analysis of all WIC transactions from Feb 2016 to Nov 2018.

Subjects: Oklahoma WIC participants.

Measures: The probability of a WIC household fully redeeming a food category. A random effects probit model is used to study determinants of PRs.

Analysis: Estimate the marginal effects of key variables on households' likelihood of full redemption: location-urban/rural, number of members in WIC, duration in the program, number of shopping trips, shopping venue, and prescribed foods.

Results: Overall 18.5% of $ value of benefits are unredeemed, 29.3% excluding formula. Some foods have PRs > 40%. Only 17.3% of households fully redeem benefits in a given month. PRs increase with number of household members in WIC and duration of participation. PRs are lower for participants in rural locations, who shop more frequently, and who shop at WIC-specialized stores.

Conclusions: Food packages with high PRs fail to impart prescribed benefits. Results pinpoint products and household characteristics associated with PRs, enabling targeted nutritional counseling and suggest food package choices need to be made with participant acceptance in mind.