New Peer Grouping Methodology for Traditional WIC (TWIC) Vendors

Beginning January 2022, the Texas WIC Program will implement the new USDA-approved Peer Grouping Methodology. As discussed in previous Vendor Quarterly Webinars, the new Peer Grouping Methodology will consist of seven unique groups instead of the previous 18. Texas WIC will begin the preparation phase now to allow vendors time to adjust to the new changes over the next few months.

Texas WIC is required to implement Peer Grouping to control costs by grouping vendors based on price regions and sales volume bands.

 

Summary of Changes to TWIC Peer Grouping Method

New Price Region

Current Price Region

001

001, 002, 003, 005, 006, 011, 014, 016

004

004

007

007, 008, 012, 015

009

009

010

010, 013

996

996

997

997

 

  • Military Commissaries (Price Region 997) will no longer be separated by Sales Volume Bands. No change to Sales Volume Bands for all other accounts.
  • No change to Predominantly WIC (PWIC) accounts.

Preparation Phase: August through December 2021

  • The current Monthly Peer Group Assignment email will be updated to include a new field notifying each vendor what the proposed Peer Group would be under the new methodology for each specified month.
  • Monthly Price Region Averages for the current and new Peer Groups will be posted on our website under the Cost Containment for EBT. This contains the group average as well as the 125% amounts for Maximum Allowable Reimbursement (MAR).
  • Texas WIC will email notices of non-competitive pricing to any vendor exceeding the 110% threshold under the new Peer Grouping Methodology. These notices will be for informational purposes during the preparation phase and allow for any technical assistance if needed.

Texas WIC is ready to assist our vendor partners. Should you have any questions regarding this Vendor News Flash, please contact the Vendor Management Unit’s Compliance Oversight Branch at [email protected] or 1-800-252-9629. Find more WIC vendor resources on our website at bit.ly/TexasWICVendors.

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