Friday, July 07, 2006

State offering new formula

Richmond, Va.

"The Virginia Department of Health says a new company is being used to provide formula for the program. Under the new contract, the program will receive more than 24-point-five (m) million dollars a year in rebates on cans of formula purchased through the program... More than 30,000 infants in the program use the formula..." http://www.wjla.com/news/stories/0706/342098.html Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Please, someone, tell me how the formula companies can afford these multi-million dollar "rebates", which are, of course, tax deductible for them, if the state were really getting the lowest possible pricing?

And how could be this massive over-pricing be occurring if the industry is not colluding on pricing?

I’m not sure, but I think that this means that Virginia residents’ tax dollars are being overspent by at least $24.5 million, and, then, on top of this, our federal tax dollars are paying for the tax deduction claimed by the company against this gift/rebate to the state.

As a result, Virginian tax payers are paying twice, and the formula companies are earning twice.

And the formula companies are getting richer – just read the market news...


1 comment:

MsTinkerbell said...

What an outrage but not a surprise.
It's unfortunate that many Big companies take unfair advantage continually!