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Because research shows that formula fed babies incur higher health care costs (click to read), this results in increased expenditures for Medicaid and private insurers, and can potentially drive up premiums. Research also shows that mothers of formula fed babies miss more time from work, resulting in decreased economic productivity -- Click to read more,

Where did we get $700?
Our WIC reference shows over a $700 price difference between formulas marketed by hospitals, and store brands. A conservative estimate shows the name brands cost 66% more. Other sources show an even greater difference in price. The Sam?s Club website shows $.82 per ounce of name-brand powder (in bulk) compared to $.32 for their own brand? more than twice as much.

Research shows brand loyalty runs high with consumers of baby formula. Parents are often hesitant to switch to a different brand if they know their baby is tolerating the expensive brand they started in the hospital.