Allowable reimbursement levels.—
(i) In general .—
(i)In general .—#
The State agency shall establish allowable reimbursement levels for supplemental foods for each vendor peer group that ensure—
(I) that payments to vendors in the vendor peer group reflect competitive retail prices; and
(II) that the State agency does not reimburse a vendor for supplemental foods at a level that would make the vendor ineligible for authorization under the criteria established under subparagraph (B).
(i)(I)#
that payments to vendors in the vendor peer group reflect competitive retail prices; and
(i)(II)#
that the State agency does not reimburse a vendor for supplemental foods at a level that would make the vendor ineligible for authorization under the criteria established under subparagraph (B).
(ii)Price fluctuations .—#
The allowable reimbursement levels may include a factor to reflect fluctuations in wholesale prices.
(iii)Participant access .—#
In establishing allowable reimbursement levels, the State agency shall consider participant access in a geographic area.