Childbirth Costs Burden Families Long After Delivery

United States: A child can lead to serious and perpetual financial strain for families, in spite of insurance benefits, fresh research reveals.

Researchers also found that more than half of those with private insurance had an out-of-pocket expense greater than $1,000 for childbirth, and close to 40 % of respondents were somewhat or very worried about bills for their health care, as reported by HealthDay.

Interestingly, these costs are, as could be expected, most alarming to lower-income families, according to the researchers. Many find it hard to pay their childbirth bills many months and, in some cases, over a year after delivering.

“Out-of-pocket costs related to childbirth or postpartum care come at a time of financial vulnerability for families,” said researcher Heidi Allen, an associate professor with the Columbia University School of Social Work in New York City.

The Added Costs of a New Baby

“There are significant costs associated with a new baby, including diapers and childcare,” Allen said in a Columbia news release. “Additionally, many people take unpaid family leave, and some reduce their hours at work. Making childbirth more affordable should be a public policy priority.”

In the study, the authors used data from a postpartum questionnaire administered to 4,405 women; 2,913 of these women had private insurance and 1,502 were on Medicaid.

Findings from the Study

It was also shown that nearly half lower-income people (less than $60,000 annual income) remain in debt on childbirth expenses 12-14 months after delivery.

A third of these lower-income families (32%) had no payments, and another fifth (21%) had medical debt in collections.

However, the analysis shows that Medicaid is more favorable to the financial situation of families with increasing child count.

Turning attention to the study conducted by researchers, it is established that about a third of Medicaid ERLL members hold no out-of-pocket expenditure on BIH.

Of those Medicaid patients who indeed incurred costs, about a third still owed money, and over a quarter were non-payments 12 to 14 months after delivery.

The costs associated with pregnancy could be reduced by eliminating cost-sharing according to both Medicaid and private insurance from the researchers’ view.

Policy Implications for Reducing Childbirth Costs

“Policies to improve the affordability of childbirth can also be viewed as investments in early child health and development,” commented the researcher Jamie Daw, the Columbia University Mailman School of Public Health assistant professor of health policy and management, as reported by HealthDay.

“It is important to think about the trade-offs families may be forced to make between paying off medical debts related to childbirth and providing their children with resources — like healthy food, adequate housing, and quality childcare — that are important for them to thrive,” Daw added. “This is an often-overlooked consequence of the high medical costs of childbirth in the United States.”