• Posted November 8, 2024

Childbirth Can Bring Worrying Medical Bills, Even With Insurance

Having a child can cause significant and ongoing financial hardship for new parents, even if they are covered by health insurance, a new study shows.

More than half of people with private insurance spent more than $1,000 out of pocket on childbirth, and nearly 40% reported being somewhat or very worried about paying their health care bills, researchers report.

As could be expected, these costs are most troubling to lower-income families, researchers said. Many continue to grapple with childbirth bills a year or more after delivery.

“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.

“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.”

For the study, researchers surveyed more than 4,400 people following childbirth, of whom about 2,900 were covered by private insurance and 1,500 were on Medicaid.

Results showed that nearly half of lower-income people (less than about $60,000 a year) still owed money for childbirth costs 12 to 14 months following delivery.

About 1 in 6 of these lower-income families (16%) hadn’t made any payments yet, and 1 in 5 had medical debt in collections.

Comparatively, Medicaid appears to protect the finances of growing families.

About 80% of Medicaid enrollees had no out-of-pocket spending on childbirth, researchers found.

Of those Medicaid patients who did rack up out-of-pocket expenses, 1 in 3 still owed money and more than 1 in 4 hadn’t made any payments 12 to 14 months after birth.

The new study was published Nov. 5 in the Milbank Quarterly.

Both Medicaid and private insurers could support families by eliminating cost-sharing related to pregnancy, the researchers said.

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

“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.”

More information

Families USA has more on the cost of childbirth in America.

SOURCE: Columbia University, news release, Nov. 6, 2024