In the United Kingdom, the average cost for giving birth is $2,300, but the National Health Service covers the entire cost of pregnancy and childbirth. Indeed, the vast majority of developed countries have national health services that cover most standard healthcare costs, including having a baby. As the debate about public healthcare continues to rage on in the United States, people in other developed countries look on at the US in amazement when they learn that the average new mother with insurance pays around $4,500 for her labor and delivery.
Insurance Deductibles Massively Affect the Cost of Having a Baby in the US
According to the latest study by Health Affairs, the average out-of-pocket cost for having a baby in the US was $4,500 in 2015, which was up from $2,910 in 2008. Meanwhile, the study found that the cost of cesarean birth in the US went up from $3,364 to $5,161 over the same period. The study, which took place at the University of Michigan, looked at 657,061 women from the States who had health insurance through their jobs and who gave birth between 2008 and 2015. The costs of all treatments and services used in the year before delivery were examined. The authors of the research study concluded that the reason for the increase in costs wasn’t to do with the procedures or technologies used in childbirth. Instead, they found it was the high rise in insurance deductibles that were primarily responsible. More and more Americans have found themselves on insurance plans with high deductibles in recent years as more employers have shifted the cost of healthcare onto employees.
Having a Baby Is More Expensive in Some States Than Others
While insurance deductibles are largely responsible for the increase in costs for having a baby in the US, the cost of childbirth depends on where you live as well. The expenses differ depending on the policies of the state you live in.
A Closer Look at Employer-based Insurance
Under the 2010 Affordable Care Act, employer-based insurance has to cover maternity services. The problem is many insurance companies pass on costs to the individual in the form of co-payments and deductibles. According to the Health Affairs study, 60% of women aged between 19 and 64 are covered by employer-based insurance plans. And the co-pays and deductibles can mount up so much that they are difficult for lower-income people to pay. The findings of the study highlight that there’s an opportunity for state and federal policymakers to make some changes. After all, with the average cost of having a baby being $4,500, many mothers-to-be simply cannot afford the co-payments and deductibles, which leads to debt. And no new mother wants to be in that position. In the worst-case scenario, the financial burdens on new parents can lead to delayed or deferred healthcare.
The Cost of Having a Baby Can Be Even Greater for Unplanned Pregnancies
Not all pregnancies are planned, of course. In fact, around 45% of pregnancies in the US are unplanned. That can create more financial burden. The reason is parents who do not plan pregnancies will probably have not signed up for insurance coverage that takes care of things like delivery costs. Without the right insurance policy in place, the amount needed for having a baby can become staggering and unaffordable. Furthermore, the cost of delivery is only one part of the expenses required for having a child. Long after hospital bills have been paid, parents need to find the money for things like clothes, diapers, food, and daycare. Therefore, when people have unplanned pregnancies, they can soon spiral into debt, which isn’t good for the parents or the baby.
