In the United States, the financial burden of giving birth continues to rise, particularly impacting young Americans who find themselves grappling with substantial medical debt to cover childbirth expenses.
The Median Cost of Vaginal Birth
Recent data reveals that the median cost for a vaginal birth in the United States, with the assistance of an in-network doctor, hovers around $13,000. However, this figure varies according to the state and health insurance provider, with certain states seeing this cost escalate to nearly $20,000. These soaring childbirth expenses are causing significant financial strain for many young Americans.
C-Section and Vaginal Birth Costs
In the case of C-section deliveries, the median cost for an in-network procedure in the U.S. stood at approximately $15,500 in the previous year, while a vaginal birth with no complications carried a median price of almost $13,000, according to the FAIR Health’s cost of giving birth tracker. For out-of-network births, the national median price more than doubles, as reported by the same tracker.
Factors Driving the Cost Up
Several factors have contributed to the escalating costs of childbirth in recent years. Factors include inflation, technological advancements, a shortage of healthcare workers, among others. This has led to an increase of 22 percent in the price of deliveries and childbirth hospital stays between 2017 and 2021, according to data from the Health Care Cost Institute’s 2021 Health Care Cost and Utilization Report.
Financial Stress and Medical Debt
For many expecting parents, the exorbitant costs of childbirth have become a source of immense stress and, in many cases, have resulted in substantial medical debt. An example is Sadie Peterson, aged 28, who felt fortunate when she had her first child in 2020. Peterson and her husband had managed to save $7,000 before their baby was born, and her health insurance from her job covered a significant portion of her C-section and hospital stay expenses, leaving her with an out-of-pocket cost of approximately $5,000. Her friends and family also contributed to the essential supplies required for a newborn.
However, with the impending arrival of her second child in December, Peterson’s situation has changed. She is no longer employed and has switched health insurance providers, expecting to shoulder a bill of roughly $12,000 for the upcoming delivery. Peterson remarked, “It’s crazy that having a kid is like buying a new car now.”
Varied Costs Based on Location and Coverage
The amount individuals spend on childbirth varies according to their location and healthcare coverage. Those covered by Medicaid incur little to no out-of-pocket expenses. In contrast, individuals with private insurance or employer-sponsored health care coverage are witnessing an increase in their financial responsibility due to rising deductibles and other forms of cost-sharing.
Hospital Prices on the Rise
Hospital prices have witnessed the most significant growth across the economy. Analysis by the American Enterprise Institute indicates that the cost of hospital services has surged by 200 percent since the year 2000. This escalation is attributed to increased concentration, advanced and costly technology, and insurance coverage that mitigates the impact of price increases on patients.
Additional factors include inflation, a shortage of healthcare workforce, rising labor and drug costs, and hospitals treating sicker patients due to the aging population and care deferment during the pandemic, as highlighted by the American Hospital Association (AHA).
Mitigating Financial Pressure
Hospitals are striving to secure higher reimbursements from insurers to cope with increased financial pressure and lost revenue. The AHA suggests that hospitals cannot raise prices like conventional businesses, such as grocery stores and airlines. However, they aim to secure higher reimbursements from insurers, many of which have reported record profits in recent years.
