Study: Giving Birth in the US Now Comes with the Hefty Price Tag of $20,000

A new study revealed that giving birth now has a steep price tag, considering that the median household income is just $67,521.

The study by Kaiser Family Foundation used data from the IBM Health Analytics MarketScan Commercial Claims and Encounters Database, which houses health claims from more than two million women in the past two years.

From 2018 to 2020, around 2,267,200 women aged 15 to 49 enrolled in large employer private health plans reported their healthcare costs. 

Cost of pregnancy, delivery, and post-partum care

New moms incur $18,865 for pregnancy, delivery, and postpartum care if covered under large insurance plans. Most insurance companies cover an average of $16,011, leaving mothers to pay $2,854 out-of-pocket, depending on the delivery method.

Vaginal deliveries cost significantly lesser than the caesarian section, costing $14,768, yet incurring $2,655 out-of-pocket expenses. The c-section costs $26,280 with $3,214 out of pocket. Women who also give birth through c-section pay an extra $500 out of pocket for childbirth-related expenses compared to women who have a vaginal birth.

Intensive care is necessary after a c-section for recovery or complications.

The study also cited that for families with an average household income, the cost of childbirth and related expenses are unaffordable. One-third of multiperson households and half of the single-person households also do not have the cash to pay the out-of-pocket medical expenses related to pregnancy.

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Alternative childbirth methods

The cost of childbirth may change if one is considering alternative delivery methods. Some moms opt for the less clinical and, hopefully, less expensive, wherein they use a midwife for maternity care, delivering at the birth center, or having the baby at home.

The cost is significantly lowered for these births, but moms will not have access to high-tech medical care if something goes wrong. Moms report that the cost of delivery at the birthing center or home birth with the midwife costs around $3,000. Coverage for midwives and birthing centers varies per insurance plan, Value Penguin says.

The golden price tag of raising a child

Researchers noted that there is also an exponential increase in childbirth for the first time in seven years. Considering the incredible cost of living, childbirth is unaffordable, not to mention the cost of raising the kid, with steep childcare costs and other costs towards adulthood, per the New York Post. 

The study only focused on childbirth. The foundation, however, notes that the total cost of raising a child from infancy to adulthood is overwhelming, especially when the inflation is a 9.1 percent increase, hiking an average family's expenses to $500.

According to the U.S. Department of Agriculture, raising a child in a middle-income, married couple until 17 costs around $233,610. The cost does not include a college education. The report indicated that housing, food, and education are the highest child-related expenses.

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