Policy Proposal: The Childbirth Coverage Act
Objective
To establish a national program covering 90% of childbirth-related costs for U.S. citizens, including prenatal, delivery, and postnatal care, to reduce financial barriers and support maternal and child health.
Key Elements
1. Eligibility:
• U.S. citizenship of the mother.
• Income-based prioritization with a tapering benefit at higher income levels.
2. Coverage Scope:
• Prenatal: 90% of standard prenatal check-ups, screenings.
• Delivery: 90% of hospital or home birth costs, including any necessary procedures.
• Postnatal: 90% of pediatric visits, maternal mental health, and lactation support for six months.
3. Provider Partnerships:
• Facilities provide transparent pricing; federal reimbursement ensures affordability.
• Negotiated payment rates to prevent inflated billing.
4. Funding:
• Funded through federal budget allocations, possible minor payroll tax adjustments, and higher-income contributions.
5. Optional Supplemental Coverage:
• Families can purchase private coverage for the remaining 10%, with plans encouraged to offer affordable rates.
6. Evaluation:
• Annual reporting on program impact, with oversight by an independent advisory board.
Benefits
• Health: Improved maternal and infant health through affordable care.
• Economic Stability: Lower out-of-pocket costs, supporting family finances.
• Cost Savings: Reduced medical complications from better prenatal care.
The Childbirth Coverage Act supports family growth, reduces financial stress, and promotes public health, while addressing childbirth affordability as a societal investment.
To estimate the annual cost of the Childbirth Coverage Act for a U.S. population of approximately 380 million, let’s break down some key factors:
Key Assumptions and Estimates
1. Population and Birth Rate:
• U.S. population: ~380 million.
• Annual birth rate: ~11 births per 1,000 people (based on recent U.S. averages).
• Estimated annual births: 380 million * 0.011 = 4.18 million births.
2. Average Childbirth Cost:
• The average cost of childbirth in the U.S., including prenatal and postnatal care, varies but is estimated around $18,000 per birth for uncomplicated deliveries. Complications can increase costs substantially, averaging $25,000 to $30,000 per birth.
• For simplicity, we’ll assume an average cost of $20,000 per birth.
3. Government Coverage of 90%:
• Under this policy, the government would cover 90% of the $20,000 average cost per birth.
• Government cost per birth: $20,000 * 0.90 = $18,000.
Total Annual Cost Calculation
Using the above estimates, the total annual cost to the government for covering 90% of childbirth expenses would be:
4.18 \text{ million births} \times 18,000 \text{ USD per birth} = 75.24 \text{ billion USD annually}
Additional Considerations
1. High-risk and Complicated Births:
• This estimate assumes a mix of standard and complicated births. If a higher rate of costly, complicated births occurs, this number could rise. Adding a 10% buffer to account for complications could increase the annual cost to around $82.76 billion.
2. Cost Mitigations:
• Incentivizing low-intervention births, improving preventative care, and negotiating standardized rates could contain costs over time, potentially reducing this estimated budget.
3. Economic and Social Benefits:
• While an $80 billion annual investment is substantial, it may yield savings in reduced healthcare costs for mother and child in the long term, increase economic stability for families, and positively impact public health.
Summary
Estimated Annual Cost: $75-83 billion for 90% childbirth cost coverage for approximately 4.18 million births annually.
This investment could significantly alleviate financial strain on families, improve maternal and infant health outcomes, and support broader societal benefits associated with accessible childbirth care.