Rising Out-of-Pocket Childbirth Costs Push Families into Debt

The rising cost of childbirth is leaving many American families with significant debt, even when they have insurance. Jessica and Jimmy Hurley from Springfield, Illinois, experienced this firsthand when their twin boys were born two months early. Their premature births, including one via emergency C-section, required a prolonged stay in the neonatal intensive care unit (NICU), resulting in mounting medical bills. Despite being insured through Jimmy's union, their plan's annual out-of-pocket cap of $28,500 reset at the start of the new calendar year, leaving them with over $80,000 in medical bills after insurance coverage. The financial burden forced them to negotiate their debts, eventually reducing their balance to $11,500, but not without significant sacrifices, including avoiding treatment for postpartum depression. Health economist Dr. Nora Becker from the University of Michigan explained that families with employer-provided insurance often face high deductibles, pushing many into financial strain. While the average out-of-pocket cost for childbirth is $3,600, nearly 25% of families face expenses exceeding $5,000. Dr. Becker advises families to review their insurance plans before childbirth, consider lower-deductible options, and negotiate large bills if they arise. However, for families like the Hurleys, the experience has had lasting financial and emotional impacts.