Medical costs for a premature baby are much, much greater than they are for a healthy newborn. In 2005, preterm birth cost the United States at least $26.2 billion, or $51,600 for every infant born prematurely. The costs broke down as follows:

• $16.9 billion (65 percent) for medical care
• $1.9 billion (7 percent) for maternal delivery
• $611 million (2 percent) for early intervention services
• $1.1. billion (4 percent) for special education services
• $5.7 billion (22 percent) for lost household and labor market productivity

The average first-year medical costs, including both inpatient and outpatient care, were about 10 times greater for preterm infants ($32,325) than for full-term infants ($3,325).

These estimates come from Preterm Birth: Causes, Consequences and Prevention, a report published by the Institute of Medicine (2006) and funded in part by the March of Dimes.

To learn more about the cost of prematurity, read The Cost to Business. 

Who Pays the Bill?
You do. All health care payers—employers, health plans, federal and state Medicaid programs, and individuals—share the cost of caring for premature babies.

March 2009