The Economic Costs

In 2005, preterm birth cost the United States at least $26.2 billion, or $51,600 for every infant born preterm. 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 term infants ($3,325).

Average length of a hospital stay for a term infant: 1.5 days
Average length of a hospital stay for a preterm infant: 13 days (nine times as long)

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

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.

November 2006

 


  
  © 2008 March of Dimes Foundation. All rights reserved. The March of Dimes is a not-for-profit organization recognized as tax-exempt under Internal Revenue Code section 501(c)(3). Our mission is to improve the health of babies by preventing birth defects, premature birth, and infant mortality.