CHARLEVOIX, MI -- A new report done by the Michigan League for Human Services shows two out of five births were paid for by state taxpayers between 2000 and 2009, and local hospitals say this is a cause for concern.
In 2009, there were 19,000 fewer births in the State of Michigan compared to the year 2000. But there is one thing that's on the increase and that's the number of births paid for by Medicaid.
"It’s just the high cost of health insurance that's driving this. It’s not that we have more lower income families working in our area, it's just health insurance costs a lot of money," says Pat Fralick, Director of Health and Community Services with the Health Department of Northwest Michigan.
Fralick says there are several employers that simply can't afford the costs, and that's why more women are turning to Medicaid coverage.
Right Start Michigan and its Counties 2011 report, a study done by the Michigan League for Human Services, compiled date between 2000 and 2009 and found nearly 43 percent of births were paid for by tax dollars. And in several Northern Michigan counties, that number is higher. 45 percent of births in Charlevoix and Emmet County, more than one out of every two births in Otsego and Wexford County, and nearly seven out of ten births in Roscommon County were covered by Medicaid.
“This is a reason that they have to try to find a solution to this because families are struggling in our area and it's affecting our healthcare system," said Fralick.
"It’s a concern, because it hurts the hospital because we're not being reimbursed for our services," said Mary Terryberry, OB Nurse Manager at Charlevoix Area Hospital.
Terryberry has seen a steady increase of Medicaid births in the past few years, and at Otsego Memorial Hospital, so has CEO Tom Lemon. In a statement, Lemon says Medicaid reimbursement is 60 percent less than regular insurance. It does affect their bottom line, but they still are committed to provide the care.
“We're trying to prevent greater costs later by giving access to women with prenatal care, that's the important thing," said Fralick.
And here's another interesting fact of the study: by 2010, one out of every two Michigan mothers was eligible for Medicaid for their newborn.
MORE INFORMATION:
A mother is eligible for Medicaid if she makes less than 185 percent of the poverty level. In this study’s case, the woman had to have a household income less than $27,000 a year to be eligible. This year, the woman has to make $27,900 or less.
The Right Start Michigan and its Counties 2011 report also looks at the percentages of unhealthy babies. Michigan ranks 31st in the nation for babies born too soon and 36th for babies born too small.
The number of unmarried women giving birth has jumped 20 percent according to the report. 40 percent of all births in 2009 were to unmarried women.
To read the full report presented by the Michigan League for Human Services, CLICK HERE.