Impact of Medicaid Enrollment Timing on Infant Birth Costs

This report examines the relationship between the timing of Medicaid enrollment during pregnancy and the associated costs of infant births, particularly focusing on those requiring Neonatal Intensive Care Unit (NICU) admissions. The analysis utilizes claims data from Elevance Health’s Medicaid plans across 18 states, encompassing approximately 48,000 deliveries from January to December 2022. It highlights that later enrollment in Medicaid correlates with significantly higher birth costs for both NICU and non-NICU deliveries. For instance, infants born to mothers who enrolled in the third trimester incurred average costs of $25,106 for NICU admissions compared to $14,132 for those enrolling in the first trimester. The report underscores the importance of timely access to prenatal care facilitated by early Medicaid enrollment, which is crucial for improving birth outcomes and potentially reducing NICU admissions. It also discusses barriers faced by Medicaid beneficiaries in accessing prenatal care and suggests policy recommendations for enhancing enrollment processes to support healthier pregnancies.