Unintended Consequences, Babies, and the State Health Care Exchange
The Exchange would implement Obamacare in Michigan, putting roughly half of the 1.3 million uninsured onto Medicaid. At a time when expecting mothers in Michigan already have trouble finding a doctor to deliver their baby, the law, contrary to its good intentions, will only make the situation worse:
“Medicaid pays less than it costs to staff and operate a labor and delivery service,” William Russell, CEO of Three Rivers Health, said in testimony before the House Appropriations Subcommittee on the Community Health Budget in March. “In Three Rivers, 70 percent of our labor and delivery services are to Medicaid patients. A delivery costs roughly $5,000, and Medicaid pays us just under $3,000 for mother and child.
“When you lose significant dollars on every delivery, it is only a matter of time before that service must be eliminated.”
In the world of policy, intentions do not drive results and outcomes. Like gravity, you can not ignore the rules of simple economics. Odd outcomes, like delivery services being eliminated, is only likely to increase with the passage of the State Exchange.
Contact your State Representative today! If you don’t, who will?