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Medicaid costs and birth outcomes: The effects of prenatal WIC participation and the use of prenatal care

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  • Barbara Devaney
  • Linda Bilheimer
  • Jennifer Schore

Abstract

This study examines the effects of prenatal WIC participation and the use of prenatal care on Medicaid costs and birth outcomes in five states-Florida, Minnesota, North Carolina, South Carolina, and Texas. The study period is 1987 for Florida, Minnesota, North Carolina, and South Carolina and January-June 1988 for Texas. Prenatal WIC participation was associated with substantial savings in Medicaid costs during the first 60 days after birth, with estimates ranging from $277 in Minnesota to $598 in North Carolina. For every dollar spent on the prenatal WIC program, the associated savings in Medicaid costs during the first 60 days ranged from $1.77 to $3.13 across the five states. Receiving inadequate levels of prenatal care was associated with increases in Medicaid costs ranging from $210 in Florida to $1,184 in Minnesota. Prenatal WIC participation was associated with higher newborn birthweight, while receiving inadequate prenatal care was associated with lower birthweight.

Suggested Citation

  • Barbara Devaney & Linda Bilheimer & Jennifer Schore, 1992. "Medicaid costs and birth outcomes: The effects of prenatal WIC participation and the use of prenatal care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(4), pages 573-592.
    • Handle: RePEc:wly:jpamgt:v:11:y:1992:i:4:p:573-592
    DOI: 10.2307/3324956
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    References listed on IDEAS

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    1. Schramm, W.F., 1985. "WIC prenatal participation and its relationship to newborn Medicaid costs in Missouri: A cost/benefit analysis," American Journal of Public Health, American Public Health Association, vol. 75(8), pages 851-857.
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