Some pundits have recently commented on other blogs that the birth rate seems to be declining among middle class citizens.
In my opinion much of this terrible trend is caused by economics – newly minted healthcare insurance plans that no longer just require co-pays, but have a huge first contribution.
When a family has to pay the first $6,000 in healthcare costs in a year – having a baby is suddenly a very expensive proposition, especially if you are below the median $32,000 annual earnings level.
It doesn’t impact Medicaid pregnancies for the poor (virtually no cost), nor do the rich consider $6,000 much more than chump change.
A single plan doesn’t cover any costs of pregnancy. And if you get a family plan when already pregnant, it doesn’t cover childbirth or its complications, if any.
So, it is not just inequality of income that is threatening to destroy the middle class, it is the extreme costs of having a baby, even with insurance.
Another result of this high healthcare pregnancy cost is its affect on marriage rates. A single woman with no income qualifies for Medicaid, which pays for her childbirth at no real cost to her. If married most women would find that their husband’s income raises their family to a level that does not qualify for Medicaid. Not surprisingly, folks figure out what is best for their finances and don’t get married, as shown by declining marriage rates.