What Takes 90 Minutes and Costs $2,382.92?


Published On: May 7th, 2009

BabyHaving a kid is expensive — $36,625, say, for an uncomplicated delivery in a Los Angeles hospital. That was the total of the list charges for the WSJ’s Anna Wilde Matthews, who gave birth to a baby boy in December.

In her column today, she wades into the various charges associated with the delivery — including $2,382.92 for spending 90 minutes in the birthing room after the delivery — as a way to discuss the morass that is health-care finance.

In typical fashion, the rates negotiated by Matthews’s insurer, Aetna, were far lower than list price; the negotiated rate was about $17,300, she said. Also familiar: The difficulty in figuring out ahead of time what the procedure was likely to cost.

Before the delivery, an Aetna representative told Matthews she had to spend another $1,370 before reaching her out-of-pocket maximum for the year. The rep didn’t mention that the baby would come with its own deductible and out-of-pocket maximum, effectively adding to what Matthews would owe.

Bonus Cost: Read about Princeton economist Uwe Reinhardt’s suggestions for fixing the “rampant price discrimination inherent in current hospital pricing.”


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What Takes 90 Minutes and Costs $2,382.92?

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