Title: Abortion funding cutoff will likely cost Michigan far more than it saves.

POPLINE Document Number: 102187

Author(s):

Klitsch M

Source citation:

Family Planning Perspectives, 1994 Mar-Apr;26(2):92-3.

Abstract:

In November 1988, Michigan voters approved a referendum that restricted state Medicaid funding of abortions to situations where the woman's life was in danger. The funding restriction saved taxpayers approximately $7 million in 1991, but researchers estimate that about 4130 births in 1991 could be attributed to the cut-off of abortion funds. Michigan's birth rate, which had remained a stable 15/1000 during the 1980s, rose to 16 in 1989 and 16.5 in 1990. This increase of 5.7% from 1988 to 1989 and 3.4% from 1989 to 1990 can be compared to increases of 1.6 and 2.9% for the 2 periods in Indiana and a decrease of 1.5% and increase of 1.7% in Ohio. If all of the increased births in Michigan were attributable to the new funding restriction, then 13,000 additional births occurred in the first 18 months of the policy. Attributing one-half to two-thirds of the increase to the policy results in an annual increase of 4350-5800 births. The Michigan Department of Social Services estimated an increase of 2120 births in 1989 and slightly more in subsequent years. The estimated Medicaid expenditures for these births ranges from $11 to 30 million. Support costs during pregnancy would be $1.4 to 3.8 million. The continuing annual cost of providing public assistance to women affected by the funding cutoff was estimated to be $7.7 to 21 million. With a mean range of 5 years of assistance, the shared state and federal costs of the abortion funding cutoff would range from $50 to 139 million. In 1991, therefore, Michigan saved about $7 million in abortion funding and spent $23-63 million in state funds to support the families of the babies. These figures are affected by inflation, but the cost/savings ratio is likely to remain the same. It is also possible that many women affected by the cutoff of funds could and did pay for an abortion themselves, but other costs to society, such as abuse, neglect, drug addiction, crime, public housing, and food stamps, were not figured into the calculations.

Keywords:

United States
Michigan
Abortion
Funds
Social Welfare
North America
Americas
Developed Countries
Fertility Control, Postconception
Family Planning
Financial Activities
Economic Factors