Employers bracing for a post-pandemic baby boom can rest easy. A spike in post-pandemic pre- and postnatal healthcare costs, as well as an influx of maternity and paternity leaves, aren’t likely to come to fruition.
While nationwide data on birth numbers isn’t expected to come until later this year, an Associated Press analysis of data from 25 states indicates that the anticipated baby boom looks more like a bust. Recently released data by the CDC and the U.S. Census Bureau also supports much of the same.
The data indicates that births have fallen dramatically in many states during the coronavirus outbreak. Births for all of 2020 were down 4.3% from 2019. Still, more tellingly, births in December 2020 and in January and February 2021 (nine months or more after the spring 2020 lockdowns) were down 6.5%, 9.3%, and 10%, respectively, when compared with the same periods a year earlier.
Together these declines account for an 8% decline versus a year ago, making this period the lowest the birthrate has dropped in over 40 years. This is good news for employers since childbirth and newborn care are oftentimes the most expensive medical conditions billed to employer-based insurers.
That said, falling birthrates present a host of other challenges that dwarf high claims costs.