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Published on: October 24, 2025
Subsidized Contraception, Fertility, and Sexual Behavior
Melissa S Kearney1, Phillip B Levine
1Department of Economics, Wellesley College, and NBER.
State Medicaid policy changes expanded family planning access, reducing teen and non-teen births. This increased contraception use, averting births at an estimated cost of $6,800 per birth for newly eligible women.
Area of Science:
- Health Services Research
- Public Health Policy
- Reproductive Health
Background:
- Recent state-level Medicaid policy changes have broadened eligibility for family planning services.
- These expansions target higher-income women and individuals nearing benefit expiration.
Purpose of the Study:
- To evaluate the impact of expanded Medicaid eligibility on family planning services.
- To quantify the effects on birth rates, particularly among teens and newly eligible women.
- To assess the cost-effectiveness of averted births resulting from these policy changes.
Main Methods:
- Analysis of state-level Medicaid policy changes affecting family planning services.
- Statistical examination of birth rate reductions among different demographic groups (teens, non-teens, newly eligible women).
- Estimation of the cost per averted birth associated with expanded eligibility.
Main Results:
- The income-based policy change led to a 2% reduction in overall non-teen births and over 4% reduction in teen births.
- A significant estimated decline of 9% in births was observed among newly eligible women.
- The observed fertility reduction is linked to increased contraceptive utilization.
Conclusions:
- Expanded Medicaid eligibility for family planning services effectively reduces birth rates, especially among vulnerable populations.
- The policy demonstrates a cost-effective approach to reproductive health, with an estimated $6,800 cost per averted birth.
- Increased access to contraception is a key mechanism driving the observed declines in fertility.
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