I was re-reading an old letter written by my grandfather in which he mentions the birth of my aunt, which cost $60 to the hospital and $60 to the doctor. This was in 1941 and was paid out of pocket. In 2008 dollars it comes to $1,736.38.
The cost of having a baby today? According to this website it's anywhere from $9,000-$17,000. One important difference is that in the 1940s one typically paid with cash, while now it is typically paid for with insurance. There are also substantial qualitative differences, given the technology available now and much improved pre-natal care.
However, we find quality increases elsewhere without a corresponding surge in prices. In 1941 the average cost of a car was $925, which is $13,384.57 in 2008 dollars. Here's what a typical car looked like in 1941:
1940 DodgeIn 2009, however, you can purchase a new Chevrolet Aveo for around $13,650, which includes features someone in 1941 probably couldn't even conceive of such as a CD player and air conditioning.
AveoThe biggest problem facing health care is the overuse of insurance. Until that is eliminated cost increases will continue to be the order of the day.
1 comment:
With two kids born at the University of Michigan Hospital earlier this decade and paid for by the BCBS HMO offerred by my employer, I can confirm that modern childbirths do cost that much nowadays. That's for a routine birth that involved an eperdural and some pitocin that have been in use for years. Honestly, the type of information gathered and monitored during my two daughters' births seems pretty much the same as what my mom said was gathered for my birth. The technology may have improved, but the features or type of information really didn't change.
On a side note, I will post a similar thread on how much the automobile industry has innovated over the past twenty years when it comes to engines. It was inspired by an article I read in this month's Ward's Auto World, and happens to dovetail nicely with this topic. The innovation is simply amazing.
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