Finance and Payment Innovation: Improving Equity in Perinatal Care and Maternal and Infant Outcomes

While the U.S. spends approximately $111 billion per year on perinatal (prenatal, birth and newborn) care, maternal and infant health outcomes are among the worst of any high-income nation and racial disparities continue. Efforts to improve outcomes generally focus on coverage, health care delivery systems and payments. Many innovations and ideas have emerged in recent years. This brief will help stakeholders concerned with maternal and infant health in Michigan understand the strengths and weaknesses of payment reforms for maternity or perinatal care, costs, and outcomes, including their impact on equity. The role of Medicaid and the beneficiaries it covers are emphasized, including Michigan data and examples from other states' efforts. This work is based on information from published studies, efforts of federal and state agencies, and national expert recommendations. Maternal Child Health (MCH) leaders inside and outside of government can use this information to support the design and development of any proposed perinatal payment reforms.