A benefit-cost analysis of family planning services in Iowa
Levey, L.M.; Nyman, J.A.; Haugaard, J.
Evaluation and the Health Professions 11(4): 403-424
1988
ISSN/ISBN: 0163-2787 PMID: 10312809 DOI: 10.1177/016327878801100401Document Number: 360205
This benefit-cost analysis of family planning services in Iowa weights primarily tax-financed family planning services against tax-financed income transfer programs (Medicaid, Aid to Families with Dependent Children [AFDC] and food stamps). The study reveals that benefits of family planning services are costs for 14-19 year olds and 20-29 year olds already receiving AFDC, food stamps, and Medicaid. Overall benefits decline over the 4 age groups, e.g., 14-19 year olds-19.37:1; 20-29 year olds-7.46:1; 30-34 years olds-3.14:1; and 35-44 year olds-2.11:1 all based on 5 year cost savings. The 1 year benefit-cost ratio shows, however, that for women over 29 the family planning benefits are costs (30-34 year olds-.93:1 and 35-44 year olds-.64:1). Costs averted for teenagers based on 5 year projections are greater by a multiple of 6.6 over their 1 year savings (1 year-2.95:1; 5 year-19.37:1) compared to a multiple of approximately 3.3 in the remaining age groups. The study also demonstrated that for those women who presently do not receive family planning benefits but who would receive public assistance at the time of birth of after birth are much those who already receive income assistance and Medicaid, e.g., 5 year benefit-cost ratio for 14-19 year olds-36.70:1 (delivery reimbursement not included) and 37.38:1 (delivery reimbursement included). Except in the short term for women over 29, the benefits of family planning in Iowa outweighs the costs. The benefits to taxpayers comes in supporting family planning services to teenagers, especially those of marginal income for whom the birth of a child would almost certainly mean dependence on public assistance.