RxKids Program Means Healthy Moms, Healthy Babies, Reduced Healthcare Costs

A mother holding her newborn child. Image courtesy of Jim West

The verdict is in. Providing no-strings-attached cash payments during pregnancy and in the first six months of a newborn’s life improves the health of mothers and babies, while reducing health care costs.

The Rx Kids program, launched by Mayor Sheffield in February, builds on the success of the nation’s first communitywide prenatal and infant cash prescription program, started two years ago in Flint. It was based on the belief that if you eliminate barriers to getting assistance and trust women to spend the money wisely, you’ll improve health for mothers and babies.

Rx Kids provides a one-time $1,500 payment to women who are at least 16 weeks pregnant, as well as $500 each month for the baby’s first six months.

A comprehensive study by Michigan State University of the health outcomes of the Flint program demonstrated clear benefits to the program.

It reversed the trend toward increasing preterm births and low birthweights. After RxKids was started, Flint saw an 18% reduction in preterm births, a 27% reduction in low birthweight, and a roughly 29% decrease in neo-natal ICU admissions.

Also impressive were the economic benefits of the RxKids program, including an estimated $6.2 million savings in healthcare costs. A study by the Upjohn Institute for Employment Research found that the cash payments also contributed to economic growth. Each dollar spent through the RxKids program generated up to $3 for the local economy. Researchers projected that disposable personal income would increase by roughly $15 million annually over the first five years. So far the Detroit program has given about $6 million in direct financial support to almost 3,000 mothers. Check out the city’s website for more information on the Rx Kids program and a portal to apply.