The purpose of this study is to investigate what factors may be related to the increase in the rate of cesarean sections (c-sections) at New Hampshire (NH) hospitals and assess the relevance of c-sections as a cost driver to the commercial insurance market. This study utilizes integrated hospital discharge and administrative claims data.
The increasing rate of c-sections in NH is consistent with national trends. The amount paid for c-sections in NH is 64 percent higher than for vaginal deliveries, and increases in the amounts paid for c-sections are rising faster than for vaginal deliveries. Overall, the relative payment increases for vaginal deliveries and c-sections are not substantially different than what is observed for hospital admissions in general. Although a c-section is a more expensive alternative to vaginal delivery, the NH experience suggests that csections alone are not an unusual cost driver.
