IVF Externalities

This post co-authored with Robert J. Stillman, M.D., FACOG, Medical Director, Emeritus of Shady Grove Fertility, Rockville, MD.A recent article in theAmerican Economic Reviewexamines externalities —behaviors that impose unpriced costs on third parties—in the context ofin vitro fertilization (IVF).[1] Patients often pay for IVF treatment out of pocket while the costs associated with birth are almost always covered by insurance. Because of this difference in who pays, and how patient choices can impact the size of birth costs, externalities are created when patients ’ decisions impose increased costs on third parties.Patients who pay for IVF treatment with their own funds face a tradeoff between the number of embryos transferred, IVF success rate, and the likelihood of more expensive multiple births. While improved IVF laboratory technology has increased the success rates with just a single embryo for many patients, others feel (at times correctly) they may improve the likelihood of a successful birth of at least one infant if they transfer more than one embryo at no additional cost.That strategy, however, increases the likelihood of twins or triplets with greater medical costs for which the patients do not explicitly pay. IVF patients now account for approximately 50 percent of all higher-order births, “which are generally four (twins) to sixteen (triplets) times more expensive than a singleton birth.”[2] The average cost of a single IVF birth and associated medical ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs