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j   Congressional Budget Office
       Cost Estimate


February 20, 2020


By Fiscal Year, Millions of Dollars 2020             2020-2025             2020-2030
Direct Spending (Outlays)              0                   0                     0


Revenues
Increase or Decrease ()
in the Deficit


0

0


0


0


Under current law, Department of Veterans Affairs (VA) may pay for neonatal health care
for up to seven days after birth for newborn children of female veterans who receive
maternity care from the department. Section 3 of S. 3182 would authorize VA to pay for
more than seven days of neonatal health care provided to those children. It also would allow
the department to reimburse those veterans for the cost of emergency transportation of those
newborn children by ambulance or airlift to receive neonatal care. Implementing the bill
would cost $135 million over the 2020-2025 period, CBO estimates. Such spending would
be subject to the availability of appropriated funds.

Using data from VA, CBO estimates that 15 percent (or about 580) of the 3,840 births
covered by VA each year are complicated births (for example, premature delivery, low birth
weight, and fetal-growth retardation) that require neonatal care for more than seven days.
According to the Agency for Healthcare Research and Quality, complicated births require
inpatient neonatal care for an average of 18 days. On the basis of information from VA, CBO
estimates that the average daily cost for complicated births is about $3,800. After adjusting
for anticipated inflation and assuming enactment in the second half of 2020, CBO estimates
that removing the seven-day limit on payments for neonatal care would cost $131 million
over the 2020-2025 period.




                See also CBO's Cost Estimates Explained, www cbo gov/publication /54437;
  How CBO Prepares Cost Estimates, www.cbo.gov/publicationi53519; and Glossary, www cbo~govipubication/42904.

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