Milwaukee County eliminates birth tax, Dane County to follow

MILWAUKEE, Wis. -- Milwaukee County Executive David Crowley announced Wednesday his administration fulfilled a promise to expunge inequitable birth cost recovery judgements, thereby eliminating over $67 million in medical debt actions against young families.

The Birth Tax, formerly known as "Birth Cost Recovery," is a policy to collect a portion of the cost of birth and delivery from the father of the baby if the mother is enrolled in Medicaid and the couple is unmarried at the time of birth. There is no birth tax if the couple is married. ABC for Health said after years of incremental policy changes, Milwaukee County eliminated the unjust policy against unmarried parents under the leadership of Supervisor Caroline Gomez-Tom.

ABC for Health said the birth tax is not like child support: None of the money collected directly supports children or affected families. Instead, it reimburses Medicaid expenses by collecting funds from the new family during the child's early life. The birth tax remains in effect in multiple counties in Wisconsin.

ABC for Health said it is keeping a close eye on Dane County, which, through a budget process, also pledged to eliminate old birth tax judgments.

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