Milwaukee County Wipes Out $67 Million in Medical Debt for Young Families

MILWAUKEE, Wis. — Milwaukee County Executive David Crowley announced on Wednesday that his administration has fulfilled its promise to remove unfair birth cost recovery judgments, wiping out over $67 million in medical debt for young families.

Previously called “Birth Cost Recovery,” this policy required unmarried fathers to pay a portion of birth and delivery costs if the mother was on Medicaid. Married couples were exempt from this charge. Under Supervisor Caroline Gomez-Tom’s leadership, Milwaukee County has abolished this policy for unmarried parents.

ABC for Health explained that the birth tax is not the same as child support. The funds collected do not go directly to children or families but are used to reimburse Medicaid expenses. The birth tax is still in effect in several other Wisconsin counties.

ABC for Health is also monitoring Dane County, which has committed to eliminating old birth tax judgments through its budget process.

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