 The cost of maternity care in Australia is high due to the large number of private patients who receive care in private hospitals. This study examined the cost of maternity care to different funders, including government funders such as Medicare and private health insurance providers. It found that private hospital births cost government funders significantly less than public hospital births, however government funders still paid for approximately 40% of the cost of private hospital births. Additionally, it was estimated that if caesarean sections were reduced, government funders would save 4 million and private health insurance providers would save 6 million. This article was authored by Emily Callender, Antonia Shand, David Ellwood, and others.