Obama administration makes $40 million available to reduce preterm births

The Obama administration announced Wednesday that it's making more than $40 million available to prevent preterm births.

The grants aim to support the testing of enhanced prenatal care at birth centers and maternity care homes and reduce early elective deliveries. More than half a million babies are born prematurely every year in the United States, according to the Department of Health and Human Services, resulting in children who often require extra medical attention and special education.

"Preterm births are a growing public health problem that has significant consequences for families well into a child's life," HHS Secretary Kathleen Sebelius said in a statement.  "The Strong Start initiative will help give expectant mothers the care they need for a healthy delivery and a healthy baby."

The grants will be awarded through the new Center for Medicare and Medicaid Innovation, which was created by the healthcare reform law to test new care delivery models to improve quality and lower costs. Medicaid pays for almost half of all births, according to HHS, and a 10 percent reduction in deliveries occurring prior to 39 weeks would save the program more than $75 million a year.