Maternity Insurance

Maternity Insurance Coverage

While it would be nice if all employers offered insurance that included maternity coverage as part of the employee benefits package that is not always the case. If you are thinking of getting pregnant, you may have to purchase health insurance on your own. The best time to get insurance to cover the cost of your pregnancy is before you get pregnant. Many policies include a waiting period for preexisting conditions, and pregnancy most definitely qualifies as a preexisting condition. This means if you are pregnant when you purchase insurance, you may have to pay insurance premiums and the cost of prenatal visits out of your income. Depending on the length of the waiting period and the care you have already received for the pregnancy, you could conceivably have to pay for the birth of your child as well.

Insurance Coverage Alternative

Medicaid

The cost of maternity insurance is not within the budget of everyone. In cases of low income households, applying of Medicaid may be the answer to receiving the medical care during your pregnancy that is necessary to ensure you give birth to a healthy baby, and in the event your baby is born with health problems, he will get the care he needs without you and your family going bankrupt. To find out if you qualify for Medicaid, visit Centers of Medicare and Medicaid Services.

Maternity Insurance Riders

If your existing health insurance policy does not cover maternity expenses, you may be able to find, through your existing insurance company or another company, a maternity insurance rider to pay the costs of your pregnancy. Typically, though, this type of rider also has a waiting period during which you would need to pay your premiums but would not be covered. This could be for as long as a year, so if you are already pregnant this is not a viable option for you.

Savings

By planning your pregnancy well ahead of time, you can save an invest the funds necessary to pay your pregnancy costs out of your own pocket; sometimes for less than what you would pay for a maternity insurance rider.

Payment Arrangements

While your doctor may require payment for prenatal visits at the time of the visit, hospitals will often work with you to set up a payment plan, or prepayment plan for the cost of a normal delivery. If you have no insurance and there are complications or your baby ends up in Neonatal Intensive Care Unit (NICU), you could be looking at long-term debt, but do not be afraid to negotiate with the hospital for better terms, once everyone is out of the hospital.

Pre-Tax Dollars

If you are pregnant, don’t forget to take advantage of any Cafeteria Plan your employer may offer. What this means is you can have your insurance premiums and medical costs deducted from your check before the taxes are calculated. This can go a long way toward saving you from paying Uncle Sam any more at year end than you absolutely have to.

In Conclusion

Having a baby is an expensive undertaking and should only be entered into after careful consideration—financial consequences are only one facet of that consideration. Take the time to review your current financial situation, your health insurance coverage, and discuss your options with your employer and an insurance agent or financial consultant who can answer question that relate to your specific situation.