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Understanding Your Insurance When You Have a Baby
Author: Stef Daniel
Often, new parents never think about the financial implications of having a child – especially as it pertains to medical bills. The truth is that in the first month of your child’s life, they will be seeing the doctor to regulate growth and to make sure that they are healthy. If your newborn gets sick during the first month of life, you will be in the doctor’s office even more. It is important to understand your insurance prior to delivery and to make sure you know how to add your child to your health coverage so there are no problems with overlapping or non-coverage.
Every insurance company is different. Don’t just assume that because you are being covered by an insurance company that they automatically add your child to your plan. Your very first step should be to contact your insurance company to gain a complete understanding of the steps you will have to take. Most often, you will be required to call them within a few days of delivery to add your baby to your plan. Also, check with your human resource administrator to see if higher monthly fees for your family will apply. If so, you will have to alter your plan and make sure your employer takes the premium out before you can acquire coverage for your baby. In most instances, there is a grace period of 30 days to add your baby to the coverage.
Hospitals automatically apply for a social security number for your child. You will know your child’s social security number before you leave the hospital. It can take up to three months for the actual card to be issued. Insurance companies will simply require the number, your child’s date of birth, and their full name in order to be added to insurance. If your insurance company has a small grace period for adding your child, then have someone else in your family be responsible for that.
If you do not have insurance for you or your child and depend on government health care, the same rules will no doubt apply. By the same token, there are millions of babies born in the United States each year to mothers who have no insurance at all. It is definitely in your best interest to contact your local government to find out what options they have for you. You will probably find that there are many programs you may qualify for which entitle you to reduced fees for vaccinations and other well visits or procedures that are normally incurred in the first months of life.
Insurance is tricky and it can be expensive. The average cost of medical care during the first month of life, including procedures done in the hospital can be well over $3,000. It is definitely in your best interest to find some assistance and ensure that your newborn is covered. Medical bills can force many families into bankruptcy if they are not prepared. Contact local officials, check out the CDC website and the United States Department of Family, Health and Child services, and see what options are available. It is much better to be prepared than to be facing collections with medical bills.
Insurance is one of those things that can be handled BEFORE you have your baby. Use your time at home planning for baby wisely, and find out all you need to know about your individual coverage and family plans. Also, get a full explanation of benefits so you know what your insurance company will and will not provide. Many companies do not pay for vaccinations, which can be $300 to $500 at a time. If you know ahead of time that your insurance doesn’t pay for these, there are many programs that offer reduced vaccination fees.
