Pregnancy will always make you and the whole family excited. However, pregnancy is not always about taking care of your fetus inside your womb. At the end of your pregnancy stage, you have to face a natural but nervous moment: childbirth. Besides mental and physical preparation, you also need proper financial planning to encounter this situation because anything can happen during childbirth. In this stage, you might think about maternity insurance.
Since I’m not an expert on this area, I’ve been collected some information about maternity insurance written by the experts. In this article, it will answer some important questions about maternity insurance, including techniques on how to get an inexpensive maternity insurance. The purpose is to help you save as much money as possible for your pregnancy. I hope it’s useful ^-^.
Maternity Insurance FAQ
By: Martin Unger and Christopher Harden
What is maternity insurance?
Maternity insurance is individual health insurance coverage that includes an additional maternity rider. As of January 2011, there are no stand-alone maternity insurance plans. Many companies do offer discount maternity programs. However, be very careful with these types of discount health programs as they are not insurance plans and usually promise more than they ever deliver.
There are essentially two types of individual health insurance that you can purchase that offer coverage for maternity: One type of health plan is known as an indemnity insurance plan. This form of health plan will allow you to pick your own medical doctor and hospital. Because of this freedom, an indemnity health plan can turn out to be one of the most expensive kinds of health insurance plans offered. Indemnity plans always have a schedule of benefits and generally will limit the exact amount of protection available for each type of health procedure covered. The other type of individual health insurance is called a managed health care plan (also know as an HMO, PPO, or POS). This sort of insurance plan has a network of medical doctors and hospitals which you should use for your health care. You can use this kind of insurance for doctors and hospitals outside of the insurance plan’s network, but the coverage will be limited and you will almost always have more out-of-pocket expense than if you stay within the network. Managed health insurance plans are typically more affordable and are the most popular type of individual health insurance available.
What does maternity insurance usually covers?
Standard individual maternity insurance riders that are added to individual health policies cover a portion of your doctor expenses, hospital fees, prescription medications, labor and delivery. This coverage is limited to the amounts defined in the maternity coverage rider. Make sure that you take time to completely understand the maternity rider offered by an insurance company before you make the decision to buy the insurance coverage. If you have insurance through your job, typically known as group insurance, then the coverage is usually more comprehensive.
Can I get maternity health insurance coverage if I am already expecting?
Almost all personal health insurance companies do not offer maternity insurance coverage, or any insurance coverage for that matter, to women who are expecting. In the case that you are currently pregnant, quite a few states do offer Medicaid or other state funded health coverage to low-income individuals and families. To see if your state has a low-income maternity program, visit your state’s department of insurance website.
If you are expecting and do not qualify for a state offered maternity program, it is advised to communicate with your local hospitals and negotiate a lower rate for their services. Most hospitals do give discounts if you pay cash or set up some form of payment program up front. The only other option is to obtain group insurance coverage through and employer or your spouse’s employer. Group health insurance plans almost always contain maternity coverage.
Exactly where can I find low-cost maternity insurance?
Low cost maternity insurance is available from a number of health insurance companies. It is suggested to check out an insurance comparison website and compare maternity insurance quotes from multiple insurance companies. There are a vast number of Internet websites accessible that offer insurance quote comparisons. I suggest making sure you use specific keywords in your search for the right website. For example, search ‘maternity health coverage’ on Google and begin at the top of the list of results.
Why Can’t I Find Maternity Insurance?
Unless you happen to live in one of the five guaranteed issue health insurance states (NY, NH, MA, VT and ME) or you currently have a group health insurance plan, finding maternity insurance coverage will be like looking for a needle in a haystack. Most major carriers have eliminated the option to add maternity coverage. Those that did not eliminate this feature, charge $200 to $300 a month extra for this add-on. Plus, there is a waiting period before you can become pregnant of up to 12 months.
To add insult to injury, the plans still have out of pocket deductibles and coinsurance. A few plans make you think they have a maternity option and charge you a nominal amount for it (around $100) but you later find that the benefit was extremely limited and you are generally getting back what you paid them or less. Hold on, I am not through with my ranting yet.
If you have had a prior c-section or a complication to pregnancy, they will not sell you the maternity rider at any price.
Does It Pay To Have Maternity Insurance Coverage?
Once you sit down and do the math, you start to wonder if maternity coverage is worth the bother. Let us say that you buy a plan and it costs you an additional $200 a month. They tell you that you have to wait 12 months before you can become pregnant. Let us further suppose that after waiting 12 months it takes you three more months to conceive. Afterward, assuming you are human, we have another 9 months of pregnancy. There is a total of 24 months that you paid $4,800 extra for in premiums. The plan might have deductibles and coinsurance of another $2,500 to $5,000. The cost for having a baby with health insurance is $7,300 to $9,800. If it takes longer to conceive, the bill goes up.
What most people do not know is that complications to pregnancy are covered by most health insurance plans even if you do not have maternity coverage. So, the hospital portion of a c-section is covered regardless. Look at all of the restrictions maternity insurance coverage puts upon you:
- You cannot become pregnant for up to a year and if you do you forfeit the maternity coverage.
- You still pay somewhere between $7,000 and $10,000 out of pocket with the coverage.
- You have to choose one of the few companies that offer this rider. This might mean that you are paying more for your other health insurance with less coverage.
Alternatives to Maternity Insurance
Instead of purchasing maternity insurance there are other plans available that can reduce your maternity expenses. Remember that complications to pregnancy are probably covered regardless. You can always contact the author for more information.
Advocacy Services – Over time, we have found that this service can negotiate extremely low rates for both pre-natal and delivery services, including lab fees. They do this day in and day out and have done this tens of thousands of times. This is the only alternative for someone who is already pregnant (other than group health insurance).
Limited Benefit Plans – These are guaranteed issue health insurance plans that cover maternity the same way they cover having your tonsils out. They provide a certain dollar amount for doctor visits and hospital costs. The operative word is limited. These plans are not available in all states. However, they can provide a great alternative to maternity insurance. There are a number of these plans at different price points.
Recently, we found a plan that will pay close to $7,000 for a two day hospital stay for maternity. The catch is, you must be employed when the plan begins. You do not have to remain employed, however, and your spouse can take the plan and put you on it as a dependent. It is very cost effective.
Group Health Insurance - Just about all group health insurance plans cover maternity. If you are self-employed it can be difficult to find a true group health insurance plan. We do have information for Group of One health insurance plans that are available in about 15 states. They cover maternity and, if you currently have health insurance, will cover you even if you are already pregnant.
Credit:
Martin Unger is a nationally known expert in health insurance. He started flquote.com, one of the first online health insurance agencies in the United States.
Christopher Harden is an insurance agent, website developer and prominent SEO professional and author. He has developed and maintains a multitude of websites pertaining to various lines of personal insurance products as well as many other niche online markets. He is currently the owner of Executive Broker Services, DoQuotes Insurance, InsuranceNewsGroup.com and Rare Productions Web Design and Marketing.
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