So, you're thinking about having a baby. Congratulations! First thought: I better get health insurance. OK... let's stop there. Now, I don't want to offend anyone, but honestly... it's called health insurance for a reason. You don't buy insurance for things you expect to happen. It doesn't work that way. OK... well, you still want to check into it, right? Let's talk about it:
You've got some plans in Texas that will let you add a maternity rider. But, trust me... the insurance company will make money off of it... they'll charge you more for the additional rider, and then limit your benefits. Don't think for a second the insurance company is going to pay for your full delivery and maternity expenses on an individual health insurance plan.
Alright, are you feeling down? Well, don't. Plan for your own baby. You can have a baby, and the health insurance company doesn't have to pay for it... you can. Already pregnant? Then, if you don't have health insurance, it will be difficult. I'm not aware of a plan in Texas that covers parents who are expecting a child. You have to admit.. that's a high risk to take on, and again, insurance isn't for things you expect... it's supposed to be for the unexpected events. Don't be mad at me. That's just how it works.
OK... so you're not pregnant yet? Then, you have some other options. You know you can save for your own maternity costs, and get some tax advantages. Here's what you can do: You can get a plan that is called an HSA plan. All the major companies sell them. Some have better rates than others, but they all do about the same thing. You have a high deductible of which you have several choices. What the plan qualifies you to do is to open an HSA account. And an HSA account is alot like a retirement account. You can deduct money you deposit, interest grows tax free, and when you withdraw money for medical expenses it is withdrawn tax free. OK, so your insurance company doesn't cover maternity services. Well, at least you can get tax savings from the money you spend on your delivery. But, what does you insurance company cover? Most cover complications of pregnancy. So, if there were any complications your insurance company would process those claims, but anything for routine maternity and delivery would be denied as not a covered service. How much is the average maternity costs for a pregnancy? According to the Kaiser Family Foundation it's around $7,000 for vaginal delivery and $10,000 for C-Section.
The best thing about the HSA plan is that you can use the funds from your account to cover things that your health insurance company does not cover. You can also use them to meet your deductible. But, this is important to you because even though your health insurance company does not cover the delivery, you can pay for it with money from your tax advantaged HSA account.
So, I say have that baby. Get up at 3 AM. Just raise them right!
This information was provided by Mark Glen-Walker, www.MyHealthInsuranceGuy.com. Mark Glen-Walker is a local, independent agent in Texas who specializes in health insurance.
