Are you planning to start a family soon? Or to expand your family with a new baby? Either way, it’s important to understand the financial considerations of having a baby.
Our Addition Financial members who want to have families sometimes come to us for advice. One of the questions we hear a lot is:
“What’s the average cost of having a baby?”
That’s an essential question to ask. In this post, we’ll focus on the costs associated with pregnancy and preparing for your first child. We’ll also touch on some of the long-term costs since many of them can be planned in advance.
The Average Cost of Having a Baby
The average cost of having a baby varies greatly from state to state. The range for an uncomplicated vaginal delivery is between $5,000 and $11,000. If you require a Cesarean section, the range increases to between $7,500 and $14,500.
That cost is not just for the delivery itself. It includes everything that happens during pregnancy, including:
- Regular check-ups throughout your pregnancy
- Pregnancy-related tests
- Prenatal care
- Ultrasounds
- Obstetrician’s fee
- Anesthesiologist’s fee
- Hospital care fee
- One follow-up visit post-delivery
- Prescription associated with pregnancy and recovery from childbirth
In Florida, the costs of all deliveries (vaginal and C-section) ranges from $8,000 to $13,000 depending on where you’re located. As a rule, costs are higher in the city then they are in rural areas. Overall, Florida is the eighth most expensive state to have a baby.
It’s worth noting that three Florida cities – Tampa, Orlando and Miami – are in the top 20 priciest cities in the United States. That’s something to keep in mind as you choose a hospital and doctor.
How Does Insurance Affect the Cost of Having a Baby?
One of the biggest factors in how much you’ll pay to have a baby is what kind of insurance you have. It can be frustrating to try to figure out your costs when there’s so much variation in what’s covered – and in what providers charge.
If you have insurance, there are many factors that can affect your expenses. Here’s what to look at:
- Your doctor visit copay. Keep in mind that some plans charge more for a specialist visit – and they may consider an obstetrician a specialist.
- Your prescription drug copay. Watch out for differences between generic and name brand drugs.
- Your per-day hospital deductible. Many plans have a high deductible for inpatient stays and that includes delivering a baby.
- Your out-of-pocket maximum.
If you do plan to have a baby, you should calculate how much you’ve paid toward your out-of-pocket maximum. There’s a good chance that you’ll end up paying whatever amount is left until you meet the maximum. Knowing that ahead of time can help you save the money you need to meet the expenses associated with pregnancy.
What If You Don’t Have Insurance?
If you don’t have insurance, then you’ll need to pay for your pregnancy-related expenses out of your own pocket.
The bad news is that you can expect the birth to cost between $3,000 and $5,000 more than it would with insurance.
The good news is that the Affordable Care Act, which was signed into law in 2010, made it illegal for insurance companies to count pregnancy as a pre-existing condition. That means you can’t be denied coverage because you’re pregnant, nor can an insurance company raise your premiums because of a pregnancy.
Tips for Saving Money While Having a Baby
While many of the costs associated with having a baby aren’t negotiable, there are some choices you can make that can help you reduce or defray how much it costs to have a baby.
Here are some pointers:
- Review your insurance plan carefully and make sure you understand the costs and what your options are
- Choose an in-network provider
- Choose a hospital that’s in your network, too
- If you’re young and healthy, consider using a midwife or a nurse-midwife instead of an obstetrician for the delivery – if your insurance plan will allow it
- If you’re planning in advance, consider contributing to a health savings account or HSA. The money you contribute is tax-free and can roll over from year to year, unlike a flexible spending account.
With a little planning and common sense, you can minimize your out-of-pocket expenses and make your pregnancy and delivery as stress-free as possible. Making a budget is one of the best ways to alleviate stress during pregnancy.
The cost of having a baby may be high, but the information we’ve provided here will help you prepare to meet them, so you can relax and enjoy your beautiful baby!
Need an account to help you save for the addition to your family? Click here to learn how Addition Financial’s savings accounts can help!
Posted on Aug 28, 2019
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