One of the most important things to consider pre-pregnancy, and consistently during your pregnancy, is the estimated cost of having a baby. The following is a list of baby-related expenses that you should plan into your budget for your pregnancy, delivery, and then after you welcome your sweet baby into the world!
1. Prenatal Care: This will be one of the first big costs associated with your baby. In 2007, the average cost of prenatal care, uncomplicated delivery, and 3 months postnatal care was about $10,652. If you can, thoroughly read over your insurance plan to determine what kind of coverage your plan offers for maternity care before you get pregnant. Some plans may not come with maternity coverage (like individual policies), so you may end up paying the entire cost of a pregnancy if you aren't aware of that in advance. If you don't have maternity coverage, you may be able to add a maternity rider to your coverage before you get pregnant (some require you be covered under that maternity coverage for a certain amount of time pre-pregnancy in order for coverage to apply; usually 6-12 months), but if you are already pregnant, it counts as a "preexisting condition" in the eyes of most insurance companies and you can be denied coverage. If you are already pregnant, don't have insurance, and are at or below 133% of the Federal Poverty Level, you can qualify for Medicaid. If you are pregnant, uninsured, and don't qualify for Medicaid, call around to different maternity care providers in the area and see if any of them offer special discounts to women that have to pay out of pocket.
If you already have maternity coverage under your health insurance plan, check to see if there is a separate maternity deductible on top of your regular yearly deductible. If you have a relatively cheap health plan (low monthly rates), you're more likely to have really high deductibles (some maternity deductibles I have researched are upwards of $7,500; meaning you would pay that much money before your coverage would even kick in, potentially paying almost the entire cost of your pregnancy and delivery before your benefits apply). After you've determined what your deductible is, check to see how much your insurance covers vs. how much you pay for coinsurance/copays. Most plans will cover 70-80% of the costs for covered providers, leaving you to pay the remaining 20-30%. Make sure that you choose a healthcare provider and delivery location that is covered by your insurance company (go on to your insurance company's website and search their list of covered providers before choosing your doctor). If you choose a provider that is not within their approved network, you could end up paying a lot higher percentage of the costs (50%+). 20-30% may not sound like a lot that you are paying, but if your doctor charges $4,000 for your prenatal care, cost of delivery, and 6 week follow-up appointment, you are still paying $800 (20%)-$1,200 (30%) just for your doctor's costs. Hospital costs will be billed separately from your doctor's costs.
2. Cost of Delivery: If you choose to give birth in a hospital, the cost of your delivery can range from $6,000 for an uncomplicated vaginal delivery, to upwards of $25,000 for a c-section. Again, if you don't have insurance, this can be an incredible financial burden. Talk to your local hospital about payment options several months before you deliver. Some may even let you start paying in advance rather than paying it all after the birth. Also, discuss if the hospital offers any discounts for uninsured women. If you are insured, again, thoroughly check your plan so you know in advance what the plan covers vs. what you will pay. Remember, you will be billed separately for your baby's costs (between $1,500-$4,000), so remember to add baby to your insurance plan within the time limit in order for his/her costs to be covered by your insurance as a dependent (you will have to pay the additional premiums when you add a dependent to your plan before coverage will kick in). In addition to separate costs for your baby, if you have pain medication delivered by an anesthesiologist, you will be billed for that separately as well (around $2,500 without insurance).
3. Baby Essentials: This area will differ for every individual family, so I found a very cool little tool called the Baby Cost Calculator. All you have to do is customize the different areas for what you will and will not be using after your baby is born (think childcare, diapers, feeding, college savings, healthcare, and one-time costs like car seats and cribs). After you've put in all that information, you'll get an estimate of how much your baby's first year will cost you. I put in my information based on the costs of the items that I have selected, savings plan, health care costs, etc., and it totaled about $3,992. Keep in mind that this is just an estimate, however. There are several ways that you can reduce the cost of baby essentials. If you need to do daycare, see if there is someone in your area that you can "baby swap" with, meaning you babysit for each other to "pay" for babysitting services. When it comes to baby supplies, there are certain items that you should never buy secondhand due to use and safety standards (like car seats and cribs). Otherwise, see if you can get hand-me-downs from mommy friends and relatives, look on craigslist (shop safely when buying directly from unknown sellers), and look at stores that sell gently used kids clothing and toys (like the D.I. or Kid to Kid). Don't go too crazy with all the bells and whistles that companies tell you that you NEED when having a baby. For example, when building your baby registry, put only real essentials like diapers, bottles, car seat, crib, etc., instead of filling it with toys and adorable outfits that your child will grow out of in a matter of months.
So, with all of the costs I've mentioned above, we can approximate the cost of pregnancy, delivery, and baby's first year. For prenatal care, an uncomplicated and non-medicated vaginal delivery covered by insurance with a 20% coinsurance, low baby hospital costs, and a modest baby's first year, mom and dad could end up paying around $7,500. Worst case scenario, uninsured prenatal care and c-section delivery, high baby care costs (like having a baby in the NICU) and a modest baby's first year, mom and dad could be stuck paying around $40,000+.
The best thing you can do is to sit down with your partner and get a good idea of what your finances look like well before you get pregnant. If you haven't already had this important discussion and you are already pregnant, it's even more important to talk about money and budgeting together. Having a realistic idea of what your baby will cost you in advance will save you from a lot of unpleasant financial surprises and hopefully prepare you to pay the bills associated with your pregnancy, birth, and baby without getting deep into debt trouble.
Disclaimer: The "Pregnancy, Babies, and Birth" blog series is meant as a source of general information only. Its intended use is to encourage women to further consider and discuss reproductive and birthing decisions themselves, with their partners, and with their medical care providers. Information included in this series is not intended to be professional medical advice or a substitution for a relationship with a licensed physician or practitioner. Any serious questions or concerns about reproductive, prenatal, and/or perinatal health should be directed to your primary care physician or other licensed specialist. Women's Services and Resources does not promote any particular brand, medical provider, birthing location, or any other specific birthing decisions. We strongly encourage women to become as educated about their choices as possible so they are empowered to make educated decisions for themselves and their babies.
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