Considering Health Insurance Options for Pregnancy
Hello Kristin, I am considering having a baby in the next year or two and I'm wondering if I should switch health insurance before getting pregnant. It's hard to predict when exactly I might become pregnant, but I want to make sure I have a good health plan to cover the costs of doctor's appointments and labor and delivery. Since my partner and I are on separate health plans, I don't want to be stuck with big bills. No one really talks about how expensive it can be to have a baby, so I want to be prepared, at least when it comes to my health insurance. Sincerely, Budgeting for Baby
Dear Budgeting, Congratulations on this exciting time as you consider parenthood. As you are aware, becoming a parent can be quite expensive, and you may face significant bills even before the baby arrives. Should you switch health insurance to lower your medical costs? Possibly. It all depends on the details of the health insurance plans you and your partner have, and which one offers the most comprehensive benefits at the lowest cost. Let's analyze how you should evaluate your options.
First, you need to determine if you are able to switch to your partner's health plan, as not all employers allow this. Assuming it is possible, consider three scenarios: the cost of staying on your own plan, the cost of adding your partner to your health insurance, and the cost of joining your partner's plan.
Gather the plan details and get your calculator ready. Look at premiums, deductibles, coinsurance, and copayments for both plans. Premiums are your monthly payments, copays are fixed costs for covered services, deductibles are your out-of-pocket amount before insurance kicks in, and coinsurance is the percentage you pay after meeting your deductible. Compare the total costs for all three scenarios. Is one significantly cheaper than the others? If so, that might be the best option. But, consider other factors as well.
Having a child might require numerous doctor visits, specialists, and potentially even a hospital stay. It's wise to think about the possibility of needing extensive medical care, so review your plan details, especially the out-of-pocket maximum. While one option might save you more on copays and premiums, it may not make sense if the out-of-pocket maximum is much higher.
Don't forget about intangibles. Consider if you have long-standing relationships with certain healthcare providers. Are they in-network under your partner's plan? If not, you may have to pay more or switch providers. While you're being mindful of costs, it's okay to pay more for the peace of mind of keeping a provider you trust, especially during such a significant life event like becoming a parent.
Remember, becoming a parent is a monumental milestone, so the best financial decision might not always align with your personal preferences. And keep in mind that your health insurance will eventually cover your child as well, so factor that into your decision-making process. - Kristin
