Online health insurance quotes help growing families to compare options quickly and choose the alternative that makes having a baby most affordable.
Focusing on premiums costs alone is a big mistake for parents with an expensive labor and delivery and possible NICU confinement looming on the horizon.
Every alternative leaves parents with leftover expenses. Forecast all of your possible costs before making a choice.
Best Health Insurance for Starting a Family
The best health insurance choice for starting a family is unique to every couple. Take the time to answer five key questions affecting the cost of having a baby. Do this before requesting an online quote and making a poor choice.
- Does the plan cover infertility and/or IVF treatments? Many couples have difficulty conceiving and must resort to expensive artificial reproductive technologies.
- How does the plan pay for pregnancy and childbirth? Maternity care is an essential health benefit but 100% payout is not automatic.
- Should husband and wife carry separate policies? Since men cannot have babies, buying cheaper coverage for dad can be more affordable overall.
- Is health insurance tax deductible? Yes, the cost of coverage does yield tax savings that vary for each situation.
- Pretax payroll deductions for group coverage through work
- First dollar savings for the self-employed taking deductions on form 1040
- Deductions above an AGI threshold for W2 workers using Schedule A
- 2018: 7.5%
- 2019: 10%
- What happens during FMLA? Parents need to leave room in their budget to continue premium payments while on unpaid leave – if eligible under the law.
Individual versus Family Health Insurance
The best health insurance choice for a growing family could be a husband/wife and children plan, individual coverage, or a combination of both. For example, separate policies for husband and wife could work out better in some situations. Compare both alternatives quickly via your online quote.
Private health insurance premiums typically increase with family size. For example, the premiums for a family of 5 are higher than one of 4, which are higher than one with 3 people.
Likewise, the premiums for individual health insurance are always lower because they cover only one person. This logic leads to an opportunity to save money with separate policies.
- Husband selects parent and children coverage with lower actuarial value: larger deductibles and coinsurance and cheaper premiums.
- Wife chooses individual coverage with higher actuarial value: smaller deductibles and coinsurance and costlier premiums.
Your newborn could be covered under either plan (husband or wife). Put healthy infants on dad’s cheaper policy, and sick babies on mom’s coverage with better benefits.
The individual versus family deductible is rarely an important consideration for parents having children. A normal childbirth experience generates enough expensive claims to wipe out all but the largest deductibles.
- Individual deductible: claim payments begin once a specific covered person has expenses exceeding the stated threshold
- Family deductible: claim payments begin once a second person files a claim and the total expenses of all members exceed the stated threshold
The individual versus family out-of-pocket maximum is perhaps the most important element for parents having children. This question comes into play with babies born prematurely or with a serious illness. Now, two people on the policy file expensive claims instead of just one.
- Individual out-of-pocket maximum describes the limit the family must pay via deductible, coinsurance, and copayments for any one person
- Family out-of-pocket maximum determines the tipping point when the company begins making 100% reimbursement on covered expenses for all people on the policy.