Two Biggest Gaps In Every Maternity Insurance Plan

Even a “Cadillac” health insurance plan leaves holes for many couples with maternity on their mind. And not every plan pays top-of-the-line benefits. Many come with deductibles and co-payments that leave couples with unpaid medical bills.

Health insurance is designed to pay benefits directly to health care providers: doctors, hospitals, etc. But what about mom’s lost income during maternity leave? Or what if she needs to leave work early due to complications, or misses extra time after delivery due to postpartum disorders?

Many babies are born prematurely or with a serious illness. Sometimes one or both parents may need to take an unpaid leave from work to take care of baby at home. When you consider that many couples were finding it hard to make ends meet prior to pregnancy, imagine the financial distress associated with extended time with lost or diminished income coupled with extra medical expenses and child rearing costs. Supplemental insurance relieves this financial stress.

Insurance Plans May Have Gaps

A “Cadillac” plan may cover almost every direct medical expense associated with pregnancy and maternity. There may be very small co-pays, and little or no deductibles to meet for a couple. But these plans are very rare, because the premium costs are very high. More common are plans with bigger co-pays and deductibles. A $20 co-pay can add up quickly when mom needs to visit her doctor on a regular basis during her pregnancy. And a hospital deductible can put a serious dent in any growing family budget.

Health Insurance Has Limits

No matter what type of health insurance plan you have, rest assured that it is not designed to replace income. Short term disability replaces income. Unless you have a separate short term disability policy in addition to your primary health insurance, odds are you will be facing an unpaid maternity leave. This omission is compounded if mom experiences complications that require bed rest prior to delivery, or if maternity leave is extended due to postpartum disorders.

Unpaid Family Leave an Overlooked Exposure

Every couple considering pregnancy is full of hope. We all dream of having a healthy, happy, well adjusted child. No one likes thinking about things that may go wrong. Things go wrong for other people. But 12% of pregnancies are delivered prematurely, and these babies are often seriously ill and may need individualized care at home for extended periods of time. When this happens sometimes both mom and dad need to take time away from the job to take care of their baby at home.

Not only won’t your health insurance replace this income loss, neither will short term disability insurance. Disability insurance protects mom’s income during maternity leave and during any time she is unable to work due to a physical limitation. But once she has recovered physically the benefit payments stop, and the couple is forced to pay bills while missing one or more paychecks.

Supplemental Insurance Fills Key Holes

Supplemental insurance fills these two big holes in almost every maternity health insurance plan. Supplemental disability insurance creates maternity leave pay for mom’s normal labor and delivery, and replaces her income should she miss work prior to delivery, or extends her maternity leave. Hospital Indemnity Insurance also covers mom’s normal labor and delivery, and pays an additional benefit should an infant require specialized care in the hospital. Both policies fill key gaps in any maternity insurance plan, and when purchased at the right time may pay much more in benefits than you pay in premium.

By: Kevin Haney

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Find out more about how to leverage supplemental maternity insurance and other options that create a safe pregnancy. Kevin Haney is a licensed health insurance agent helping growing families generate maternity leave income, and protection just in case by using supplemental family health insurance benefits .