New Parents Need To Get Smart on Coverage Options
A new baby touches every facet of a family’s life, including their finances. According to the National Center for Health Statistics, more babies are born in August than in any other month. The National Association of Insurance Commissioners (NAIC) suggests these steps to help new parents protect their growing family.
- Understand your coverage before the baby arrives. Review coverage options and find out exactly how your health care plan handles the costs of a new baby. Remember to consider prenatal vitamins, prenatal and neo-natal screenings and tests, emergency procedures, delivery (C-section and traditional) and pediatric care.
- Notify your insurer of your new baby. Make sure you are aware of the deadline and requirements to register your newborn with your health insurance company. Similarly, if you are adopting a child, consult your employer and health insurance provider for the requirements to obtain health insurance coverage in advance. For more information, check with your state insurance department at www.naic.org/state_web_map.htm.
- Evaluate your options. If both parents have employee benefit options, compare the health insurance policies to see which one best fits the needs of your family. Review the co-pay amounts and different options carefully to see exactly what is covered – and what isn’t – for both parents and children. Most companies will allow you to make enrollment changes when a baby is added to the family. Check with the benefits administrator at your office about your options.
- Make use of tax advantages. Ask if your employer offers a flexible spending account or health savings account (HSA). These plans allow you to set aside pre-tax dollars for medical expenses and child care.