Parents - what did you spend on hospital bills?

hoffse · November 2013

Hi all,

As I've mentioned in other posts, H and I are saving for a house, hoping to buy late next summer or early fall. I'm 27 and will probably be 28 by the time we buy and move. I suspect we will be TTC fairly soon after that because of my age - we think we want more than one child, and we'd like several years between them (I would LOVE 4 years between them... so that we aren't overlapping college expenses).

Anyway, I've been trying to get a sense of what this would probably cost us so that we can account for it when we're considering how much house to buy. Generally, we would prefer to buy a less expensive house than a more expensive house, but location and school district is a major factor for us. The locations we really love tend to add $50k-$100k in price, and we're trying to decide if that extra cost would make things unreasonably tight with a baby or would require us to wait longer than we want to start TTC while we save money for it. We would have no issue affording a house in those locations without the added expense of children - and normally I'd be willing to wait until our student loans are paid off before taking on another major financial commitment like having a child- but I will probably be 35 when our loans are done, and that just feels too late to start.

I know that the hospital expenses vary a lot based on your insurance. I have pretty good insurance, and I've called but they are pretty vague.

I've gotten a decent estimate on the rest of the expenses (baby gear, maternity stuff, birthing classes, etc). I've also researched day cares, insurance costs, and basic baby-related purchases to get a sense of what our ongoing monthly costs will be with a baby. But I keep reading that the hospital bill is the #1 big expense with giving birth, and I can't find anything that gives us a ballpark for what that will cost. So for those who have already done this: what did you pay out of pocket (not counting your insurance, but actually out of pocket)? What do you think is a safe amount to budget for this portion of baby expenses?

TIA!

brij2006 · November 2013

You will want to take a look at your insurance plan. Everyone's insurance covers maternity for a different amount. For us, we have a $1,000 deductible with $3,500 maximum out of pocket expense. So we planned for $4,500. Then we also have a $40 co-pay for each Dr visit. So I budgeted another $500 in co-pays on top of the $4,500. So we put aside $5,000 for the medical expenses.

hoffse · November 2013

Thanks, that's about what I was thinking. I suppose I should call them back and be a bit more insistent. They always ask if I'm pregnant, I say no, and then they get vague.

Out of curiosity, does that $4500 cover baby as well?

smerka · November 2013

It will 100% depend on your insurance. I think my bills from the hospital were between $10,000 and $20,000. I had a planned csection and an induction. The OB charged $5,500 both times and that's the only bill I got from them. There's also the anesthesiologist if you have an epidural. The pediatrician will visit the baby in the hospital too. If you have a boy, circumcision if you choose that route. And don't forget about he misc. Blood tests, 3-hour glucose test, first tri screenings if you choose those, ultrasounds, etc. during your pregnancy. I was considered high risk because of my age so I had more testing done. I think in the end, I paid about 10% of each bill. I think I did get a bill from the hospital for me and the baby especially when my first spent a night in the NICU. Another thing to consider is if you space your kids out with four years in between, you will probably have to buy new equipment for the second since things like car seats tend to have expiration dates.

vlagrl29 · November 2013

Totally depends on your insurance coverage. We saved $3,500 plus extra for baby supplies and decorating baby room. The hospital bill was the big bill for us. I was on COBRA and had $3,500 max oop. No one told us the baby would have her own bills so that was a surprise for us when we got that bill in the mail. After we added her to DH's insurance we got a $3500 bill in the mail for her. We were so annoyed because we hadn't saved for it, so we put it on a medical bill and paid it off throughout the year. The best thing to do is to call your OB's office and talk to their billing dept as to how much you will owe thru the 9 months. That will take care of the doctor side. Then call the hospital to get their estimate for vaginal AND c/section. Then call your insurance company, if you have to say you are pregnant because they will then give you hard numbers of what they cover. That's what we did when I got pregnant. It's not cheap that's for sure, but it's worth it. We also want to space our kids out 4 years apart....I would actually like 5 years. But we only want 2 kids. I don't think we can afford more than that.

Ducktale · November 2013

I've tried to figure out these estimates and I've given up. Some people just pay their deductible. Some, like PP have crazy high unexpected bills. Seems like the safest thing (and what we're planning to do) is make sure you can afford the max family OOP, because even if your insurance can tell you what you could owe, they can't predict things like an emergency csection, NICU stay, etc. Another semi common thing I've heard (and I'm really not sure there's anything you could do about it) is for an out of network Doctor to be in the operating room for an emergency csection, and therefore you pay your out of network charges.

Sisugal · November 2013

Keep in mind that the ACA will change a good deal of things with health care. Employer sponsored insurance (currently delayed for implementation) will see new standards that must be met later in 2014.

You could also post pone the home purchase for another year and save more for the downpayment, thus lowering the amount of your mortgage - allowing more for child related expenses in your budget.

Sisugal · November 2013

Keep in mind that the ACA will change a good deal of things with health care. Employer sponsored insurance (currently delayed for implementation) will see new standards that must be met later in 2014.

You could also post pone the home purchase for another year and save more for the downpayment, thus lowering the amount of your mortgage - allowing more for child related expenses in your budget.

vlagrl29 · November 2013

Just hope for the best but prepare for the worst. The hearing test which every newborn has was given to my DD by an out of network doc so it wasn't covered. we called the provider and they provided us with a discount if we paid for it all then which we did. that's my little trick to unexpected, non covered med bills.

jjbmstinco · November 2013

Can you look online at all? I have Blue Cross Blue Shield. Once I created an account, it had everything laid out for me. Everything was listed-vaginal birth, c-section, tests, ect.

Wulfgar · November 2013

MW said that for our LO, it was roughly $3500 that is with the insurance company picking up 90%. We are in the Akron area. I would say try to save up for any additional expenses and figure a minimum of $5000 to be save.

For housing, MW bought our house a few exits up from where she worked. We have decided that we would rather put our child(ren) into Catholic School versus public school at least until they are ready for High School. If we bought into the better school districts we are talking about 100 to 150k more then what we got our house for. We are also better situated where we live to my work so I have a shorter commute.

brij2006 · November 2013

I was told that for the first 48hrs after a vaginal delivery and 96hrs after c-section. The baby would be under my deductible. So pretty much as long as there are no issues and we don't have to stay in the hospital for longer than the norm, then it's just my individual deductible and max OOP expense. If we have to stay longer or there are any complications that causes baby to stay longer, then it automatically bumps to my family deductible of $2k and OOP max of $5k. So $7 total. However, I'm on a plan by myself, and my H is on a plan on his own. If you're on a joint plan, then the family deductible and OOP will apply.

vlagrl29 · November 2013

I forgot to mention the things that might happen during pregnancy that may require more doctor visits for you afterwards or even during the pregnancy. I got SPD (symphis pubis dysfunction?) halfway thru my pregnancy and it was still there after I delivered. Basically my pubic bone spread open and never closed shut. It caused me a lot of discomfort and pain on a daily basis. I had to see the chiro for 6 months after the baby was born and I was all better. I also had to have physical therapy when I was pregnant due to sciatic pain and sacrum pain. Based on our experience I would tell you to plan on stashing $10k away.

hoffse · November 2013

Thanks for all of this advice - good lord I had better go read a book on this or something because so much of this is new to me... I haven't even heard of some of these tests, etc. that apparently happen. Sigh.

I have blue cross blue shield as well and read the entire 48 page thing, and it was also vague. It was the "summary of benefits for [my employer]" so perhaps that's why they glossed over some stuff. But for the life of me I can't find the actual contract on the website. I might just call and fib and tell them I'm pregnant to get an estimate. Feels strange, but that's probably the only way to get even a rough ballpark.

Re: housing - it's so tough because we've really fallen in love with this neighborhood that is like... across the street from my office. It's about 10 minutes from where H's office will be. I've actually sneaked out during lunch before and timed it. It's literally 7 minutes from my butt being in my office chair to being at the front door of these houses. And that includes having to turn left at a couple of lights. School district is decent (not spectacular), but the best private catholic school in the area is smack in the middle of the neighborhood, and the really outstanding public school districts are 2-3x this neighborhood in property taxes and would end up costing us about the same as private anyway. H grew up going to catholic school, so it's something he really wants to do. I'm on board - it's not nearly as expensive as I thought it would be. And again - I would be 7 minutes from my child's school from pre-K through 8th grade. The catholic high school is 10 minutes away. It's all so perfect.

And then you have the houses - so cute, sidewalks everywhere, a neighborhood ice cream shop, BBQ place, and pizza parlor. Almost entirely made up of young families and everybody knows each other. Every time I drive through that area I literally have to brake for moms taking their kids to get ice cream in red wagons. It's completely adorable, and we're 100% in love. It's just that the really amazing things about this neighborhood is how family friendly it is - so there's really no point in us living there if we don't have a family there, KWIM? That one's the $50K+ range that I mentioned in my OP. The awesome school districts are the $100K+ range plus higher property taxes. Those are also close - still 10 min for H and also about 10 min for me. The houses are also bigger and you have acreage instead of tiny yards. But the cost...

I'm not as concerned about the monthly expenses - the mortgages on these houses won't be that much. It's really just the down payment coupled with paying for a baby soon after... because there will be other things besides the down payment we need for the house (like a couch, for instance. And a lawn mower. Etc.). I just know that the "start up" costs for a baby are also a lot, and it looks like it will time out soon after buying the house simply because of my age. And I really don't want to take out a loan to the hospital. I also don't want to wait until I'm approaching 30 before TTC either.

Decisions, decisions.

Re: spacing babies apart - I know we'd probably need to buy some new gear for #2, but frankly I'd rather spend a couple grand replacing baby gear than paying for two college tuitions at the same time. Besides, by the time we're ready for #2 I imagine one (or both) of us will have partnered. That's what most of the women I know who are in my profession do - they wait until they partner before having kids. But that starts you around age 34 or 35 with your first child. I'm happy to be having second around then. I just don't want to be starting, KWIM?

Mom987 · November 2013

I'd say definitely your medical deductible and coinsurance, which could max out your out of pocket maximum. We didn't get billed for anything other than insurance deductibles/coinsurance. Keep in mind your baby may have their own deductible, depending on your plan.

hoffse · November 2013

H does think I'm overestimating the cost of other things by a pretty significant amount. I think I mentioned before that I basically looked at one of those baby registry lists and just searched for the price of things on Amazon. He thinks there is too much stuff on those lists (probably correct) and that I've overestimated what we will actually pay for the stuff we do need. His point is that I refused to buy a wedding dress until I found one that was 80% off... so there's no possible way I would actually pay full price for a stroller.

I know he's right, yet I'm the planner and he's the spontaneous one. I have a hard time paying more than is necessary for ANYTHING, including a house. And the fact of the matter is, we could live further out and pay 50-100K less on average, and if we did that the baby fund would basically be in place the day we moved in. But the perks I described might be worth the price premium, and perhaps I should trust myself to get bargains on baby stuff if we get pregnant before every last penny is saved. I really do believe you have to live life at some point - but I'm a worrier!

I do think I'm going to call and tell them I'm pregnant though just to try to get an estimate - it bothers me to no end that I can't figure this out on my own.

vlagrl29 · November 2013

hoffse said:

H does think I'm overestimating the cost of other things by a pretty significant amount. I think I mentioned before that I basically looked at one of those baby registry lists and just searched for the price of things on Amazon. He thinks there is too much stuff on those lists (probably correct) and that I've overestimated what we will actually pay for the stuff we do need. His point is that I refused to buy a wedding dress until I found one that was 80% off... so there's no possible way I would actually pay full price for a stroller.

I know he's right, yet I'm the planner and he's the spontaneous one. I have a hard time paying more than is necessary for ANYTHING, including a house. And the fact of the matter is, we could live further out and pay 50-100K less on average, and if we did that the baby fund would basically be in place the day we moved in. But the perks I described might be worth the price premium, and perhaps I should trust myself to get bargains on baby stuff if we get pregnant before every last penny is saved. I really do believe you have to live life at some point - but I'm a worrier!

I do think I'm going to call and tell them I'm pregnant though just to try to get an estimate - it bothers me to no end that I can't figure this out on my own.

I hate insurance companies, but unfortunately that is probably what you are doing to have to do. Our family bought all the high price ticket items for us: high chair, baby furniture, stroller, car seat, swing, etc. We literally spent maybe $300 of our own money on baby supplies before she came. Good thing is you will have 9 months to save as well. We didn't start saving until I was pregnant and were still able to come up with all the money except for our surprise $3500 hospital bill.

I think 4 years apart is perfect on kids. I had such a horrible pregnancy that I'm just now starting to get the baby fever 2.5 years later. LOL! It's also been nice having my body back. It took about a year to loose all the weight and I want to enjoy it for a bit more before having to put it all back on again. I still got a little pooch, but I've come to accept it. The hernia surgery I'm going to have in Jan. of 14 is because of pregnancy too. I was one of the unlucky ones that had all the symptoms and then some.

vlagrl29 · November 2013

maybe you can space the house purchase and baby making purchase enough time apart to make it more feasible? Another reason we are waiting for #2 is because DH is about to either purchase an old building to rehab into a photography/event space or buy a Lot and build it from new construction. We are the type of people that do well with only 1 major life change at a time.

MrsD06 · November 2013

Our total out of picket expense was $250. That included my labor for 24+ hours, the c-section I ultimately had, and my four day hospital stay with my first. My second birthing experience was c-section right from the start and was also $250. That cost was for me, the babies were included under me and I wasn't charged anything for them. I also do not have co pays for any well baby visits and sick visits are only $10. We have great insurance and pay only $280 a month for our whole family with no up front deductible.

antt0008 · November 2013

"brij2006:

I was told that for the first 48hrs after a vaginal delivery and 96hrs after c-section. The baby would be under my deductible. So pretty much as long as there are no issues and we don't have to stay in the hospital for longer than the norm, then it's just my individual deductible and max OOP expense. If we have to stay longer or there are any complications that causes baby to stay longer, then it automatically bumps to my family deductible of $2k and OOP max of $5k. So $7 total. However, I'm on a plan by myself, and my H is on a plan on his own. If you're on a joint plan, then the family deductible and OOP will apply. "

I'd just be careful with this information and maybe get additional clarification just to be sure. We just had a girl in September, a non-complicated vaginal delivery, and just got the EOB and all of the bills. I was also told that this would be the case as well, that the LO would be under my deductible, etc...however, they still billed the "nursery stay" and all of her tests under herself to the tune of $3700 - we were only responsible for 10% up to her own OOP max (or family), but not all of her care was under my OOP as I had thought I had been told. Just as an FYI, all of my maternity care was covered at 100% base on my plan viewed this as preventive care- but we will have end up paying ~$2600 OOP for the delivery for both of us. Hope that helps.

maple2 · November 2013

As others have said, it will totally depend on your insurance, but I wanted to throw out another non-horror story so you don't get the impression that every single birth under every single plan is outrageously expensive. I had a difficult pregnancy the first time with multiple ultra sounds required throughout and an emergency C-section at the end. I paid <$500 including all pre-natal care for me and first year care for DD. The 2nd pregnancy was with different insurance. It was less complicated but again ended in a c-section. I paid <$300 for that one including all pre-natal care for me and first year care for DD.

hoffse · November 2013

Thanks, everybody - I'm going to call them this afternoon I think and see if I can get the lowdown on how this will work.

We can space the house and baby out a bit - we do want a chance to play house and live in a toy-free environment for a little bit before we start collecting exersaucers and jumperoos.

We're in a strange situation on this because we have such a wide price range compared to most who are looking for their first house, that's it's hard to settle on firm ceiling. Some days I'm feeling really cheap, and I'd rather drive in a half hour to get a big yard, plenty of space, while spending very little money (relatively speaking). Other days I think to myself, "There have to be some perks to surrendering our time to the billable hour, and perhaps a nicer house in an in-town neighborhood should be what we spend our money on." We really do have days where our "target" price changes by a couple hundred thousand or so. It's that extreme. We've both gotten so confused by it - putting a price tag on convenience and lifestyle is a lot harder than I ever imagined.

Hopefully getting the insurance questions answered will firm up our price range a little bit. Thanks for all the help!

takmjs · November 2013

I haven't read everyone else's posts, but don't you have a one-page summary of your benefits? We have one that says the deductible, out-of-pocket max, copays, prescription costs, ER visit copays, etc. for single vs. family, in-network vs. out-of-network. Plan on the out-of-pocket max and double it--if it stretches into 2 calendar years, you'll have to pay it for each year. Plus, once baby's born, baby counts separately and you have to pay insurance costs for both of you. Our original plan is to have our next baby so the bulk of the appointments (the last 6 months) will land in one calendar year.

If you have a plan that has an in-network vs. out-of-network provider option, stay in-network. I had an amazing doctor for my first pregnancy who I love and trust, and he's a high-risk OB. Our insurance changed, so for my next pregnancy, I originally said I'm willing to pay the extra out-of-network deductible cost (about $3000) to see him. Then, my insurance finally clarified for me that the out-of-pocket max did NOT include the costs above what they're willing to pay (the discount they give for the in-network providers) if I go out of network. I figured it out for my first pregnancy (where I had lots of appointments, 5 weeks of hospital bed rest, an emergency c-section, and a 7-week NICU stay), and it would've cost me about $120,000 just for those beyond-usual-and-customary costs. No thank you. I loved that doctor, but it's not worth that much.

We have amazing insurance (I'm a public school teacher), and I paid $200 total for that entire pregnancy/birth.

Smonet · November 2013

It sounds like you are going to check with your insurance company which is great. Mine didn't give me much more info other than what I knew about my deductible etc. However your obgyn should have a good idea for you. Ours bills in one lump sum based on vaginal delivery or c section. That amount included everything except additional ultrasounds or testings, hospital room charges, baby's own charges, circumcision, peds rounds, discharge for baby, and epidural. We had a 1k deductible and received $2900.00 in flex dollars from our employees and didn't pay anything out of pocket that year. I. Relieve your insurance covers the baby for the first 30 days.

Frankly this was the biggest expense in having a baby besides day care (which is the biggest) IMO.

You can register for baby stuff and can get by as inexpensive as you need really on that stuff. I know everyone complains about diapers but I didn't really find that to be a noticable cost. I would rand child expenses as:
Daycare
Delivery
Mat leave if unpaid
Baby stuff

Personally I feel the location of where you buy is so important to quality of life. I would rather live where I do and cut back on fancy strollers, use generic diapers etc. over settling on a home location to be able to spend more on other things if you can swing it!

hoffse · November 2013

Smonet said:

It sounds like you are going to check with your insurance company which is great. Mine didn't give me much more info other than what I knew about my deductible etc. However your obgyn should have a good idea for you. Ours bills in one lump sum based on vaginal delivery or c section. That amount included everything except additional ultrasounds or testings, hospital room charges, baby's own charges, circumcision, peds rounds, discharge for baby, and epidural. We had a 1k deductible and received $2900.00 in flex dollars from our employees and didn't pay anything out of pocket that year. I. Relieve your insurance covers the baby for the first 30 days. Frankly this was the biggest expense in having a baby besides day care (which is the biggest) IMO. You can register for baby stuff and can get by as inexpensive as you need really on that stuff. I know everyone complains about diapers but I didn't really find that to be a noticable cost. I would rand child expenses as: Daycare Delivery Mat leave if unpaid Baby stuff Personally I feel the location of where you buy is so important to quality of life. I would rather live where I do and cut back on fancy strollers, use generic diapers etc. over settling on a home location to be able to spend more on other things if you can swing it!

This is kind of where I'm at, honestly. My living space has a huge affect on my happiness. I've lived in some great places and some less great places, and I have noticed a profound difference in how I feel. I am actually paying way more than market to rent the apartment I have right now, because it's much nicer than most of the apartments in the surrounding area. I decided if there was one thing that I would splurge on, it would be my living space.

My hang-up with doing the same thing for a house is that I've never owned a home before, and I have all the new homeowner worries that are associated with it. I have a pretty good idea of how much I need to save, but I don't really know for sure... we could move in and suddenly have the A/C break (and I live in AL - if the A/C breaks it's like a serious emergency). Or we could find ourselves making repairs to the plumbing or floors or something. I'm paranoid that these sort of unexpected expenses will basically drain us, and that will require us to push back TTC. The really conservative part of me argues that if we don't spend much on the house to begin with, then these sorts of repairs wouldn't interfere with our other plans. But then the more rational part of me says I'm being ridiculous... and then the cycle starts all over again.

I really think I should have been an accountant - most of the ones I've met are just as paranoid as I am.

Smonet · November 2013

I felt the same way and had the same internal argument when I bought my first home as a single woman. The what ifs drove me crazy. For example during my inspection they told me the furnace and ac unit were original and I would have to replace them. Every year when call came around I would fret about how I was going to afford to swing the repair. Turns out the furnace aster another 9 years and that is now our rental property so DH and I decided to finally replace it.

I've always been one to squeeze into more real estate than I can afford as an investment. I eventually catch up and then it pays off, so I completely mader stand the fear of all that can go wrong being a homeowner, especially a homeowner of two. However, to get to the point, DH has really taught me that a house is just a structure. He is in the construction industry. As why a water leak or floors that need to be replace are scary things, sometimes it's as easy as paying to have the leak fixed and just waiting a bit to do floors. I've learned Sheetrock and paint are cheap and not as intimidating as I one thought.

Also keep in mind resale. Will it be easier to sell in the more desire able neighborhood if you need to? Will it hold its value better? My guess is probably!

Even if cabs flow is a bit tight a month when you have a repair, is it worth it to get tod spend that month on a tighter budget in a home you enjoy more?

bslsg13 · November 2013

Midwives at non-hospital birthing centers are WAY less expensive and totally the way to go IMO. From the research I've done $1500 or so will cover ALL your prenatal visits/checkups, the actual birth itself, PLUS 6 weeks of aftercare. So if you have a normal, healthy pregnancy (no placenta previa, diabetes, etc) a midwife is probably the way to go especially from a financial perspective. Some insurance companies even cover the midwife expenses. You'd have to check with your insurance.

cbee817 · November 2013

$0 for both girls- all pre-natal and delivery expenses are covered in full with my plan. All child visits (sick or well) are also covered in full until they are 19. All generics for kids under 19 are covered in full too- Brand is $25 or $40 depending on tier. Urgent care is $25, ER/Ambulance is $250, and non-delivery Inpatient stays are $500. The insurance is through my employer (who is a health insurance company)- I pay $75/paycheck for family coverage including dental. I had DD#1 at 28, DD#2 at 30 and 2 really easy pregnancies and deliveries that I am so grateful for. I received 6 weeks of FMLA from my employer (100% pay) and took the other 6 weeks in personal vacation time (100% pay).

I don't think your insurance company should be vague about pre-natal and delivery coverage- it's a pretty standard benefit. Did you tell them who your doctor was and what hospitals they are affiliated with? Have you talked to your HR dept or received your plan benefit booklet? All copay and/or deductible information should be available and hopefully your doctor is in-network.

The biggest shock you're going to get is day care expenses- for 2 kids to go 5 days a week, it's over $20,000/year to send them to a day care center. That has been the biggest adjustment for us- we have put off new cars (I have a 2003, DH has a 2006), a larger home (our current home is about 1,700 sq ft not including a full basement), and starting 529 plans until they are in kindergarten.

JodiAriel · November 2013

Remember medical expenses dont end at birth. It was $1900 for me for my girls delivery and $450/ea for them. Plus random expenses during pregnancy (blood work, in patient monitoring, high risk co-pays, etc) that totaled another $600. Plus chiropractic to keep me moving and to turn my breech babies (another $600).

Then my almost 1 year old had a 104 fever for a few days straight and had to be seen at the ER to be checked for a UTI. No UTI but they admitted her for 24 hr. That bill = $1508.

Medical bills are unpredictable and never ending. You can plan and plan and be lucky or you could end up on bedrest and not only have higher medical bills but less income. All the planning goes out the window once you add pregnancy and children into the equation.

katlizabeth · November 2013

Both of my pregnancies and births were covered 100% by my insurance. I had very "normal" easy pregnancies and births. My current insurance requires a co-insurance of $1,000 per year, so if I got pregnant again, I'd pay that for each calendar year.

JuneMrs · November 2013

Look at your insurance carefully. I paid $0 to take baby home and $0 for well visits BUT when LO had some trouble gaining weight I had to pay copays for 2 or 3 weight visits which cost $15 each visit.

Parents - what did you spend on hospital bills?

Re: Parents - what did you spend on hospital bills?

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