Health Insurance
The need to have health insurance is one of the easier financial topics for most parents to understand. Even regular visits to your pediatrician can be expensive, but if your child develops medical problems or ends up being hospitalized, the expenses can quickly add up and cripple a family financially.
If you don't have health insurance or if you don't have coverage for immunizations, look for a doctor who participates in the federal Vaccines for Children (VFC) Program. In this program, eligible children can get free or low-cost vaccines (although you may have to still pay for an office visit or vaccine administration fee depending on where you go).
Having health insurance is an important way to protect both your finances and your child's health. Without health insurance, your children:
May not get all of their vaccines on time
May have to go to the emergency room instead of visiting their regular pediatrician
May miss out on treatments to prevent chronic illnesses (such as allergies and asthma) from getting worse
May not get medications they need because you can't afford them
Health Insurance Choices
In general, the more benefits you get, the more expensive your insurance package will be. Less expensive health insurance isn't going to be very helpful, though, if it doesn't meet your needs, so put some thought into which plan you choose.
Your options for insurance plans may be limited, especially if you're getting coverage through an employer. But there are still some things to keep in mind. In general, indemnity plans, which allow you to see whichever doctor you want and send the bill to your insurance company, will provide many more choices. However, they are likely to be much more expensive than managed care plans, such as Preferred Provider Organizations (PPOs) and Health Maintenance Organizations (HMOs). Here are some other things to consider when choosing insurance that will cover your new child:
If possible, choose a PPO or POS (Point of Service) plan. These plans usually offer more choices and more independence, such as seeing specialists without a referral. If you choose an HMO, make sure that there are pediatric specialists on the plan.
Make sure that vaccines are a covered expense, especially during your baby's first few years, because he will be getting shots at most visits.
Consider getting prescription drug coverage. Most antibiotics and other medications can easily cost $40 to $100 each and may be more than the doctor's visit costs.
If there is a children's hospital in your area, make sure that it is on the health insurance plan that you choose.
Try to get insurance through a group health plan if your baby or any other family members have a chronic illness that might count as a pre-existing condition. With an individual plan, that condition likely won't be covered for at least a year.
You should also consider what your copays and deductibles are. Choosing a health insurance plan that costs $100 less per month doesn't make sense if you are going to be paying $1,500 or $2,000 extra each year in copays and deductibles.
In the end, you will have to balance the cost of the insurance plan with your own needs. Would you rather have a less expensive plan and have to deal with fewer choices and some inconveniences? Or is it more important that you have better coverage, even if you have to pay more?
In the United States, almost seven million children don't have any health insurance coverage. Many of them qualify for free or low-cost insurance coverage, though, either through Medicaid or a state children's health insurance program.
Medicaid
For families who can't afford insurance, their state's Medicaid program may be a way for them to get health coverage for their children. Whether or not you qualify will depend on your eligibility group, how much money you make, and which state you live in. You can look for more specific eligibility criteria or apply at your local Medicaid office, which you can find in the government listings (the “blue pages”) of your phone book under “medical assistance.”
State Health Insurance Programs
If you can't afford private health insurance and you don't qualify for Medicaid, you may have another option. Each state now offers free or low-cost health insurance for children who qualify. In most states, your child must be under the age of eighteen or nineteen and you must meet certain income requirements.
These children's health insurance programs (CHIPs) are a good way for low-income working families to get their children covered by insurance. In addition to doctor visits, these plans pay for vaccines, prescription medications, and hospital stays. To find out whether you qualify or to learn more, visit
