Financially Preparing for Parenthood: The Cost of Childbirth in America

Having a baby is one of the most wonderful, life changing and exciting moments in a person’s life, but it can also be quite expensive, especially in the US.  While many classes exist to prepare soon to be parents for the birth experience and hospital tours are offered to help get parents acclimated with the birth environment, one of the little discussed elements of having a baby is the cost associated with the delivery of your child.

The cost of delivering a baby in the hospital can be significant, but there are several things you can do to anticipate and prepare for those costs.

Key Takeaways of this article include:

• Delivery costs vary immensely based on geography, type of delivery and health insurance

• You will receive several bills for a hospital delivery in the US: Hospital Care for you and your new baby (separate bills), Physician Services (OB,  Anesthesiologist and Pediatrician will be separate bills) & Cost of Care for your New Baby

• Consistent Prenatal Care can help you anticipate the cost of delivery. Tracking your health and your baby’s health will allow your physician and hospital to prepare.

• To keep costs under control, take time to understand what is and is not included in a physician’s bundled charges and double check those charges to make sure you’re not being over-billed. If you need help with this, Tricky Bills can assist.

So, how much does it cost to have a baby in the United States?  

Unfortunately, it’s very difficult to get a straight answer because costs will vary dramatically based on factors like geography, the hospital network, the type of delivery you undergo, whether you have health insurance and if you do have insurance what each plan covers may differ.

A study published in May 2023 by the Healthcare Cost Institute showed that the average cost of having a baby from prenatal through postpartum care is over $24,000.  The study shows that around 60% of the total cost is related to labor and delivery, while 25% of the costs are associated with prenatal care and the remaining 15% of costs are related to the following 12 months of postnatal care.  On average people paid 14% out of pocket following insurance payments meaning the average consumer could anticipate $3,400 in medical costs associated with prenatal care, childbirth and postpartum care.

With that said, broad disparities associated with costs and amounts charged for the same services can exist, even within the same metro areas. It was observed that some of the more expensive hospitals charge 2x-5x more for childbirth than the same services in a nearby hospital. HCCI’s data revealed that even patients with insurance plans could be billed twice as much as other patients for the same service at the same hospital. This variation in billing was relatively consistent whether the patient had a vaginal birth, c-section or complications with their delivery.

 Additionally, the allowed amount of healthcare services varies by state with some examples below from HCCI’s 2020 data:

In other studies, Peterson-Kaiser Family Foundation Health System Tracker, showed an  average cost of vaginal delivery is $14,768 ($2,655 paid out of pocket) while the average cesarean section ran $26,280 ($3,214 paid out of pocket). Other cost analysis revealed that childbirth costs can run as high as $30,000 for a vaginal delivery and upwards of $50,000 for a cesarean section in some metropolitan hospitals while other hospitals in states like Utah and Idaho charge as low as $6,000 for a vaginal delivery or $10,000 for a cesarean section.  

So, what needs to be considered when trying to anticipate the cost of child birth?

Several factors can affect the cost of having a baby in the US including:

1. Type of Delivery.
   Vaginal delivery is generally lower than the cost of a cesarean section, but any change to the birthing plan beyond what would be considered a normal delivery with no complications, will put the charges into higher fees.

2. Geography.
   The cost of giving birth varies widely depending upon where you live.  In general, urban/metropolitan areas can be more expensive than rural areas; however some states have higher out of pocket costs.

3. Health Insurance.
   If you have health insurance, the cost of giving birth will depend on your insurance coverage. Some insurance plans cover all or most of the birth procedure while others cover a percentage or portion of the cost.
   *Tip – Using an in-network hospital or birthing center will generally help control for costs of childbirth as rates are controlled and pre-negotiated between insurance companies and hospitals.

4. Prenatal Care.
   Prenatal care can affect the cost of giving birth. If you have complications during pregnancy, you may need more frequent or specialized prenatal care which can increase the overall cost. Your status would change from normal to high risk pregnancy/delivery.

5. Postpartum Care.
   After giving birth, the mother often needs additional care.  Post partum care can include follow up care related to tears, blood clots, prolapsed pelvic organs and challenges with nursing after hospital discharge.

Are there any ways to reduce or keep your costs in check when having a baby?

1. Make sure you understand your health insurance plan’s coverage before giving birth, including your anticipated patient responsibility. A hospital delivery in the US will consist of several different bills for their services including bills for Hospital Care for you and your new baby (separate bills), unique bills for Physician Services (OB,  Anesthesiologist and Pediatrician will all bill separately) & any additional cost of care for your New Baby.

2. Speak to your insurance company or your benefits HR lead at your employer to anticipate costs. If you need an independent resource to help you anticipate costs and coverage, you can call Tricky Bills.

3. Register with the hospital in advance of your delivery to make sure your birth is being covered as in-network. Delivering within a facility that is in-network and using doctors who are in-network will help control costs.

4. Review what is covered and not covered by your plan. *If you have a high deductible plan, you may need to pay a larger portion of the out of pocket costs.

5. Depending on your delivery needs, you could  consider a birthing center or working with a midwife as costs could be lower than a hospital; make sure to check with your insurance provider to confirm these are covered. In some instances, Midwives are covered by insurance and are providers for insurance companies or they work under a physician who is listed as a provider under that insurance company.  Other Midwives may not qualify for any insurance coverage.

6. Negotiate or ask for Financial Assistance with both your physician and hospital. If you are uninsured or underinsured, you may be able to negotiate a lower price with your healthcare provider. Ask to speak to a financial counselor to understand your options. Options could include a payment plan, discount, sliding scale fee, application to medicaid. Tricky Bills can help advise on specifics of the available programs if you need additional information or assistance.

7. Plan ahead.  Make sure to understand any risks or potential complications associated with your pregnancy to try and anticipate the costs.

The costs associated with having a baby within the US can be overwhelming. It’s important for women and their families to understand their delivery options and their financial obligations so they can plan ahead to ensure a healthy physical, mental and financial start to having a family. 

If you need additional assistance with anticipating these costs or dealing with any high medical bills; Tricky Bills offers one-on-one support with a medical billing counselor to help vet and validate your bills and ensure you are paying the correct amount due.