Maternity Insurance? Necessary, or frivolous?

Reply Tue 15 Jun, 2004 04:23 pm
I understand the concept of insurance, and that insurance companies make their profits by investing premiums and by statistically gambling that the paid claims will cost less than the premiums received.

This in mind, it makes me wonder the feasibility of maternity insurance. I mean, if a couple intends to have children, they buy the coverage, right?

I'll bet that most who intend to have kids, do, indeed, come through on that intent.

Now, how can maternity insurance be profitable? It's not like cancer insurance; where most people with that insurance will never get cancer.

So it leads me to believe that the cost of the insurance must be close to the average cost of birthin' a baby, in which case, what's the point of carrying that coverage?

Your input requested, as I really don't get it.

General Tsao
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Type: Discussion • Score: 1 • Views: 1,211 • Replies: 6
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the reincarnation of suzy
Reply Tue 15 Jun, 2004 04:43 pm
I've never heard of it before.
Can you say more?
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Reply Tue 15 Jun, 2004 04:58 pm
I'm guessing that the cost is actually a bit higher than the baseline cost of birthing a baby.

However, if the birthing or baby has complications that cost a lot of money, you'll be happy you bought the insurance.
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Reply Tue 15 Jun, 2004 05:13 pm
This type of insurance could be helpful, in cases of medical malpractice, where the payback doesn't cover very much of the medical damage.
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Reply Tue 15 Jun, 2004 06:35 pm
Are you talking about a separate policy? Most health insurance automatically includes maternity benefits.
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Reply Tue 15 Jun, 2004 06:37 pm
This is from a Insurance Co. WWW site in FL:

There is no such thing as standalone maternity insurance. There are hospital supplements that will help pay for the hospital costs. Maternity riders, which will cover your maternity costs are sold with our health insurance plans. A maternity rider adds anywhere from $100 to $300 a month to the cost of health insurance. You must wait 9 - 15 months before you can become pregnant depending on which plan you use.

So at a minimum you pay $100/month ON TOP OF your regular health policy (which they are already making money off of) for a minimum of 18 months and it's $1800. At the far end you pay $300/month for that same 18 months and you end up paying $5400.

Of course most people's regular health insurance already covers 90% of the materinity costs so the payout of the rider policy is minimal (whatever you regular insurance policy's co-payments would be..). You are just double insuring yourself which is usually just a waste of money.

NOTE: CA has an entirely different setup specifically for low-income women which appears to be an actual legit policy that makes sense. Everything else I found on maternity ins. looks like a scam.
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Reply Tue 15 Jun, 2004 06:57 pm
Hmm. I hadn't heard of that before, fishin'. Looks like a scam to me, too, unless you know you'll have a high-risk pregnancy.
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