09/10/2013Expensive pitfalls of childbirth as an expat living abroad

If you are a couple on an expat assignment and thinking about the joys of having a baby, you will need to plan ahead when considering which country to give birth in when the special time arrives. Maternity packages and associated financial costs can vary widely between different countries of the world. A detailed review and understanding of the available maternity benefits should always be made prior to moving abroad.

Cost of returning home for the birth
While many families may be perfectly happy delivering their newborn in their newly assigned country, others may feel more comfortable with returning to their native country for the actual birth. These are considerations that must be made having full knowledge of all options available and the costs that will be incurred.

As might be expected, the United States is considered the most expensive country in the world when it comes to having a baby. CNN reported that the costs of giving birth in the United States is averaging USD 18,329 for a normal delivery and USD 27,866 for a C-section. CNN further states that the average US family often has to supplement this cost as insurance coverage limits may not cover all expenses incurred. Parents should be sure their benefits do include US coverage if they wish to return for the delivery and be aware of the benefit limits of their plan as well.

Navigating the intricacies of the US health care system is not for the inexperienced. Many people have been devastated by hospitals engaging in what could be described as ‘opportunistic pricing’, assuming that they would be treated ‘fairly’. Hospital pricing in the US, is in many ways similar to hotel pricing. Hotels have many different pricing categories for those who book early, pay in advance and those who just walk in off the street.

Similarly hospitals have different pricing based on pre-negotiated rates and the type of insurance you have. Don’t assume that they will be gentle with their pricing because you have an international health plan or no cover at all. Local insurers in the US a very long time ago learned how to deal with U.S. hospitals by forming Preferred Provider Networks (PPO).

PPO’s are essentially organisations that contract with hospitals at pre-negotiated rates. For instance, an USD 18,000 pregnancy can very easily turn into a USD 6,000 to USD 8,000 pregnancy under a PPO. Having a health plan that has a strong Preferred Provider Network (PPO) is strongly recommended if you want to have your baby in the US. Integra Global uses United Healthcare PPO as its U.S. PPO provider. With over 4,000 hospitals in the U.S. Integra Global members have access to the best hospitals in the US at pre-negotiated rates.

Having a baby abroad
What may be a surprise to many is that China, Hong Kong and Singapore are almost equally expensive as the United States in maternity costs. With a large demand for trade and manufacturing taking place in these countries, the Asian medical establishment has recognised that many expats prefer hospitals that cater to a ‘western medicine’ culture. These hospitals and clinics can be very expensive.

In a local study of member claims, Integra Global found that average costs for a normal delivery package ranged from USD 8,000 to USD 15,000. A complicated pregnancy, or C-section, ranged between USD 18,000 to USD28,000. These costs often exceed the benefit amounts offered on many insurance plans. If a family is considering having a baby in one of these countries a ‘high-end’ policy can be a valuable investment.

‘Elective C-sections’ abroad – are you covered?
Another area the expecting family should be aware of is coverage regarding ‘elective C-section’ deliveries. It is customary for most insurance carriers to offer C-section delivery coverage for conditions that are ‘medically required’. Therefore, scheduled ‘elective C-sections’ that are done out of convenience, and not medically necessary, are often not covered. These are important considerations the family needs to be aware of and discuss with their healthcare advisor.

Private versus public maternity care
In the multicultural London, expat families have the option to give birth in a NHS hospital or in a private hospital. The Medical Protection Society warns that giving birth in a private hospital is becoming unaffordable with the average costs soaring to more than USD 16,000. The cheaper alternative is to go to a NHS hospital, however, if you prefer an individualised approach, a private room, state of the art facilities and one-to one-care during labour and afterwards, you will want to give birth in a private hospital.

If you already have a health insurance plan, it is important to evaluate your existing maternity benefit and look out for the limit of coverage provided. Another thing to look out for is coverage for the baby, often referred to as Newborn Cover. It is important that your family selects the plan that will help reduce your out of pocket costs and best fits your maternity coverage needs.

Plan ahead
If you are planning on expanding your family during your assignment, looking into your plans now will pay off in major benefits later. Choosing appropriate maternity care might involve a slightly higher policy cost initially, but could save you thousands in the long run. Since maternity packages and practices vary in every country, understanding and selecting the appropriate insurance cover will avoid any unforeseen financial expenses. 

International health insurance
Integra Global is an international healthcare company that is headquartered in Europe with service offices worldwide. Integra Global has been providing excellent worldwide healthcare to expatriate families and groups for nearly 15 years.

 

Int’l UK: +44 333 405 3003
US: 1 888 753 1377 (toll-free)
E: member-care@integraglobal.com
W: www.integraglobal.com

 

Contributed by Integra Global.

 

Integra Global is the first choice for expat international healthcare. 

 

 

 

09/10/2013Expensive pitfalls of childbirth as an expat living abroad