How Much Does It Cost To Have A Baby?

It’s no secret that welcoming a little bundle of joy into your family can be an exciting and life-changing experience. As you think about growing your family, you may start to consider the costs associated with that joy. From the OB/GYN visits and new maternal wardrobe to hospital stays and nursery necessities, the question becomes: how much does it cost to have a baby?

While these different expenses can seem tricky to navigate, fear not. We’ve created a simple guide so you can understand what to expect as you prepare to welcome the newest member of your family.

Childbirth costs can vary widely based on a series of factors, like where you live, the hospital you stay in and even the type of delivery used. The average cost of having a baby is high and leaves parents, even those with insurance, spending thousands of dollars out of pocket. Additionally, the cost of having a baby is more than just the childbirth itself, which we’ll discuss later.

The average cost for childbirth depends on several factors like the type of delivery and medical services required, but it’s typically upward of $13,000 in the United States. A caesarean section (C-section) is more expensive than a vaginal birth and has an average cost of over $22,000. However, these costs will also depend on insurance coverage and vary widely from state to state, so it’s best to check the average cost in your state and review your insurance policy.

These numbers are also higher if the pregnant person or child experiences complications, since they would most likely have a longer hospital stay and require more services and medication. Additionally, the cost of having a baby in 2022 is impacted by skyrocketing inflation.

As you most likely know, the phases involved in having a baby include more than the childbirth itself. Each of these phases comes with a distinct set of costs that parents must prepare for. There are the costs associated with pregnancy and maternal care, medical bills from the prenatal care and the birth of the baby and the expenses of the baby’s first year of life.

Pregnancy

Pregnancy is not easy! As anyone who’s been pregnant could tell you, your body goes through a series of drastic changes. These changes come with a series of potentially high costs to ensure the health of your baby as well as your comfort. Some of these costs include:

• Maternity care consisting of prenatal vitamins and checkups at the OB/GYN to ensure both the parent and the baby are healthy and growing.
• Maternity clothes to wear during pregnancy and after hospital birth as your body changes. You will most likely need things like several pairs of underwear, maternity bras, comfortable shoes, shirts, jeans and additional clothing in various sizes.
• Lamaze classes where parents learn relaxation and breathing techniques to ease discomfort during childbirth.
• Additional classes like infant care, infant CPR and breastfeeding classes that some parents choose to take.

Birth

When the time comes for the baby to be delivered, there are two main factors that influence the cost: the type of birth and where you choose to have your baby.

As discussed previously, your baby can have a vaginal delivery or be delivered by C-section, the average costs of which can be upward of $13,000 and $22,000 respectively. While these averages include pre- and post-delivery charges, they’re also specific to hospital births. At a hospital, you’ll usually spend at least one night, but typically longer if you’ve had a C-section. You may be seen by nurses, anesthesiologists and an obstetrician or midwife. You may also receive such services as postnatal care and fetal monitoring, all of which can make up the hospital bill for having a baby.

While most births take place in a hospital, some pregnant people want to forego some of those expenses and give birth at home or in a birthing center. These birth plans can be more affordable and bring a sense of comfort, especially during the COVID-19 pandemic. However, hospitals tend to be the safest option, especially for high-risk pregnancies. Additionally, these options are not always covered by insurance, so if you’re considering them, you should consult with your doctor and insurance provider.

First Year

Newborns require a lot of care and special equipment, so expect the first year of their life to be expensive.

• Costly, one-time items: These are things like cribs, a stroller, a baby carrier and a car seat. These items are on the more expensive side but choosing what to spend your money on is key. For example, strollers typically cost $100 – $300. If you’re someone who knows that you’re going to spend a lot of time outside with your baby, you may want to spring for a more expensive, but durable stroller.
• Repeat expenses: These are items like clothes and diapers. Your baby will grow a lot in their first year of life and will most likely get a lot of clothes dirty. As a result, parents in 2021 spent about $20 – $50 per month on new baby clothes. In addition to getting their clothes dirty, babies will run through diapers like you wouldn’t believe. Parents in 2021 typically spent $18 per week ($936 per year) on disposable diapers alone.
• Feeding: Whether you elect to breastfeed or formula feed your baby, there are numerous costs to be aware of. If you choose to breastfeed your child, you’ll need things like a breast pump, a nursing bra and a breastfeeding pillow, as well as other materials that might make the experience more comfortable for you. If you and your partner choose to formula feed, you might not have to buy some of the same materials as someone who chooses to breastfeed, but you do have to account for the price of formula. In 2021, parents typically spent $1,200 – $1,500 per year on formula. At 6 months, your baby can start eating solid food, so don’t forget to start budgeting for that, as well.
• Health care: The cost of your baby’s health care will depend on your insurance. Many insurance companies completely cover these visits, or they cover them with a single co-pay. Medicaid also covers these wellness visits.
• Child care: Child care is arguably one of the largest expenses you will encounter as a parent, as day care alone can cost families tens of thousands of dollars per year. According to CNBC, U.S. families spent an average of $8,355 per year on child care. And while child care costs can vary wildly based on where you live, they are increasing in most places. Some families may choose to hire a nanny or a babysitter, depending on their needs, but this is still an extremely large expense. In an effort to save money, some parents may choose to go part-time or one parent may choose to stay at home full-time, but keep in mind that this drastically reduces your income and could impact lifetime earning potentials.

Pregnancy and childbirth are, as we established above, expensive. Health insurance can greatly lower some of these costs and reduce some of the financial burden these medical bills can have. Additionally, both pregnancy and childbirth are part of the 10 essential health benefits that insurance companies must cover, though there aren’t any rules specifying how. Thus, you will need to become very familiar with your insurance policy.

Cost Of Having A Baby With Insurance

How much you pay with insurance is dependent on three aspects of your insurance coverage: your deductible, coinsurance and co-pay. Your deductible is the amount of money you need to spend on medical treatment before insurance will help pay for some of the costs. Once you meet this deductible, your insurance shares the cost of your care with you under coinsurance. For example, if your hospital birth cost $14,000 and your deductible was $2,000, you would pay the $2,000 on your own. Then your insurance would split the remaining $12,000 with you. The percentage of the $12,000 you would pay depends on the specifics of your coverage.

Co-pays, on the other hand, are the preset fees you pay each time you use a service, but copays do not go towards your deductible. Co-pays can be utilized with in-network physicians. For example, if you visit an OB/GYN that your insurance covers throughout the pregnancy, you may pay them a small fee every time you go, rather than the cost of the entire visit.

Ask your insurer which local hospitals are in your plan’s network, how long a hospital stay is covered after delivery and whether you’ll have to share a room. While your insurance can’t guarantee a specific cost, they can give you an estimate that should help you to budget.

Cost Of Having A Baby Without Insurance

Without insurance, the cost of having a baby increases dramatically. On top of the medical bills from the hospital, you will also have to cover the prenatal screenings and any tests or ultrasounds performed. The costs of these services depend on where you live, but having a baby without insurance means that you will have to pay for all of your appointments, treatments, the hospital stay and the cost of any birth or fetal complications on your own. This is in addition to the cost of the nonmedical services and items needed, like maternity clothes, birthing classes or a crib.

In the last several years, we have seen a rise in health insurance plans with high deductibles, hence why your hospital bill is so expensive. Remember that a deductible is the amount you need to spend on medical services before your insurance will help you pay for them. So, as more people are covered by plans with high deductibles, more people are having to spend more on medical treatment before it’s covered by insurance, in addition to the cost they will take on once coinsurance kicks in.

As you can see, having a baby can be expensive. However, saving money is not impossible and there are several things parents can do to reduce the cost of having a baby.

• If you can, keep your care in-network. Talk with your hospital, doctor and insurance company to understand cost and coverage before your baby is born. You don’t want to be negotiating during labor.
• Make sure your anesthesiologist is in-network. Sometimes the hospital may be in-network, but the anesthesiologist isn’t.
• If you plan on having a baby in the future, shop around for your insurance with the cost of pregnancy in mind.
• If you don’t have insurance, utilize a pay plan with the hospital or negotiate the cost of services. Additionally, ask if your OB/GYN has any cash discounts or discounts for people without insurance.
• Instead of trying to buy maternity and baby clothes new, shop at local thrift stores or ask friends and relatives who have recently been pregnant if they have any clothes they’d be willing to donate.
• Look for some of the bigger one-time expenses (like cribs or strollers) on an online marketplace or mom-to-mom sale, but make sure that you test anything you buy before you use it for your baby to make sure it’s safe.
• Buy in bulk. Babies obviously run through a lot of diapers, clothes and food, so buy in bulk if you can. You’ll get more bang for your buck and what you buy will last you longer.
• Split the cost of child care with those around you. If you and a close friend or neighbor have kids of a similar age, consider getting a nanny or a babysitter who can watch all of your kids and split the cost between you.

Having a baby can be an amazing, but expensive, experience. Budgeting for your baby and talking with your insurance carrier and local care providers can bring down medical costs extensively, but it’s also important to budget for the changes that accompany both a growing human and a growing family. As you prepare to start this new journey with your family, learn more about how to budget for a baby and get ready for the adventure of a lifetime.