Unfortunately, as of this writing, maternity benefits are only available on group insurance through an employer in Texas. The individual/family private plans do not offer maternity coverage in Texas. Complications of pregnancy are covered as any other illness, but just not the routine pre natal, routine birth and postnatal care.
Selected Benefits recommends that clients negotiate with their OBGYN for a cash price and also negotiate with the facility where they would like to give birth. If you do this, you’ll normally pay around $4-$5000 for a routine birth which is close to what your out of pocket would have been on a private plan anyway.
One more step you could take is to purchase a HSA (health savings account) policy, which allows you to make tax-deductible contributions to an account that can be used to pay for ANY medical expense. The funds you deposit can be used to pay the “negotiated amounts” described above on a pre-tax basis. Since you’ve negotiated a lower price and are paying that lower price with pre-tax dollars, it’s like double coupon day at the grocery store. Other than a group plan through an employer, this is the best option in the private market.
We also offer an inexpensive hospital cash plan, which will pay a lump sum cash benefit of $2,000 upon the birth of a baby. Once the plan becomes effective, you have a 10 month waiting period before the plan pays out for pregnancy related hospital stays. The trick is to purchase the plan and try to time the pregnancy for 3-4 months after the effective date to be safe. These monies should be used to pay the negotiated price(s) mentioned above.
If you have questions on the technique mentioned above or are interested in purchasing an HSA policy or our hospital cash plan, feel free to contact us at 866.270.6209.