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May 10, 2019

Can a newborn collect on an ICU or Hospital Indemnity insurance policy?

It’s usually not part of your birth plan.

When your baby is born too early or has health problems, he or she may need to spend the first few days, weeks, or even months of life in a hospital neonatal intensive care unit (NICU). It can be an extremely trying time for new parents, emotionally and oftentimes financially.

If you are a parent whose baby (or babies) need to stay in the NICU, make sure to contact your health insurance company right away to add your newborn to your insurance plan (if you haven’t done so already), and then ask exactly what NICU costs your insurance will cover and what you will be responsible for paying. You may want to contact your insurance company about these concerns before your baby is born so you’re prepared.

If your insurance does not cover the cost of all of your baby’s care, marchofdimes.org suggests that you ask the NICU social worker or case manager what to do, and they may suggest you apply for more insurance or financial aid, like Medicaid or the Supplemental Security Income Program if your baby qualifies. Marchofdimes.org also notes that if your insurance doesn’t cover all your bills, talk to someone from the hospital’s finance department about setting up a payment plan1.

If you have supplemental insurance like an ICU or Hospital Indemnity policy in place, you may be wondering if your plan includes a NICU stay for your newborn.

According to growingfamilybenefits.com, “Hospital indemnity pays an extra benefit when you check into the hospital for labor and delivery,” and is “most valuable when mom has complications before birth and/or when her infant requires specialized care in the Neonatal Intensive Care Unit.” Growingfamilybenefits.com also notes that “supplemental health insurance for maternity works best when the mother has underlying coverage already in place”2.

Care.com also makes note of how hospital indemnity insurance could be advantageous to parents with a baby in the NICU: “Depending on the policy, coverage ranges from the mother’s admission to the hospital for a normal labor and delivery to an ill infant’s stay in a neonatal intensive care unit”3.

If you want to know what your supplemental insurance policy covers or if it includes a benefit for your baby’s NICU stay, reach out to your licensed insurance Agent and review your policy. If you have any other questions about supplemental health insurance and benefits for NICU stays, contact a licensed insurance Agent.

  1. "How do you know what NICU costs are covered by your health insurance?" May 28, 2019
  2. "Best Health Insurance Plans for Pregnancy," May 28, 2019
  3. "6 Facts About Pregnancy Insurance And Supplemental Policies," May 28, 2019

Categories: ICU Insurance, Insurance, Supplement Health Insurance

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