The birth of a child is, for many parents, one of the happiest days of their lives. Unfortunately, it’s also often one of the most expensive.
There are medical costs, as well as the necessities you’ll want to have on hand before you bring your little one home – not counting all the adorable items you’d love to put in the baby’s nursery.
Knowing what the costs may be can help you prepare and make sure your money is well spent. Here’s a look at the bundle of bills that might come with your new bundle of joy.
Pregnancy Expenses
Pregnant women with private health insurance face an average of nearly $3,000 more per year in out-of-pocket medical costs than their peers who aren’t pregnant, according to research from the health-policy research organization KFF.
Of course, the actual costs vary a lot based on things like insurance coverage, location, and whether any complications arise during pregnancy or delivery.
“If you have private insurance, the amount of your deductible can make a difference,” says Usha Ranji, associate director of women’s health policy at KFF. “For people that have plans with a very high deductible in a year where you’re having a baby, you could reach that deductible, which could be several thousand dollars out of pocket.”
Prenatal care is one of the 10 categories of essential health services that most health insurance plans must cover in full for policy holders. That means that most pregnant people shouldn’t face any out-of-pocket costs for most prenatal appointments, Ranji says.
But there can be health care costs beyond those essential services.
Pregnant women with insurance through their employer (or their partner’s) spent an average of $1,329 out of pocket on services like ultrasounds, lab tests, and office visits, according to a 2023 study from the nonprofit Health Care Cost Institute (HCCI), their most recent report on the topic.
Doulas and Childbirth Classes
Hiring a doula typically costs between $500 to $2,500 out of pocket (although at the higher end, rates can go beyond $5,000). More than 20 states provide Medicaid coverage for doula care, and a few more are in the process of putting such coverage in place. But private insurance typically doesn’t cover it.
Childbirth classes also vary in price, based on things like location and the type of class. Some states fully cover classes through Medicaid, while others provide no coverage or have restrictions on class types. Private insurance coverage of childbirth classes also varies by plan, says Amani Echols, MPH, senior manager of maternal and infant health at the nonprofit National Partnership for Women & Families.
“Childbirth classes have shown to contribute to favorable birth outcomes, including less labor interventions, increased breastfeeding rates, and improved mental health by reducing stress, anxiety, and depression,” Echols says.
Consider the benefits: While support such as doulas or childbirth classes can be costly, research shows they can have a positive impact, Echols says. She notes that doula support is linked to lower rates of C-sections, preterm birth, and low birthweight, higher rates of breastfeeding, and better childbirth experiences.
“Childbirth classes have shown to contribute to favorable birth outcomes, including less labor interventions, increased breastfeeding rates, and improved mental health by reducing stress, anxiety, and depression,” Echols says.
Delivery Expenses
Time spent in the hospital, where most U.S. babies are born, accounts for most out-of-pocket medical costs tied to childbirth, since people with private insurance may have to pay a copay or cost-sharing deductible for their hospital stay. (Separately, Medicaid covers about 41% of U.S. births.)
The HCCI study found that time spent in the hospital accounts for 60% of pregnancy-related health care costs, including what insurance and individuals paid for. Women with insurance through their jobs spent an average of $1,741 on their hospital stay. Costs were slightly higher for those who gave birth via cesarean section versus vaginally.
What you can do: Check those “This Is Not a Bill” statements that you get in the mail. Hospitals often make billing mistakes, so it’s important for new parents to double-check everything before making a payment, says Caitlin Donovan, senior director at the Patient Advocate Foundation.
“Don’t pay any medical bill until you get your Explanation of Benefits [EOB] in the mail,” she says. “That’s the packet that says ‘This is not a bill’ that a lot of people ignore.”
“It’s basically a receipt telling you what they billed your insurance for,” Donovan explains. “If they haven’t billed your insurance and are billing you directly, you’re definitely paying too much.”
Postpartum Care Expenses
There can still be medical costs after having a baby.
Postpartum care for the person who gave birth makes up the smallest amount of total expenses. People who have health insurance through their employer spend, on average, $423 in out-of-pocket costs the year after giving birth. Office visits account for about a third of that amount, according to the HCCI.
Breastfeeding benefit: For people who want to breastfeed their babies, many health plans cover lactation support, including a breast pump, as an essential health service.
Pharmaceutical Expenses
Compared to other medical conditions, out-of-pocket medication costs during pregnancy are relatively low. The HCCI data shows that people with employer health insurance spent only about $30 on medications while pregnant or in the year after giving birth.
For pregnant people who do need to fill prescriptions, Donovan shares these tips:
- Ask whether a generic prescription is available.
- Find out if it’s less expensive to pay for the medication with cash, using the non-insured price.
- Ask your obstetrician if they have a medication sample.
Prenatal vitamins: By law, most insurance plans must fully cover prenatal vitamins, when prescribed by a doctor.
Diapers, Formula, and Child Care Costs
As any new parent knows, the costs of bringing home a new baby extend well beyond doctors and hospitals.
“[The medical costs] don’t even scratch the surface of all the other costs that birthing people and their families have when they have a child, such as diapers, supplies to feed your infant, and all the other newborn care that comes up,” Echols says.
In a baby’s first year, parents spend more than $9,000 on baby-related items. That includes more than $1,100 for diapers and more than $2,000 on formula and baby food, according to a 2022 estimate by Baby Center.
Some other basic supplies to consider buying before baby comes include:
- Car seat
- Crib
- Wipes
- Changing table
- A few baby clothes to get you started
- Baby monitor
Before you buy: Some of these items, like baby clothes, make sense to buy secondhand. But you’ll want to be sure that items like car seats, cribs, and changing tables meet current safety standards. For car seats, you can check the National Highway Traffic Safety Administration’s Car Seat Finder. For cribs, you can search the product’s name in SaferProducts.gov.
Then there’s childcare. For an infant, that cost ranges from an average of $230 per week at a family care center to $766 per week for a nanny, according to Care.com’s 2024 Cost of Care Report.
People who can’t afford or choose not to use childcare may need to factor in the lost wages of one parent quitting their job or taking a pay cut to reduce their work hours and care for their baby.
It’s all part of the life changes of becoming a parent. By knowing the potential costs and planning for them, parents may be able to spend less time concerned about costs and more time enjoying the newest addition to their family.
