Health Savings Accounts & Pregnancy Coverage

	Individual & Family Health Insurance
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HSAs and Pregnancy Benefits

The vast majority of employer-sponsored plans provide full pregnancy benefits with no pre-existing condition limitations.  However, maternity coverage is a wholly different matter under health insurance plans marketed to individuals and families in Illinois and in Indiana.

If they don't have employer-sponsored coverage, many families have difficulty finding affordable maternity benefits in the individual health insurance market.  In this circumstance, HSAs can be a valuable resource.

Using HSAs to Fund Maternity Expense

Most individual health policies typically include protection against complications of pregnancy, which can involve catastrophic expenses.  In comparison, the cost of routine maternity services is predictable, and could be funded, via an HSA, over two or three years.

So we suggest buying insurance for the potential catastrophic expense, and saving for the predictable expense.  That's just sound financial management -- especially when you consider the predictable maternity expense may not even occur.

For example, you buy a traditional individual health insurance policy with limited maternity benefits that cost an extra $250/month.  Years go by, and there is no pregnancy.  The extra $250/month you've paid is gone.  You've got no baby and you've got no money.

If you'd been depositing that extra $250/month into an HSA, you'd still have the money (with interest accumulation).  You could let the savings continue to grow, or you could even use these funds, without tax consequence, to pay for infertility treatment that your individual health insurance policy won't cover.