Childbirth: HSA Eligibility

All expenses related to the birth of a child are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Expenses for the child may be eligible as well, provided that they are added as a dependent on the plan. Childbirth expense reimbursement is not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What childbirth expenses should I expect?

Childbirth is a pivotal event in a new parent's life, but it comes with its fair share of financial burdens that can be difficult to estimate in such a fluid situation that could change at any moment. Consumer-directed healthcare accounts like FSAs, HSAs and HRAs can cover a huge range of pre-childbirth expenses such as Lamaze classes and products necessary for the baby's healthy development (baby sunscreen, prenatal vitamins, nursing supplies, thermometers, etc.), but these accounts can also cover the direct hospital expenses that are accrued during the act of childbirth. Medicaid and group private insurance plans will cover almost all pregnancy-related health care costs, but understanding what the typical experience will be for new parents can help them estimate their potential spending. The following are among the chief expenses new parents should expect during childbirth.

  • Childbirth Procedure: Depending on the delivery method needed for the successful birth of the child, there will be a major difference in cost between a vaginal birth and a Cesarean section. A Cesarean section can cost nearly double due to the fact that it involves anesthesia and longer hospital stays. Additionally, any complications that may arise during delivery, such as premature rupture of the amniotic sac, irregular blood pressure, breathing problems and others, may require additional costs and treatment.
  • Health Complications: Specific health conditions can also costly for both mother and child. For instance, if a child is born prematurely, this will require a longer hospital stay and additional treatment, which will increase the overall cost. Additionally, mothers with specific health conditions could potentially increase the expense of their visit, such as women who are diabetic. Additional hospital stays, medications, treatment methods and more will all contribute to parents' overall expenses.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB01 11/18/2017 9:57:59 AM