Parents of very young children often face a barrage of medical experiences. As such, finding quality health insurance is a necessity for parents of infants, though the task may seem intimidating. You can start by exploring the function of infant health insurance, types of coverage, insurance benefits and considerations.
Function
Infant health insurance, like adult health insurance, serves the purpose of offsetting the cost of medical care. Because infants often require considerable care during the first year of life, expenses can add up quickly and health insurance can help alleviate some of the pain of those bills. When the child visits the doctor, the parent presents the infant's insurance information to the health care provider. The provider then, rather than requiring immediate payment, bills the health insurance company. The insurance company, in turn, pays for a portion of the cost of the visit, and the medical provider bills the infant's parents for the remaining balance. If an up-front "co-pay" is required by the infant's policy, this payment may be required by the health care provider at the time service is rendered.
Types
Some types of infant health insurance include private insurance, an arrangement in which the infant's parents seek--and pay for--their own coverage without assistance. Group health coverage, a more common and less costly alternative, is often offered at some discount by the infant's parent's employer and may be paid for through payroll deductions. Finally, state assistance such as Medicaid may help support low-income or needy families through low-cost or free taxpayer-supported coverage; families generally must pass an application process before this type of coverage may be extended.
Features
Almost every insurance policy is unique, as features vary depending on the provider and subscriber. Co-payments, the payment required by the health care provider at the time of service, are usually nominal fees but can be upwards of $250 for emergency treatments. Deductible amounts, or the amount that the infant's parents must pay before insurance covers additional costs, are sometimes necessary and may reach into the thousands of dollars. In addition, insurance providers may require subscribers to pay a percentage of the medical bill until the deductible is reached, at which time the insurance company may cover a higher percentage--or even all--of the health care provider's bill.
Benefits
As mentioned above, health insurance can cover a considerable portion of the medical bills incurred during the first year of an infant's life. This coverage can greatly reduce the financial burden often associated with health care, and having quality insurance may improve the likelihood of the infant to receive excellent attention and care. The reduced out-of-pocket cost incurred by the parents as a result of health insurance also reduces the hesitation experienced by some parents in taking their child to the doctor, further promoting the health and well-being of the infant.
Considerations
When shopping for infant health insurance, it is critical to carefully evaluate insurance provider levels of coverage, required pre-certifications, deductibles and the company's overall reputation. Different policies may require different out-of-pocket expenses, so parents of infants should carefully evaluate policies before entering into an agreement.
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