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Budgets, Benefits and...Your Baby?

The "Two Bs" of Bringing Home Baby

From selecting the safest car seat to picking the perfect name, having a baby means making important decisions — especially about your financial future. One of the best ways to protect your health and your wallet is to plan for, understand and make full use of your family's health benefits.

Expectant mothers often spend more time decorating the nursery than evaluating how their health benefits will be impacted by their growing family. A national survey found that researching health benefits usually falls to the bottom of an expectant mother's "to-do" list. In fact, more than 70 percent of expectant mothers surveyed have spent less than an hour reviewing their health benefits. How do they spend most of their time? Reading baby-related books and magazines and shopping for baby accessories and furniture. For instance, more than 20 percent say they are most focused on shopping for baby accessories and furniture, and nearly one quarter say they are most focused on reading baby-related books and magazines.

While baby accessories are fun to shop for, making sure your benefits are family-friendly can be even more important. Learning about the "Two Bs" — benefits and budgets, can help you plan for your family's financial future.

During the First Trimester (Weeks 1-12)

Morning sickness and cravings may be on your mind, but now is also the time to start thinking about benefits and budgets. The first thing you can do to prepare for the arrival of your little one is to make sure your health insurance coverage matches your needs. Using the Your Health Benefits Priorities Tool, prioritize which health benefits are most important to you. Whether low cost pediatric care or access to childbirth experts tops your list, the first trimester of pregnancy is a good time to give your benefits a check-up.

Next, create a budget that outlines the costs related to having a new baby. Using the Baby Expense Calculator can help. Answer six easy questions and find out what you'll need to budget for your baby's first year — and how health insurance can cut costs. The calculator includes out-of-pocket expenses such as childcare, formula, diapers, co-payments, co-insurance, deductibles, increased premium costs and non-covered health services.

During the Second Trimester (Weeks 13-26)

You've likely felt the first kick and even chosen a name. Now is the time to share the good news with everyone, including your employer. If you are married and both you and your spouse have health benefits, use your list of priorities developed in the first trimester to figure out which health plan is best for your growing family. Then talk with your Human Resources department to discuss everything from your company's medical leave policy to the dependent benefits offered for your new baby. Some benefits may include doctor visits, vaccinations and immunizations.

Even if you're not a first-time mom, it's still a good idea to take a fresh look at your current family health plan. If you are unsure where to begin, here are some questions you can ask to help "baby-proof" your benefits:

• Does your plan offer information to help you choose a doctor or hospital?
• What types of testing are covered during your pregnancy?
• How much time does your employer offer for maternity/paternity leave?

Visit Baby-Proofing Your Health Benefits for a list of questions to ask.

During the Third Trimester (Weeks 27-42)

You're in the home stretch and are counting down to your due date. In addition to finding the perfect pediatrician, review all the health care services your plan offers and make sure you have access to the health care professionals who can provide you and your child with the best care. Some services may not be covered by your plan, so be sure to ask if discount programs are available to help you pay for services that are important to you.

• Health Care Professionals: Find out what types of doctors your insurance covers. Choices may include a family practitioner, obstetrician or midwife.
• Counselors: Many women suffer from postpartrum depression, or the "baby blues." Counseling and Employee Assistance Programs (EAP) can help new moms feel better during this transition time.
• Doulas: Doulas can assist you during childbirth and also provide your family with the support needed after your little one's arrival.
• Lactation Consultants: Breast feeding isn't always easy, but working with a lactation consultant can help. These individuals can give you the information and guidance you need during this process.

You never know when you'll need help — and calling on experts like these may be the fastest route to raising a happy and healthy family. Just remember that the out-of-pocket costs you pay for these services may depend on whether the provider belongs to your network. Keep these costs in mind when you are budgeting for your baby.

During this time, you may also want to consider increasing your life insurance to provide for the future needs of the child in your absence.

After the Delivery

Congratulations! With your new baby on board, it's time to plan and save for the future. One way to make the most of your health benefits and to save on taxes is to contribute to a Flexible Spending Account (FSA) or Health Savings Account (HSA). These accounts can give you control over a portion of your family's health benefit dollars.

If you use an FSA, choose the amount you'd like to have taken from your paycheck before taxes and put it into an account for health care expenses. You can also create an HSA, or a tax-advantaged account which is designed for people with high-deductible health plans. Use the budget you've created to figure out how much money to contribute to your FSA or HSA. From braces to back-to-school checkups, accounts like these can help you finance some or all of your family's health care costs.

Still confused by this alphabet soup of acronyms? Click here to learn more about Making the Most of New Types of Health Plans. Once you've learned about the "Two Bs," you will be better prepared to bring home your baby.

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Baby-Proofing Your Health Care Benefits

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Bringing Home Baby: Making Good Benefits Choices

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