Isn't That Rich Podcast

Having a baby is one of life’s most exciting, heartwarming, and—let’s be honest—expensive experiences. From prenatal care to delivery room fees, tiny hospital bracelets to giant medical bills, the cost of bringing a little human into the world can be staggering. But don’t worry! We sat down with brand-new mom, Shannyn Olson, to break down the actual costs of childbirth, what parents need to plan for, and a few unexpected bills that might show up in your mailbox.

Welcome to Parenthood—Here’s Your Bill!

Shannyn and her husband, Brandon, recently welcomed their baby boy, Locke, into the world, and while they were prepared for sleepless nights and endless diapers, they were not prepared for the mountain of hospital bills that followed. And let’s just say, Locke’s first piece of mail was...a medical bill. Welcome to America, kid!

While the joys of parenting are priceless, the price tag on childbirth definitely isn’t. Whether you’re considering starting a family or just curious about the real cost of having a baby, let’s break it all down—from prenatal visits to postnatal surprises.

The Big Picture: Insurance, Bills, and Unexpected Costs

Step 1: Understanding Your Insurance

Before even thinking about baby names, take a serious look at your health insurance. If you’re employed, compare your options during open enrollment. Does it make sense for you and your partner to stay on separate plans? Will your deductible reset in January? What’s your out-of-pocket max? Because let’s be real—there’s a 99% chance you’ll hit it the year you give birth.

One thing Shannyn wishes she had researched earlier? Adding the baby to insurance. Once Locke was born, they had only 30 days to enroll him in a plan. That meant a flurry of research and paperwork right after giving birth (which, spoiler alert, is not ideal when you’re running on two hours of sleep and a steady diet of cold coffee).

Step 2: Prenatal Care – The Bills Start Early

Pregnancy is beautiful, but it also comes with a lot of doctor’s appointments. And, surprise! Those visits aren’t free. Here’s a rough breakdown of what to expect:

• OBGYN Visits: Around $300-$400 per visit, depending on insurance.

• Routine Lab Work & Genetic Testing: Additional costs on top of regular visits.

• Ultrasounds: Typically $200-$1,000 each, depending on insurance coverage.

Since Shannyn had a geriatric pregnancy (which, by the way, is a super rude term for being over 35), she had extra checkups to monitor her health. This meant even more bills. Oh, and if anything unexpected happens—like developing high blood pressure—prepare for additional tests and weekly visits.

Step 3: The Hospital Stay – The Big Ticket Item

Shannyn was induced at 37 weeks due to hypertension, which meant extra costs right from the start. The hospital stay alone totaled $43,000. Yep, you read that right. $43,000 for five days. Luckily, thanks to insurance, she only paid $3,100 out of pocket, but the sticker shock was real.

Some eye-opening hospital costs:

• Labor & Delivery Room: $17,000

• Room & Board for Mom: $16,500

• Nursery Stay for Baby: $2,400 per day

• Epidural (Anesthesia): $3,370

• Postpartum Medications & Labs: $800-$2,000

Step 4: Surprise! The Bills Don’t Stop After Birth

Just when you think you're done, postpartum care sneaks up on you. Shannyn’s six-week postpartum visit was covered, but at 10 weeks, she experienced a postpartum hemorrhage. Cue an ambulance ride, emergency surgery, and another hospital stay.

That unexpected trip? $61,000. Thankfully, since she had already hit her out-of-pocket max, she paid $0.

And don’t forget about baby’s checkups! Locke had visits at:

• 1 week

• 2 weeks

• 1 month

• 2 months

• 4 months

• (Up next: 6 months!)

Each pediatric visit cost around $300 but was covered by insurance. However, one unplanned doctor visit due to a slight fever cost $1,100 out of pocket—a good reminder that even with great insurance, baby costs add up fast.

How to Financially Prepare for a Baby

So, how do you plan for these costs without feeling like you need to sell a kidney? Here’s what Shannyn and Brandon did:

1. Understand insurance coverage early. Research your policy’s deductibles, copays, and out-of-pocket max. Find out what’s covered for prenatal care, delivery, and postnatal visits. If your employer offers different plan options, compare them to see which one best suits your family’s needs.

2. Create a baby savings fund. Start saving as soon as you begin family planning. Set aside money monthly to cover unexpected costs like emergency care, extra doctor visits, or surprise hospital stays. Aim for at least $5,000-$10,000 in a dedicated emergency fund.

3. Open a 529 College Savings Plan. Even before your baby is born, you can open a 529 plan in your name and later transfer it to your child. This tax-advantaged account can help you save for future education costs, whether it’s college, trade school, or private school tuition.

4. Look into Dependent Care Flexible Spending Accounts (FSA). Some employers offer these accounts, allowing you to set aside pre-tax money for daycare expenses. This can help offset the high cost of childcare, which can easily reach $1,000-$2,000 per month.

5. Plan for maternity and paternity leave. Not all employers offer paid leave, so it’s important to plan for lost income. Research your employer’s policy, and if unpaid leave is in the picture, start budgeting to cover those months without a paycheck.

6. Check hospital bills for errors. Mistakes happen, and hospitals often charge for things that never actually happened. Always ask for an itemized bill and double-check charges. You can even negotiate certain fees or set up a payment plan if needed.

Recognizing Different Financial Situations

Shannyn acknowledged that every family's financial journey is different. She and her family were fortunate to be in a position where they could plan ahead and manage the costs, but she recognized that this isn’t the case for everyone. Financial circumstances vary, and it's important to explore all available resources, from employer benefits to hospital payment plans, to help manage expenses. The key takeaway is to prepare as much as possible based on your own situation and seek out support where needed.

The Bottom Line: Was It Worth It?

Absolutely. Despite the mountain of medical bills, sleepless nights, and endless diaper changes, every smile from Locke makes it all worth it. But the key takeaway? Prepare early, know your insurance inside and out, and set aside money for the unexpected.

Bringing a baby into the world is one of life’s greatest joys, but it’s also a major financial event. The more you plan ahead, the less stress you’ll have when your newborn arrives. And trust us, you’ll have plenty to think about without worrying about surprise medical bills!

We hope this breakdown helps new and expecting parents feel a little more prepared for the financial realities of having a baby. If you’ve been through it, what surprised you the most about the cost of childbirth? Let us know in the comments!

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