Hospital Indemnity Insurance for Pregnancy and Childbirth
Last updated August 11, 2025
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Becoming a parent can be one of life's most cherished events – but it can also come with expenses. In addition to diapers, clothes, strollers, and all the items a newborn needs, there are other costs. While medical insurance helps with medical expenses, hospital indemnity coverage pays a fixed benefit based on admission and days hospitalized, which can be used to help with any additional costs. This article answers a few key questions to help you decide if signing up for hospital indemnity insurance at work is worth it for you:
What is hospital indemnity insurance?
How can it help with medical costs during pregnancy and childbirth?
How do people get it?
What is hospital indemnity insurance, and how does it work?
It's insurance you can buy to supplement – but not replace – your primary medical insurance. It’s a type of supplemental insurance that complements your primary medical insurance during periods of hospitalization. Many employers offer this and other types of supplemental health insurance to help support their employees’ financial well-being.1
Other kinds of supplemental health insurance – including cancer, critical illness, and accident – typically pay benefits based on a specific covered illness or injury. A hospital indemnity plan works differently: it pays a fixed benefit for admission and days hospitalized and can be used to help at any cost. That can be especially helpful because hospitalization tends to be a disruptive event in people's lives, and costs for extra childcare, petcare, transportation, and help around the house can really add up. Expenses like these can impact family finances beyond any out-of-pocket medical costs you may have. A hospital indemnity plan can help with all those things. Premiums can be cost-effective – and claims tend to be straightforward, with benefits paid out quickly.
How a hospital indemnity plan helps cover childbirth costs
The majority of Americans may not have enough savings to cover unplanned medical bills.2 Hospital indemnity insurance is designed to help provide financial support for periods of hospitalization by paying benefits that can be used to cover unexpected costs that can occur with pregnancy and childbirth. Plans differ but may pay benefits for a number of childbirth-related items, such as:3
The mother’s hospital/ICU admission
Typically, up to 15 days of hospital confinement, for example, to care for a baby in a neonatal intensive care unit
Complications of pregnancy (to the same extent as other covered sicknesses) Even a birth without complications can leave you with significant medical bills. The average out-of-pocket cost for a natural birth is $2,655. The costs associated with a cesarean birth are even higher, averaging $3,214.4 Hospital indemnity coverage can help alleviate some of that financial strain, with benefits paid directly to you based on admission and days hospitalized. And, it helps give you the freedom to spend the money you receive to help cover any out-of-pocket costs, providing important financial support during your hospital stay in addition to your medical coverage. With stronger financial stability, you can focus your attention on more pressing matters, like enjoying your newborn.
How to get coverage
Some plans may have a waiting period before they pay benefits for birth-related hospitalizations, so the best time to consider purchasing this supplemental insurance coverage is before you become pregnant. That will help ensure that you and the baby are covered from the start for any issues.
When available, the best option for most people is to consider purchasing a plan through their employer. Since it's a guaranteed issue, you won't have to answer medical questions or be subjected to a medical exam. Workplace plans may also feature cost-effective group rates: premiums may be a fraction of the cost of regular medical coverage and can be conveniently deducted from your paycheck. Another perk is that these plans are typically portable, meaning you can take your coverage with you if you leave your job.