Rethink pregnancy cover in private health insurance – even if you want to start a family

Rethink pregnancy cover in private health insurance – even if you want to start a family

One of the many cons to convince young people to take private health insurance is to exploit their natural anxiety around pregnancy and childbirth.

If young people weren't fooled by the ads exhorting them to take out insurance before their 30th birthday, a topic I've written on previously, they'll often decide it's necessary when they're planning to start a family.

Pregnancy cover can add a significant cost to the average private health insurance policy. 

I'd like to challenge that. Pregnancy cover adds hugely to the cost of a health insurance policy and leaves people thousands of dollars out of pocket for the delivery – for care that is probably just as good in the public system.

Comparison site Canstar crunched the numbers for me to show how much pregnancy cover adds to cost of the average policy. As the table shows, using NSW figures as a reference, the dominant type of cover is a comprehensive plan that covers cardiac, hip/knee replacement and pregnancy/obstetrics, for an average $157 a month for a single. There are 70 policies like this, but the likelihood of you claiming on all three treatments is remote.

If you drop all three, you can save an whopping $76 a month by buying one of the 37 basic hospital policies. However, basic is the operative word here.

Bear in mind that it's not as simple as dropping particular treatments – you may be dropping other coverage as a result, because of the way the policies are designed with cross-subsidies between treatments. Private health insurance is not a la carte because it wouldn't be profitable if people could choose to insure only what they'll probably claim. It's more like a pay TV package where you might have to pay for movies in order to get sport.

The middle ground for a young person who wants quality cover is to drop pregnancy cover and hip/knee replacements but retain cardio – there are 28 policies like this and it's an average saving of $50 a month compared with full cover. That's $600 a year.

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Remember you generally need to have insurance with pregnancy cover for 12 months before you conceive – and that doesn't always happen on cue; you may be paying for it for several years beforehand, as well as the year of the pregnancy itself. You'll also need to budget for the out-of-pocket expenses of your hospital stay.

So what would you forgo by not having pregnancy cover?

Australia is not the United States and private health insurance is not a necessity. Health economists say private health insurance is worthwhile for people over the age of 60, and those who have chronic health problems. It's also worthwhile for high-income earners who would otherwise be paying extra tax in the form of Medicare Levy Surcharge – but you don't need pregnancy cover in your policy to satisfy the Tax Office.

One of the biggest reasons to get private cover is the lower waiting times for elective surgery. That doesn't apply to pregnancy and childbirth – no one is going to tell an expectant mother that they'll deliver her baby in two years' time because of a waiting list.

What private health insurance does offer pregnant mothers is access to the obstetrician of their choice rather than the doctor on duty, greater convenience with appointment times, and a private room.

For some people that's worthwhile. If you want those added extras and can afford it, fine.

Many first-time mothers find it reassuring to have that certainty and continuity of care at what can be a nerve-racking time.

It's a personal decision but it's worth talking to other mothers about their experiences. I had a friend who had her first baby in the private system and realised she'd paid about $5000, on top of her premiums, essentially for a fancier room. She cancelled her insurance and happily gave birth to her second and third babies in the public system.

My own experience is relevant too. I was living in San Francisco when I fell pregnant with twins in 2010. Naturally I had private health insurance because that's what you do in the US, unless you really, really can't.

Then we decided to return to Australia and flew home when I was seven months pregnant. By this stage I didn't have a choice but to use the public health system.

Before the birth, the main difference was that I wasn't seen immediately for my routine scans but had to sit in the waiting room for 45 minutes to an hour waiting for the public clinic. I could have chosen to see an obstetrician for my check-ups instead and Medicare would have subsidised the cost - this is an option whether you're going public or private for the birth itself and private health insurance generally wouldn't cover this cost anyway.

Later things became complicated. At 37 weeks the doctors decided, for a few reasons, they needed to book me in for a c-section. Soon after the birth my baby boy was diagnosed with a diaphragmatic hernia and was transferred to a major children's hospital to await surgery. My newborn daughter and I were transferred the next day to the public hospital adjoining the kids' hospital so we'd be nearby.

It was a traumatic time but the quality of care that my family and I received across all three hospitals was nothing short of excellent. Oh and they gave me a private room.

I didn't know it at the time, but the surgeon and the paediatrician who cared for my son both have great reputations and work in both public and private practice. I saw them privately for check-ups after we were discharged from hospital.

The public health system has many faults but it's good at dealing with issues that require urgent attention. My family is complete but if there were ever a next time, I'd be more than happy to go public again.

That's all well and good but what if you still want pregnancy cover? The table suggests that family starters who want the pregnancy cover can save a modest $14 a month by dropping the hip/knee replacement, but there are only seven policies that offer that.

Probably the biggest savings tip is that couples who want pregnancy cover are likely better off with two single policies – one with pregnancy cover and one without – rather than a couple policy, which is usually double the cost of a single one. Even the most involved father in the world doesn't need to be insured for pregnancy and childbirth.

Caitlin Fitzsimmons is the Money editor. She writes regular columns about money, work and life. You can find her on Facebook or Twitter.

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Chris Stapleton’s bold but simple plan: to put music first

Chris Stapleton’s bold but simple plan: to put music first

NASHVILLE, Tenn. — These last few years, Chris Stapleton is often surprised by early-morning texts of congratulations from his friends. Take, for instance, last week, when the Grammy Award nominations were announced.

“That’s how I usually find out. People go ‘Congratulations’ and I go ‘What for?’” Stapleton said. He eventually discovered that he was nominated for three awards, including best country album, best country song and best country solo performance. “That’s usually what happens to me because I usually don’t know what’s going on.”

Since his sensational debut solo album, “Traveller,” was released in 2015, he’s won two Grammy Awards and scores of Country Music Association and Academy of Country Music Awards. The album continued to dominate the country album sales chart this year and has been certified double platinum.

He released two new albums this year — the Grammy-nominated “From A Room: Volume 1,” which came out in May, and “From A Room: Volume 2,” which came out Dec. 1.

His success lies in his bold simplicity: His recordings are cut live in the studio with his band; his wife, Morgane, sings harmony; and his producer is Dave Cobb. Stapleton isn’t verbose and neither are his lyrics, so it’s no surprise that everyone from Adele to Luke Bryan has recorded his songs. “Either Way,” which is nominated for best country solo performance, is literally his voice and a guitar.

“I think simple is harder to do than making overly complicated things,” Stapleton said. “Much in the way that I think lyrically in songwriting less words can mean more, the same can be true of music. If you can, for lack of a better term, sell a song without putting in extraneous instrumentation ... then that’s what serves the song the best.”

His touring is an extension of the idea of putting the music first. On his arena tour this year, he plays on a stage shaped like a half-circle band shell with lights. “While it looks like some science fiction piece, it’s a giant diffuser that controls frequency and stage volume,” Stapleton explains.

He doesn’t use in-ear monitors, those ear buds that allow artists to hear the music, preferring monitors placed on the stage; the stage allows him to better project his music to the seats in the back of the arena.

“I am not trying to make the biggest, most elaborate, pyrotechnic show,” Stapleton said. “I am trying to make the show that sounds the best, or best represents what we do onstage. It’s all from a sound perspective for me and then the visual has to fall in line.”

Singer-songwriter Kendall Marvel met Stapleton 15 years ago, back when the Kentucky-bred Stapleton was a clean-shaven new songwriter with a short, flattop haircut. They have written some 60 songs together, including songs cut by Blake Shelton, Lee Ann Womack and Josh Turner.

Marvel, who co-wrote “Either Way” as well as two other songs on Stapleton’s “From A Room: Volume 2,” said the husband-and-wife harmony is key to their music. Morgane Stapleton, who is also a songwriter, adds just the right touch of sweetness and softness to his volume and range.

“When you take her out of the equation, he would not be Chris Stapleton,” Marvel said. “She is to him and his guitar playing what harmonica player Mickey Raphael is to Willie Nelson.”

Stapleton gives a lot of credit to his wife for knowing all the songs in his catalog and picking songs that fans can connect to, like “Broken Halos,” another Grammy-nominated song.

That song, which talks about not always understanding why loss happens, has become a tender, comforting moment for many fans, especially after the mass shooting at a country music festival in Las Vegas earlier this year. Stapleton said he wants his fans to attach meaning to his songs that he didn’t always intend when he wrote them.

“I want them to have ownership in it because they do,” Stapleton said. “The songs don’t really mean as much without them and without people listening to them and investing in them.”

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Insurance ruling could threaten motorsport in Europe

Insurance ruling could threaten motorsport in Europe

The High Court of England and Wales has issued a ruling about mandating car insurance that, if taken literally -- and that's kind of what laws are, right? -- could threaten motorsports in Europe.

In other words, get insured or get off the road ... and the racetrack.

According to a report on the classic car website Hemmings Daily, The High Court, in its ruling stated that any use of a motor vehicle, whether on or off public roads, requires motor vehicle insurance -- a ruling consistent with the European Court of Justice’s September 2014 verdict in the case of Vnuk v. Triglav, which found that the EU’s 2009 Motor Insurance Directive did not clearly distinguish between on-road and off-road use.

So, per the ruling, any motor vehicle used for transportation on the roads or racing on a circuit must be insured.

The U.K.-based Motorsport Industry Association earlier this year argued that the Vnuk ruling poses a significant threat to all European motorsports not only because on-track crashes will be subject to the same police investigations as on-road crashes, but also because insurance for race cars either doesn’t exist throughout the European Union or exists at rates of up to 20 times that of road-car insurance coverage.

One interpretation of the ruling would mean that an on-track crash during a race at, say, Silverstone, would be subject to a possible police investigation, just like any other crash on the local interstate. (We don't expect the police to stop a race and throw yellow tape all over a crash scene during a race, but it might be fun to watch).

The U.K., while in the process of breaking away from the European Union, is still under the laws of the European Union. Those laws, according to the Hemmings report, include the Motor Insurance Directive.

In October, the FIA (governing body for much of European racing, including Formula 1, the World Endurance Championship and World Rally Championship, among others) said in a statement, "This is of course a matter that we have been following closely since the ECJ (European Court of Justice) ruling on Vnuk. The public consultation being conducted by the European Commission covers a wider scope than only motorsport.

"The questions being asked in connection with the scope of the Motor Insurance Directive could indeed have a potential impact on motorsport and the FIA. The FIA shall of course seek to preserve motorsport from any negative consequences of proposed amendments to the motor insurance directive."

However, the High Court did concede that the motorsports angle to the ruling was an unexpected consequence, and it recommended that the European Commission should add language to the Motor Insurance Directive stipulating that its scope applies only to on-road (non-racing) vehicle usage.

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Health insurance for kids, college football, bilingual education, Code Talkers, net neutrality

Health insurance for kids, college football, bilingual education, Code Talkers, net neutrality

Since 1997, millions of American children of low-income working families have received basic health care services in this country through the highly successful Children's Health Insurance Program. In September, Congress failed to reauthorize funding for the CHIP program, putting health care services at risk for these millions of children.

State officials in Texas, along with other states, are now looking for short-term federal funding to delay the loss of the CHIP program for a month or two, but what is really needed is for Congress to vote to reauthorize the program for the next five years.

Health care for children and pregnant women is vital to the future of our country and is an issue long supported by both Democrats and Republicans. Reauthorization of the CHIP program is as important an issue as any facing Congress at the current time. It should be given priority and voted on immediately.

Texas Sens. John Cornyn and Ted Cruz and all Texas members of the House of Representatives need to step up and vote to reauthorize federal funding for CHIP now.

Jean Richards,  Richardson

Take care of the kids

I find it so ironic. Texas lawmakers go to the mats continually in state and federal courts to ensure that the rights of unborn children are protected; however, when those children become Texans, those same lawmakers fail to protect them. Funding for Child Protective Services, CHIP and other programs designed to protect children isn't a top priority, but bathrooms are. So hypocritical and such a travesty.

Ann Thornton, East Dallas

College football's magic number

Re: "Four is the magic number for CFP," Tim Cowlishaw column, Wednesday SportsDay.

I respectfully disagree with Cowlishaw's statement, "The four-team College Football Playoff still works for me, works for you, and ... ." An eight-team playoff is desperately needed, and here is why. 

Fine lines separate the top 10 college football teams in the nation, and every year a committee has to decide based on the body of work who gets in and who is left out. Adding four more teams will help to ensure a deserving team does not get left out. Plus, as we have seen in the past week, the old cliche of "on any given day, anybody can beat anybody" still holds true. 

And, as Cowlishaw points out, there will still be a degree of "controversy and discussion." Unlike March Madness where a No. 16 seed has never beaten a No. 1 seed, I believe we could very easily see a No. 8 beat a No. 1 in football. What is wrong with one more week of high stakes college football playoff excitement?

Jeff Foster, Carrollton

Hablar español y inglés

Re: "Bilingual Teacher Shortage -- UNT-Dallas, Sunset High teaming up on critical need," Wednesday Editorials.

The Dallas Morning News is lauding UNT-Dallas' attempts to encourage bilingual students to teach. Between one-fourth and one-third  of Texans speak Spanish already, and it is expected that number will grow. With the number of Spanish speakers we have, why not raise Texans who are bilingual? 

Look at the advantages. Bilingualism is a major asset for an individual trying to do business in a global society. According to Wikipedia, Spanish is the second most spoken language in the world. (English is third.) With Spanish ranking so high, it's the perfect language to teach our young people. 

Additionally, bilingualism has been shown to improve cognitive ability. People who are bilingual are less likely to suffer from dementia or Alzheimer's disease because their brains can find new pathways when one is damaged.

The United States is one of the few developed countries that is basically monolingual. Why not allow Texas to be in the forefront for a change? Teach all of our students a second language. Instead of separating out the non-English population, we will be building inclusiveness and camaraderie in our entire population.

Judy Pelowski, Red Oak

Talking in code

President Donald Trump is being roundly criticized because he does not speak the code of modern Democrat code talkers. In his speech he was very gracious and complimentary to the Navajo Code Talkers and their role in World War II. Seriously. Listen to it online.

Unfortunately, he mentioned that he calls Sen. Elizabeth Warren, D-Mass., "Pocahontas." Had he spoken the Democratic code, he would have made reference to Warren's despicable act of "cultural appropriation," stated that she was unfit to hold public office and promised to stand with Native Americans everywhere in condemning her heinous act. 

Cultural appropriation, in Democratic circles, is so horrific that little children are condemned for dressing as Native Americans on Halloween. Warren has redeemed herself and now, as a Democrat, condemns "cultural appropriation." She falsely claimed to be a Native American to avoid the racial discrimination practiced against people of her skin color that exists in every branch of government -- discrimination she now endorses and calls affirmative action. But it's all right because she hates Trump even more than she hates haters.

Mac Smith, North Dallas

Gratitude for Navajo service

Years ago I had the good fortune to meet two Navajo Code Talkers in person and to hear their story from start to finish. It is an amazing story. We should show our utmost gratitude for their service and apply sensitivity in knowing the full truth.

The full truth is that as children they were taken from their parents to Bureau of Indian Affairs schools and punished for speaking the Navajo language. Signs outside the school read, "Tradition is the enemy of progress."

It turns out that tradition has its merits. For the Code Talkers to lend their sacred language to saving lives in World War II demands our respect on many levels. That is all that needs to be said.

Laray Polk, Dallas

Keys to the internet

Re: "What to do about net neutrality? -- Sorry, but the internet has already lost its neutrality, says Megan McArdle," Monday Viewpoints.

 McArdle equates business decisions by hosting companies to the abolition of net neutrality. If a hosting company decides not to host your website for any reason, that is a business decision and you take your business elsewhere. This was the case for the white supremacist website The Daily Stormer. Hosting companies take on risk when they host sites like this, which are targets for hackers, activists, etc. But it is not like gutting net neutrality. 

Net neutrality means when you are on the internet, all traffic to your computer or TV will be treated the same. Ajit Pai, chairman of the Federal Communications Commission, is about to hand four large companies the keys to the internet, where they can in effect hold websites hostage, favoring some sites over others (especially their own content sites). 

Talk about business uncertainty. If your business plan depends on reaching consumers, then you are faced with paying surcharges to go through these internet service providers. How does that help consumers or businesses? I see it as a way to kill Netflix and other streaming companies that are successfully chipping away at Verizon's and Comcast's business model.

Cable TV cord-cutting strategies are at risk if Pai gets his way.

Doloris Lajoie, Plano

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Cancer survivor Stephanie Wiki promotes urges Palmerston North audience to check health cover

Cancer survivor Stephanie Wiki promotes urges Palmerston North audience to check health cover

Stephanie Wiki talks about her battle with breast cancer.

Within the space of five years, Stephanie Wiki dealt with breast cancer, earthquakes, moving country, separating from her husband, and the death of her best friend.

But she still has a smile on her face and says it's what you do in those situations that determines who you are.

Wiki spoke to Palmerston North City Council workers on Tuesday about her battle with breast cancer and the importance of having health insurance in the event of a major health issue.

She discovered a lump in her breast on February 19, 2011, at just 40 years old.

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She was booked in for a mammogram at 2pm on February 22, 2011, in Christchurch, but when the earthquake struck her priorities had to shift.

She flew out of Christchurch to Auckland, managing to swap her mammogram appointment to Auckland as well, and once she arrived in the big smoke she was told to not go home.

"I had to have a mastectomy and go on to have chemotherapy after that."

Wiki also had to have reconstruction surgery and after some time flying between cities, her family ended up moving up to Auckland.

Having worked as an insurance broker for most of her life, she has had plenty of conversations about health cover and non-funded drugs, but never thought she would be the patient.

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She said it would have been a very different journey for her had she not had her health cover in place.

"I would not have been able to have both breasts removed, my reconstruction would have been different. I had a lot more options."

Wiki said she didn't think a lot of people knew there was health insurance for non-funded medication.

She encouraged people to review their healthcare policies, but her main advice was for people to enjoy life.

"Live every day and live it to the fullest."

 - Stuff

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