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Switching Jobs While Pregnant & Insurance Implications

If you decide to switch jobs while you are pregnant, it could lead to some complications with your insurance coverage. A new employer's policy may force you to wait for a specified period of time before claiming benefits. This could compromise your ability to pay for needed tests and treatments. Many insurance plans make you wait a year before qualifying for maternity coverage.

  1. New Company Insurance

    • When you switch jobs, you may have to wait a certain amount of time before you can be covered by your new company's insurance plan. This could be problematic when you are pregnant because it may compromise your ability to pay for needed tests and treatments. According to the American Pregnancy Association, the estimated cost of a delivery is $6,000 to $8,000. If you have to pay for this and other related costs out of your own pocket, it can be a major financial burden.

    Maternity Coverage

    • Even if your new employer allows you to be covered by an insurance plan right away, you may not be able to get maternity coverage immediately. According to Ellen Galinsky, president of the Families and Work Institute, most insurance plans make you wait at least one year before you can get such coverage. This means that even if you had medical insurance, it would not provide any benefits for the delivery of the baby. It could provide help with complications of labor, but it would not pay the major costs associated with delivering the baby.

    COBRA Coverage

    • When you switch employers, you may want to stick with your existing insurance plan at least until after the baby is born. Thanks to the Consolidated Omnibus Budget Reconciliation Act (COBRA), you can keep your same insurance plan from your previous employer for up to 18 months after leaving. This will allow you to keep the maternity coverage that you already have with your current insurance company and then switch to your new insurance company when it is convenient for you. According to the United States Department of Labor, this coverage is only required for employers with 20 or more employees. Therefore, if you work for a smaller employee, this may not be an option.

    Considerations

    • When you switch employers and decide to use COBRA coverage, it will likely be more expensive than what you were used to with your old employer. In most cases, your employer will pay a portion of the premium for you each month. When you are no longer employed with your old employer, you will be responsible for paying the entire premium yourself. This means that until the baby is born, your health insurance likely will be more expensive than what you are used to.

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