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Supplemental Income: Make Thousands with Insurance by Delivering at the Hospital

Kudos to those who deliver at home naturally. Unfortunately, this moneymaker won’t apply.

The Premise: purchase supplemental insurance policies and earn money when giving birth to a baby at the hospital.

My Experience: I paid a total $271.60 a month for six different supplemental health insurance policies and received total payouts of $12,704.13 when I delivered my baby. Yes, I earned more than $12,000. Do I have your attention?

 

This is something every father- and mother-to-be should know about in order to take advantage of great supplemental health insurance programs. There  are more options than the companies I used, but this is my experience.

How it Works

Step 1: Research and sign up for supplemental health insurance policies. They are not a replacement for regular health insurance. Supplemental policies are in addition to health insurance.

  • Contact insurance providers that operate in your state and ask for information about supplemental policies that pay you when you are hospitalized overnight and/or during recovery in the hospital. While these policies pay out for overnight hospitalizations from heart surgery to kidney stones, I use them specifically for childbirth.
  • Examples include: Hospital Indemnity, Hospital Confinement Indemnity and Hospital Daily Benefit Rider, etc.
  • Look for insurance agents or brokers who can offer information on policies from several companies.
  • Educate yourself on the limitations and payout factors in the policies.
  • Read the fine print.
  • Be honest with the agent and ask about any factors that would prevent the company from paying out for a delivery with that policy. Ask the agent to clarify anything you don’t understand.

Step 2: Ask questions. Here are some examples:

  • How long do you have to pay monthly premiums before making a claim? Many policies require you to pay monthly premiums for 10 or more months before making a claim, so it isn’t likely a pregnant woman can get a policy.
  • What factors influence the insurance payout?
  • Does the policy pay out for a single night in the hospital? If the answer is yes, ask for a second policy that will pay out for additional recovery days. Consider an additional policy with a “Hospital Daily Benefit Rider.”

Step 3: Do the math. Calculate each policy’s break-even point so you know if it is profitable on your delivery timeline. Example: One policy’s monthly premium is $70. It pays $5,000 in the event of a c-section delivery and 3 night hospital recovery. I gave birth to two children 24 months apart. After 71 months, the payout equals the premium payments (5 years & 11 months). Any delivery or hospitalization prior to that makes a profit.

  •  My policies have break-even points that range from 30 months to 71 months. Newer policies may not be as profitable.
  • Most policies require a premium for a minimum of 10 months or more before making a claim. That investment is required.

Step 4: Sign up. Choose the policies that best fit your needs.

  • The policyholder must be the woman who will carry and deliver the baby.
  • I purchased six supplemental health insurance policies (years ago) with four different insurance companies:
    • Aflac — 2 policies
    • Allstate – 1 policy
    • Assurity – 1 policy
    • Conseco – 2 policies

Step 5: Pay monthly premiums on time, every month!

  • There can be no gaps in payment or late payment. This method isn’t right for you if you cannot afford the premiums. I pay $271.60/month for six policies.

Step 6: Deliver your baby in a hospital or location as required by insurance policies.

  • Check policies to be sure the delivery location qualifies for making a claim.
  • Be admitted and stay overnight!
  • If payout amounts are altered by number of recovery days, make sure you know the financial implications before you decide to stay or go home.

 Step 7: Submit claims to the insurance companies.

  • Obtain claim forms from the insurance companies. Do this before delivery. Each company’s claim form looks a little different.
  • Once the hospital bill arrives, set aside thirty minutes to an hour to make copies of the bill and fill out claim forms. Submit by fax or mail. Remember to send in all requested documentation.
  • Request a copy of the bill from the hospital about a week after your stay.

Step 8: Receive Payment.

  • The insurance companies send payment directly to the policyholder.
  • Expecting hospitalizations or additional pregnancies? Re-invest some of the payout into monthly premiums.

It has been such a blessing to have this added financial security for my growing family.

This has been a guest post by Bonnie from Mesa, AZ
Find out more about the KCL Contributor Network!

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60 thoughts on “Supplemental Income: Make Thousands with Insurance by Delivering at the Hospital”

  1. Really? says:

    This is disturbing. The legality might not necessarily be an issue, but the ethics is. And basically “teaching” others to pull off this “get rich quick scheme”? Why not just do a simple pyramid scheme?

    I’m sure your karma is going to come back and get you…that is if the insurance companies don’t do it first.

  2. Rapunzel says:

    How many months did you pay $271.60?
    Did you have to pay any deductibles on top of that premium? before the benefit kicked in?
    Also, in step 6 “before you decide to stay or go home” I never felt like that was my decision…it was always the doctor’s call…and most likely my health insurance only covers a certain amount of days as well. I don’t choose how long.

  3. It is more like life insurnce than health insurance. You can have as many as you want, as long as you pay each premium, they will pay the predetermined benefit for each claim.

  4. Ihaveanangel04 says:

    Im sure that it is perfectly legal to have one of these supplement policies……..but 6???  That seems like the system is being worked over in the wrong way.  Do each of the 6 insurance policy providers know about the other ones???  How are people getting away with this kind of manipulation??  

  5. Coxter2 says:

    You might want to get your info correct. It looks like Aflac does still offer the pregnancy coverage. Just not as individual plans, maternity coverage is only offered through your employer.

  6. For those of you with questions about this idea, take it from InsuranceAgents.com; companies promote this as a way of covering costs associated with pregnancy. http://www.insuranceagents.com/supplemental-expectant.html

  7. Karen Hicks says:

    We had a policy very similar to this until recently, when we just decided to drop it. Ours was just an accident policy though, through Combined Insurance. They are sort of Aflac. They only pay if you are injured and have to seek medical treatment. It was not expensive at all, maybe $13 per month. It came in really handy when our kids were small, we had one accident prone daredevil at home, so we were constantly going in for stitches, broken bones, etc. we did have a separate medical insurance policy, that was in no way connected to this policy. I did not have an guilt or anything over making a claim for that policy. That was why I paid my premium every month. But after a stretch of about 2 years with zero claims, we just decided it was time to drop it.    I would never have thought to use a policy like  for childbirth, but I can see why they are maybe discontinuing them now. Sure, it may be legal, but it sounds like an awful lot of trouble to go through…….

    • Rehmah says:

      FYI: Just some info. on the cheapest way to give birth. I have given birth in the hospital 5 times and with my first child, we were self pay. My midwife/pre-natal care, lab bills and short stay (24 hr. in hospital) cost me $4500-5000. That was ten years ago. I had a natural birth in the natural birthing center in the hospital with no drugs being administered. This is the cheapest way I know of without insurance. I am seven months pregnant now and self pay again. My midwife/pre-natal care bill is about $3100. My lab bills were $800-1000 and the short stay bill hopefully will not be over $2000 (I am currently waiting for hospital to get back with me on this) My total this time will be closer to $6000. If I had known about the supplemental insurance and how to implement it, you can bet your…well, I would have purchased it.

  8. Windy Moore Balinger says:

    I am a benefits consultant that helps individuals and companies obtain supplemental insurance. There are are a lot of guidelines that need to be met. Contact me if you would like more information.

  9. Courtney says:

    While this may not “technically” be illegal…this too me seems immoral and like fraud. My husband and I work very hard to provide for our two children and I have the option of insurance through my work, however I cannot afford it. It is because of people like this that insurance has become soo expensive. I can see one policy as back up for the situations that cannot be for seen. anyone who does this with several policies should be ashamed of themselves for doing so.

  10. kudos to the woman that figured all this out- i am pretty sure that’s it’s all legal or they would not have paid it to her- but i agree with misty- something sounds fishy, does the insurance companies know about the other policies that she has? perhaps it doesn’t matter- these sorta policies are designed to help with financial costs of hospital stays- great idea for someone WITHOUT healthy insurance because a night or two in the hospital is expensive!

    • Christine says:

       “It’s legal or they would not have paid it to her”
      The IRS is paying to those illegally filing returns, so that logic doesn’t quite work. I doubt if the insurance company knew all the details, they’d still pay.

  11. Fourniertrio says:

    This HAS to be insurance fraud and I am terribly disappointed that it was even posted on here. This is WELL BEYOND Krazy couponing. It is just wrong.

  12. I had one policy through aflac for myself knowing my company did not pay me anything during maternity leave, so I got a whopping $2800 from Aflac after having my c-section, but that did not come close to what would have made if I was able to keep working………….so unless you are a stay at home mom it probably really does not benefit anyone!!  And yes I agree totally with some previous posts that this is just wasteful and probably the reason insurance costs so damn much. 

  13. SRE says:

    Isn’t this fraud?

  14. Ihaveanangel04 says:

    Insurance fraud???  Immoral??? Unethical???  Cheating???

  15. Nvespinosa says:

    Can some one explain the math break down part

    • If you only have one premium and it’s $70 a month, after 5 years and 11 months you’re going to pay almost $5,000. So, it’s not worth it for you to get the insurance if you’re not going to have a baby within the next 6 years because you’re going to be paying as much in as you’d get back -you’d break even.

      She had two children, 2 years apart; factor in the 9 months of pregnancy for both, and you have 3 1/2 years of paying $70 a month. That’s $1260 that she paid out and she got back $10,000.

      So when you plan out your pregnancy with this insurance, you need to find out how much you’re going to be paying per month and see if you’re going to be making a profit. In this case, she made a profit of $8,740. That’s not counting the other insurance companies she uses.

  16. Nvespinosa says:

    Im 6 months pregant it wont work for me?

  17. Clipway says:

    Aflac rep was at my co this week and I asked about this type of policy for another viable reason. She said it will soon be discontinued  and is in many states already becuase of this type of use. It is taken out, used for the pregnacy, canceled, re purchased, canced after baby, and  so on until not need again. I could still get it in my state thru my co for now, but not much longer. People might have acually needed this and it will no longet be available because of this type of use.

  18. Jordan says:

    My husband works in insurance and even he said that this sounds like fraud.  One might be able to work the system enough to “make money.” But that doesn’t mean that one should.  What ever happened to just saving money??  I would rather put money away for the birth of my child than pay some insurance company extra premiums ahead of time.  Insurance is expensive and we shouldn’t make it harder for those less fortunate to get insurance.

  19. Christine says:

    This seems so crooked it’s not even funny.

    • Regina_sprinkleparker says:

      Supplemental insurance is peace of mind assurance that you will be paid cash for an event. The hospital portion generally covers hospitalization for admission as well depending on each agency. (like appendicitis, heart attack etc…). It’s legal and you do not have to claim the money. People get these to pay the rent, etc so you can recover. I do sell AFLAC. It has NOTHING to do with health insurance as it is supplemental… Ex: AFLAC accident policy paid $24,970 last year for my 24 yr old stepdaughter in a motorcycle accident. She was laid up 8 weeks before going home to further recover. She was unable to work. She made $18k/yr as a hair stylist. We paid off her car and student lians so she could recover! A year later she was back in an apt and we were able to get her a washer and dryer and xbox, etc…. It was worth it and is surprisingly affordable. I’m going to have to use AFLAC for ins for me and my small kids when my hubby retires until I can afford a family insurance policy for traditional health coverage. Better than nothing for us.

  20. Melissamobley says:

    Wow! Cannot believe you posted this! I can see one supplemental policy for emergencies but 6! This is why I, as a 13 year veteran of the nursing work force get screwed over and can’t get decent insurance for myself and my family. 

  21. becca says:

    If I have Medicaid as my insurance while I’m pregnant, can I still get supplemental insurance? 

    • Anonymous says:

      Oh My!

    • lnmnm says:

      Uh, how the heck are you getting Medicaid if you could afford the premiums to purchase supplemental insurance?

    • Gina says:

      Becca, you aren’t paying anything out of pocket to have your baby as it is. Just let this one go, girl. 

      I doubt you could have Medicaid and any other private insurance at the same time though. Medicaid is for people who cannot afford to have health insurance any other way.

    • THE WHOLE REASON BEHIND MEDICAID IS BECAUSE YOU ARE UNABLE TO AFFORD HEALTH INSURANCE FOR YOURSELF. IF YOU CAN AFFORD SUPPLEMENTAL INSURANCE THE REST OF US SHOULD NOT BE FOOTING THE BILL FOR YOUR HEALTH CARE.

    • Guest says:

      I would be careful about doing that.  I am a social worker and I work with Medicaid often, and this may not be the best option for you.  Medicaid is means-tested, and the payout could make you lose your Medicaid because it would count as additional assets.  While you may be fine once the money is spent, you’d have to go through the whole process of applying again, which is a ton of paperwork and a long time to wait.  If you have Medicaid, you might qualify for other assistance- you might even get more assistance for a longer period of time.  Your local Pregnancy Care Center would probably be a good place to look for such information.

  22. Laura says:

    I may not be following this correctly, but are you saying you made money off of these insurance options? If so, I have to disagree with this method. Isn’t something like this part of the reason why health care costs and insurance costs are out of control?

    • Anonymous says:

      I am with you Laura.  I have to say I am pretty disappointed that KCL would even post this.  My husband is self-employed and we can’t even afford regular health insurance let alone  a supplemental one.  It is because of this type of usage the premiums are so high.

      • My husband and I are also self-employed. We have two children, and with my medical past (skin cancer, precancerous colon polyps, chronic knee problem) we wouldn’t be able to get insurance for under $500 a month. I completely agree that this sort of usage is why my family and I can’t afford the comfort of health insurance.

        • Angela B. says:

          I am with you on health costs, premiums, and all of that, but I don’t think you all understand. These supplemental policies are not health insurance. They do not pay for your treatment when you go to the doctor, hospital, etc. Physicians, hospital, etc. do not file claims with them. If they were to ask you if you have health insurance and you only had these policies, you would honestly and truthfully say “no.”  Supplemental policies like these are like life insurance policies – they pay you when something in particular happens. And they pay the money to you to do whatever you want with it – pay medical bills, buy groceries, go shopping, it is your decision.  My premium on my hospitalization policy is $70 per month and covers me, my husband, and our three boys, whereas our health insurance is of course much more than that.  These policies have nothing to do with health insurance at all.

          • I understand perfectly well what supplemental insurance is. As a certified pharmacy technician and a certified medical transcriptionist, I deal with this these types of supplemental policies all the time. They most certainly do have a lot to do with regular insurance costs, and this type of usage does affect cost of regular insurance policies. Most of these companies that offer supplemental policies also offer regular insurance. So when you have people using supplemental policies in such a manner, it inflates the cost for those people who are not using the system in a manner that was never intended in the first place. These policies are meant for accidents or extreme circumstances, such as the motorcycle accident described in another comment. I detest seeing people take advantage of things, and this is definitely something people are taking advantage of badly.

        • Jenny, these are supplemental insurance policies that have absolutely zero to do with regular health care insurance or premiums.

          • I respectfully disagree, given I have worked with insurance policies and supplemental policies for years.

            • Angela B. says:

              So if I buy a life insurance policy, or disability insurance in case I ever break both of my legs and can’t work, then somehow your health insurance premiums go up? You are just plain wrong. And I don’t work with insurance companies, I work for an insurance company. These have nothing to do with Aetna, United, BCBS, etc. health insurance policy premiums. Nothing at all.

    • Anonymous says:

      UnBeLievAblE!  I am blessed to have good insurance, because my husband’s company pays thousands of dollars out each month for it.  This just seems so ridiculous…don’t understand how it could be legal.  Good night.  Guess I shoulda planned to have a baby every year from the time I was 18…I’d be rolling in cash now, huh?  Of course, my money-making family would suffer from my greediness, but oh, well…I’d have the cash!

  23. Paola says:

    I just had a baby almost 3 months back and our total costs (C section, 5-day hospital stay, and also including all OBGYN visits during pregnancy and well-baby visits so far) have been $265 (yeah, my husband has GREAT insurance through his employer!). We paid a little over $50/mo for my husband and myself, and then after our daughter was born our monthly payments are a little over $150. Given these facts, would supplemental insurance be something beneficial for me, or is it more for people who don’t have adequate health insurance coverage?

  24. guest says:

    Also, families need to take into account whether they can afford the premium if it takes longer than expected to get pregnant than they have planned. I also know of some companies (Aflac being one of them) that are discontinuing some of their policies like this. It is a great help to look into though!

  25. Savnlf1980 says:

    This is a great idea.  I just signed up for the 2 Aflac policies through work knowing that I want to have a baby within the next year and it would make me a few thousand dollars when I do.  I hadn’t thought to look into the others.  Since I’m not pregnant yet, I may still have time to get them since most want you to have them 10 months before you can use them.

  26. Christa says:

    And how is this not insurance fraud??  I’m all about saving money but this just seems very wrong to me.  It’s probably because of people like you trying to “game” the system that make health insurance expensive for the rest of us!!

    • Anonymous says:

      I assure you insurance compaies are not going broke offering these policies. They actually bank on the fact that most people will buy them and not use them. I used to work for aflac. I can assure you they want you to use these policies and promote that they pay YOU. When your happy you tell others. Your way of thinking is similar to those who dont understand couponing and think we are ripping off the stores. I am not trying to  be rude, but you just have to educate yourself on the policies and how they work and some of them are not worth the premiums for the payout you may or may not use.

    • This is not standard health insurance. It is a supplemental policy that works totally different from standard health insurance. I have 3 policies through Aflac and was paid $3600 when i had my son 2 years ago. They have set payouts for every incident and it is just a matter of filling the paperwork, sending in doctor notes and they mail you a check.

  27. Jcm1907 says:

    i wish i found out about this before im 3 months pregnant.. :(

  28. Akelly2007 says:

    I wish I would have know about this I’m having my baby in 5 days! :)

  29. Pand5js says:

    well this would have been great to know 13 years ago..LOL  All done having kiddos here!

  30. Jenlt39 says:

    When you say you made over $12k, is this after your paid your insurance deductibles or before??

  31. LBjorn says:

    I don’t even know what supplemental insurance is.  I’m 8 months pregnant and expecting to pay a hefty bill.  I wish I could pay someone to figure this out for me!

    • Rehmah says:

       I’m 7 months pregnant with number 6 and I am self-pay. It sounds like it is too late for people like us to take advantage of this, but there is a program at the hospital called short stay for low-risk mothers who are planning on having a natural birth. I did this with my first child (10 years ago) and the short stay bill was $1400. You have to set this up BEFORE you are admitted to hospital. I am now self-pay again and I am trying to figure out what the short stay fee is this time. I am hoping it is still under 2k. I don’t know if this helps, but thought I would throw it out there.

  32. MonkeysMommy2008 says:

    I also made about $10,000 when I had my son (he was in the NICU for about a week, so obviously if I had the choice, I would have rather had him home than gotten the money).  Supplemental insurance is a must if you are going to have a baby in the hospital!!!

  33. Misty Will says:

    Is this legal? This sounds like insurance fraud. I will admit to being ignorant on ths subject of supplemental insurance policies. And I could be totally wrong. But this just sounds fishy to me.

    • Kelly Boak says:

      its a different policy than your insurance.  you pay them to help you out .  example, i broke my foot colonial paid for 300 a bone, 100 for my crutches, and 50 on my follow up care 
      they pay you.

    • Anonymous says:

      I used to work for aflac. These supplementals are actually known as indemnity policies at aflac. The pay you directly and the amounts paid really have nothing to do with what the actual bill from the provider is. They pay you a set amount based on the injury or type of visit. For instance, We have the aflac accident plan. (awesome especially if you have kids. ours pays for itself) It will pay $120 for a doctor visit in connection with a covered accident. So for example I hurt my back moving furniture, I go to the chiropractor (they usually charge $60), my employer provided insurance covers the bill from the chiropractor, I have the chiropractor fill out and sign the aflac form, i fax it and then recive a check for $120 in about a week.

  34. Im curious if you have to have regular health insurance to qualify for supplemental health insurance???

    • MonkeysMommy2008 says:

      Supplemental insurance is completely seperate from regular health insurance.  A few companies will only allow you to sign up through your employer, though.  In any case, health insurance should play no role in your supplemental insurance plan.