So the purpose of this thread is to ask if anyone has suggestions that I haven't thught of for the situation I'm in. Here's the situation: about 6 months ago I quit my previous job making considerable more money, and where I had decent health coverage (Mistake 1). At my new position not only did I take a pay cut but the health coverage was considerably more, so to offset losing part of my pay I dropped health coverage for myself and family (Mistake 2). Secondly, after selling an investment property last November I took all that money and my savings account, and dumped it into my mortgage, nearly paying it off, it is currently around $4,500 (Mistake 3). Then I found out at the first of this year that we were going to be blessed with an obvisously unexpected child. With no savings, no insurance, and less wages it's not exactly a comforting situation to be in.

I've cut back on all unneccesary expenses to reduce bills.
I've looked into still getting insurance through my company (it's under review).
I've looked into reamortizing my mortgage (it's $500).
I've looked into individual family coverage to cover the baby as soon as it's born.

But in the end I'm concerned that I might not be able to raise quite enough money before September (due date) to cover a non-complicated pregnancy, let alone handle any additional complications. I make $40K/yr and live in Alabama, so I believe I'm uneligible for medicaid in this situation.
Is there an option I'm unaware of? Any suggestions?

PS - Please no responses of what I could have done to avoid being in this situation, I'm well aware of how I got to be where I am and it is unhelpful at this point to be reminded of what I should have done differently. On that same note, let anyone thinking about commiting either of those mistakes I listed or any of the others I've done, think twice about what you are considering and where it may lead you.

Medicaid automatically covers pregnancies, so you can go that route.

You just have to go to places that take medicaid. I had an ex-girlfriend who got pregnant (not by me and no, not while we were together) who went this route and everything was fine.

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Johnacon said:Medicaid automatically covers pregnancies, so you can go that route.

You just have to go to places that take medicaid. I had an ex-girlfriend who got pregnant (not by me and no, not while we were together) who went this route and everything was fine.

According to Medicaid Website for SOBRA Medicaid (Pregnant Women), Income after Deductions must not exceed $2,350/month for a family of four. Which puts annual income at around $28,000, far below my $40K. Am I reading this wrong? Or is there another way to get that coverage?

Thanks, dcwilbur for the older threads, I'll look through them as soon as I get the opportunity. The other suggestions on Equity lines of credit I considered as a backup plan if it turns out I can't raise the money and/or we have complications. Is there any benefit to going ahead with one this early? Or would it be sufficient to leave in the pocket as a backup plan?

A few thoughts, in something like order of importance:

1) Do not skimp on pre-natal care. The health of your child is far more important than other concerns. That said, do not spend large sums of money on tiny chances. If a doctor recommends extra ultra-sounds, special tests, etc, try to nail down if they actually believe the test is necessary, or if they're covering their ass for the 1 in 10,000 cases where the extra test would actually reveal a problem. This is an extremely personal choice, and the decision process can be difficult. Sometimes, it can help to find out what would happen if you fail to discover a certain problem ahead of time--some tests are just so the doctors can be slightly more prepared for potential complications after the birth because there is nothing they can actually do in utero.

2) Typically (I believe), having a child qualifies you to change your insurance coverage. Of course, this would only apply after the child is born, but if you can't get coverage before then, look into it.

3) Negotiate. Heavily. You will be billed by many different people, and you will want to have a prearranged price for as much of the care necessary as possible. The hospital/doctors/etc would much rather reduce their rates to something you can afford than to bill you at their "standard" rates (which would be much more than they would get from an insurance company) and have you default on the debt. I believe some hospitals will give you a "package" price for a standard birth, including payment plans.

4) If you really only owe $4,500 on your home (maybe a typo?) you may want to consider a cash-out refinance. "Using your home as an ATM" is one thing, partially leveraging your assets to get a loan that may mean avoiding bankruptcy is another.

5) Consider a second job for a few months until the baby is born. Don't count on the income after the birth, but even a couple thousand extra could improve your situation considerably.

Good luck. Oh, and congratulations.

Edit: Forgot to add that you may want to consider a mid-wife or some other "natural childbirth" program. They tend to deemphasize drugs and may be less expensive than having a OB perform the birth.

Ionitor said:A few thoughts, in something like order of importance:

1) Do not skimp on pre-natal care. The health of your child is far more important than other concerns. That said, do not spend large sums of money on tiny chances. If a doctor recommends extra ultra-sounds, special tests, etc, try to nail down if they actually believe the test is necessary, or if they're covering their ass for the 1 in 10,000 cases where the extra test would actually reveal a problem. This is an extremely personal choice, and the decision process can be difficult. Sometimes, it can help to find out what would happen if you fail to discover a certain problem ahead of time--some tests are just so the doctors can be slightly more prepared for potential complications after the birth because there is nothing they can actually do in utero.

2) Typically (I believe), having a child qualifies you to change your insurance coverage. Of course, this would only apply after the child is born, but if you can't get coverage before then, look into it.

3) Negotiate. Heavily. You will be billed by many different people, and you will want to have a prearranged price for as much of the care necessary as possible. The hospital/doctors/etc would much rather reduce their rates to something you can afford than to bill you at their "standard" rates (which would be much more than they would get from an insurance company) and have you default on the debt. I believe some hospitals will give you a "package" price for a standard birth, including payment plans.

4) If you really only owe $4,500 on your home (maybe a typo?) you may want to consider a cash-out refinance. "Using your home as an ATM" is one thing, partially leveraging your assets to get a loan that may mean avoiding bankruptcy is another.

5) Consider a second job for a few months until the baby is born. Don't count on the income after the birth, but even a couple thousand extra could improve your situation considerably.

Good luck. Oh, and congratulations.

Thank you, it will take some luck to get through, but we are excited.

Number 1 is excellant advice, thank you.
On Number 2 I believe you are right, and it eases my mind a little to know that the child should be able to be covered.

Number 3 is the only place I think I can improve tremendously. Is there anyone with experience negotiating hospital bills? Anyone that has experience with the maternity card?

Number 4, it isn't a typo, and yes, the house will have to be borrowed against if it comes down to it. The cheapest way I've found to lower the mortgage payment would be to pay $500 to reamortize, lowering the monthly payment to about $26. This would net an additional $2825 in pocket before the baby comes, but I'm not sure that that amount is worth a total loss of $500 + additional interest.

Number 5, Yes, a second job is in consideration. It is difficult to find night/weekend work to fit into my schedule but I am currently looking, thanks again!

rube203 said:Ionitor said:4) If you really only owe $4,500 on your home (maybe a typo?) you may want to consider a cash-out refinance. "Using your home as an ATM" is one thing, partially leveraging your assets to get a loan that may mean avoiding bankruptcy is another.Number 4, it isn't a typo, and yes, the house will have to be borrowed against if it comes down to it. The cheapest way I've found to lower the mortgage payment would be to pay $500 to reamortize, lowering the monthly payment to about $26. This would net an additional $2825 in pocket before the baby comes, but I'm not sure that that amount is worth a total loss of $500 + additional interest.I would not pay the $500 to reamortize the existing balance. Instead, go get a no fee HELOC to pay off the entire balance of the existing mortgage and get as high a line of credit that your home value will support. Minimum payments on the HELOC will be interest only, or less than twenty bucks a month. You can continue to make the old $500 mortgage payment, and if you end up needing the money, you can just draw it back out. This plan will give you the ultimate flexibility, but be disciplined so that you don't run up debt unnecessarily.

lorcha said:Are you sure you're ready to be parents? Those are some pretty big mistakes that you've made. Once you have kids, you are going to have to make more responsible financial decisions. There are many couples out there who are unable to have children, but who make better financial choices than you do. Giving the kid up for adoption would be a great way to get your medical bills paid for.

From my own anecdotal evidence, ability to handle finances is very poorly correlated to ability to be a good parent. Furthermore, ability to recognize past mistakes tends to be very highly correlated with making fewer in the future.

Edit: double post