New research finds parents who went private paid three times more out-of-pocket for childbirth

Choosing where to have your baby is one of the biggest decisions a parent-to-be can make. Public, private, at home …. the options available to Australian parents are worth considering carefully.

According to Finder’s Parenting Report 2023, which surveyed 1,033 Australian parents of children under 12, 62 percent would go through the public system if they were to have another child.

The research found 1 in 4 (27 percent) would go the private route, while 1 in 10 (11 percent) are on the fence.

Those who have previously gone down the private route paid on average more than three times as much in out-of-pocket fees ($2,394) than those who took the public path ($726).

James Martin, health insurance expert at Finder, said the decision to have a child is one of life’s most significant milestones, and everyone has their own preferences when choosing to give birth.

“It really depends on personal circumstances but cost and choice are usually the two determining factors when choosing between a public or private birth.

“Some say the main advantage of going private for childbirth is that you can access a more individual level of care. This includes having your own room where your partner can remain at your side throughout your stay in the hospital.

“On the other hand, while you’re guaranteed your own obstetrician, the medical professionals are just as qualified in the public sector as they are in the private sector.”

While cost is the number one reason for almost half (46 percent) who said they would go public, almost 2 in 5 (38 percent) said the quality of treatment and care is just as good as it is private.

Flexibility around seeing a different medical team (7 percent) and not choosing an obstetrician (6 percent) were other reasons some chose to stick with the public system.

On the other end of the spectrum, 16 percent) of those who said they would go private said it was down to better quality treatment and care.

The ability to choose an obstetrician (15 percent) and access to a private room (15 percent) were other determining factors.

Martin said a major difference between the two is the level of out-of-pocket fees.

“The cost of childbirth in a private hospital is far greater than in the public system, where it’s typically free under Medicare.”

Martin said it’s important to account for the costs involved in the private system.

“For one, you’ll need to pay more while you see out your insurance policy’s waiting period. For most, this means at least 12 months of higher premiums while holding a Gold health insurance policy that covers childbirth.

“Your total costs can run into several thousand dollars once you factor in out-of-pocket costs.

“These can include payments for physio visits, antenatal classes and lactation consultant appointments. Plus, you’ll need to pay your policy’s excess when making a claim at the private hospital.

“Our research shows more than a quarter see these costs as worth paying for the extra care and choices you may unlock by going private,” Martin said.

WATCH: More on baby health. Continues after …

What costs aren’t fully covered by private health insurance?

Out-of-hospital medical services. Services including private GP visits, blood tests, ultrasounds, specialist consultations and obstetrician check-ups tend to not be covered. Aside from antenatal classes, most of these services can be partially claimed back on Medicare.

The gap. The gap refers to the difference between the Medicare Benefits Schedule (MBS) fee and what your health fund will pay for medical services. Usually this gap must be paid by you, but some private health policies can cover it.

Policy excesses and co-payments for hospital admissions. Excesses and co-pays are expenses that must be paid by you. These amounts mostly depend on factors such as if your baby requires additional postnatal care. Costs also vary from policy to policy.

Your baby’s pre-release check-up. A paediatrician will come to the hospital and check on your baby. Check-ups – including any follow-up appointments – are usually not covered, but can be partially claimed back through Medicare.

You’ll find more information on the out-of-pockets costs involved in childbirth HERE.