How much does it cost to have a baby in the San Francisco Bay Area?

Healthcare costs are a confusing mess.

Hey everyone.  I usually use this blog to share photos, but I wanted to share some of the crazy associated with the healthcare system in the US.  I hope to update this more and add details as I am able, but I wanted to throw some information out there to start.  The bills that we’ve received are frustrating, but I am trying to make an effort to understand them more.  And I’m sharing the results here.

What we are paying for: An uncomplicated vaginal delivery with no medication except Pitocin after the baby was born, and a 2 night hospital stay.  We had a decent delivery, with one pretty crappy nurse, and good staff otherwise.

What we expected: I had done some research online and came across a couple of forums where mothers shared their birth costs.  From reading that, I expected to pay maybe $1000-5000 out of pocket.  There were some funny (and I mean funny in a sad way) responses that took pity on mothers in the US, because they paid nothing at all or very little.

I learned from WebMD that in 2008 an uncomplicated vaginal birth cost about $9,600, though it was unclear if this was the out-of-pocket cost or the hospital-billed cost.

The New York Times has an article that was written in 2013 that listed the “actual payments agreed to by insurance companies or other payers for services” in the USA to be $9,775 in 2012.

Here’s our bill:

Total out of pocket costs so far: $2740.98, but we owe more than this.  This includes $1,759.95 to Alta Bates Summit Medical Center and $981.03 to our OB.

Our total out-of-pocket bill is $6,845.93. 

Our out-of-pocket costs plus the amount that our insurer paid is $22,102.13.  This is more than double the national average, according to the New York Times. (The math: 6845.93 + 11332.07 + 3924.13 = 22102.13)

The total amount billed by service providers to our insurance company: $33,115.78 (28,057.78 + 5,058.00)

Update Feb 12 2015:

Alta Bates Summit Medical Center issued a partial refund for $858.07, with the text: “Your insurance company indicated your patient responsibility amount is: $1,759.95.  You are entitled to a refund of your overpayment.”  I’m still not sure what our $1759.93 is for, given that the Blue Shield Explanation of Benefits lists our patient responsibility at $4,127.93.

Update Jan 14 2015:

$2718, paid directly to Alta Bates Summit Medical Center in Berkeley.  For what?  I don’t know.  They first called us before our baby was born to ask us to pay in advance, somehow telling us that the amount they are billing was not something covered by our insurance, Blue Shield of California.  I called their Patient Financial Services department to determine what the charge was.  I was told it was like a “down-payment” for my portion of the bill.  Somehow this $2718 was not factored into the bill from Blue Shield, though, and that there may be a mistake.  We will see.

Hospital bills for the mother:

Total billed by Alta Bates Summit Medical Center to Blue Shield for our hospital birth: $28,057.78.  Yep, that is TWENTY EIGHT THOUSAND DOLLARSFor what?!  I don’t know, because Blue Shield’s website has a broken link where the bill is supposed to be.  Blue Shield sent a paper version of the Explanation of Benefits, and now I can see.

Here is the breakdown:

Service/Procedure Amount Billed Amount Blue Shield paid Amount we're responsible for
Room/Board Semi-Private 2 Bed General (*1) 10140.00 11332.07 1859.93
Nursery Newborn – Level I (*2) 4834.00 0.00 0.00
Hospital Misc(*3) – Pharmacy 571.48 0.00 0.00
Hospital Misc – IV Solutions 114.60 0.00 0.00
Hospital Misc – Lab Chemistry 111.70 0.00 0.00
Hospital Misc – Lab Immunology 470.00 0.00 0.00
Hospital Misc – Lab Hematology 394.00 0.00 0.00
Hospital Misc – Lab Other 6.00 0.00 0.00
Hospital Misc – Pulmonary Function 476.00 0.00 0.00
Hospital Misc – Clinic General 344.00 0.00 0.00
Hospital Misc – Labor/Delivery Room  Labor 3320.00 0.00 0.00
Hospital Misc – Labor/Delivery Room Delivery 5008.00 0.00 0.00
Hospital Misc – Room and Board Private OB (*4) 2268.00 0.00 2268.00

*1 – I have no idea why Blue Shield paid more than the amount billed.

*2 – Nursery?  Our baby spent no time in the nursery!  Why was Blue Shield billed for that??

*3 – Hospital Misc – there is a numeric code that goes with these, called a “Revenue Code” and there is no explanation for them on the bill.  You can however look them up online.  This is probably for pitocin, ibuprofen, and stool softener?

*4 – I do not know why we were billed for Room and Board twice.  We stayed two nights in a private room.  You’ll notice that one room and board room is for a private room, OB, the other for a semi-private room.  I don’t understand this.

Total that Blue Shield of CA is paying Alta Bates Summit Medical Center: $11,332.07.  We know that the value of most hospital bills is completely made up.  That 28 grand billed was wishful thinking.  As we should expect.

Total that Blue Shield of CA is billing us: $4,127.93.

Obstetrical bills for the mother:

Service/Procedure Amount Billed Amount Blue Shield paid Amount we're responsible for
Surgical – Routine Vaginal Delivery and antepartum and postpartum care First Newborn(*1) 5058.00 3924.13 981.03

*1 – Once again, you may notice that the numbers do not add up.  This is because Blue Shield has an “Amount Allowed”, the amount they will actually “pay” for a procedure.  Also, OB revenue codes are separate.

Hospital bills for our baby:

Service/Procedure Amount Billed Amount Blue Shield paid Amount we're responsible for
Inpatient Medical(*1) – "Initial hospital or birthing center care/day" 225.00 0.00 60.97
Inpatient Medical – "Subsequent hospital care for the normal newborn per day" 80.00 0.00 32.67
Inpatient Medical – Discharge services 230.00 0.00 114.36
Home Care – Skilled Nurse Visit Charge(*2) 355.00 14.40 295.60

(*1) – There’s a separate set of revenue codes for neonatal care.

(*2) – I don’t feel great about the home visit.  It was a “nice to have” thing, but for $296 out of pocket, I’d have done without it.  We definitely didn’t get much value out of her visit.  She asked us some questions, weighed the baby, and gave some breastfeeding tips.  That’s about it.  She was here for about an hour.

I’m curious about how you’ve paid to have a baby.

How much did you pay out of pocket when your baby was born?  How much did the hospital bill your insurance company?  How much did your insurance company pay?  What’s your story?  Or, if you know more about healthcare billing that I do, tell me if I’m doing this wrong.  Add a comment if you’d like, to help us all out.

I’ll make a table of responses that I get:

Name Out of Pocket Cost Insurer Paid Hospital Billed Insurance Type Description
Us $6845.93 $22102.13 $33115.78 Blue Shield PPO See above!
Mike $30 For the cable TV in the room. It’s the only thing that wasn’t covered. No co-pays. I couldn’t believe it.
Erin $2549.65 $11256.70 Uncomplicated water birth.  Only drugs were $12 ibuprofen.  Charged $833.60 for 8 cold packs!
Robin $175 $7595.96 First child
Robin $525 $1697.71 Second child
Kerry $0 $10000
Edward $2500 $35000
Myung $3000 $35-$40000 Twins!  Includes spinal + c-section + short stay in NICU for one.
Yans $3.60 Not in the US but in Australia.  Billed only for acetaminophen.
Richard $200 $50000 Kaiser Included 1 month NICU stay
Oz $2000 C-section
Camille $2800 $0 $0 Home birth – all out-of-pocket.
Kumar $1200 $7000 about $3500 for anesthesiologist and $3500 for labor/delivery
Michele $200 Includes the 9 months of maternity care and private room.
Greg $3000 $30000 employer-sponsored healthcare plan
Lisa $3500 $1500 $0 Home birth
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9 thoughts on “How much does it cost to have a baby in the San Francisco Bay Area?

  1. Though not in California, In Georgia! The out of pocket cost i paid was $2,549.65. Total was $11,256.70. Uncomplicated water birth. Only drug administered was a $12 ibuprofen. My favorite charges are $2,696.00 for “Supplies”. That includes $833.60 worth of “(8) PK COLD” That’s a cold pack for my vagina. Apparently they were $100 a piece. I will be packing my own next time thank you!!

    1. Hi Erin! Maybe you should get into the cold pack business? Hehe. I was wondering about supplies and all that. We asked for extra diapers/wipes from the nurses and had no idea if we were being charged for that at all. And wow, glad your birth went so smoothly! Mind if I add yours to the table?

  2. Phil, this is maddening to read! Of course we don’t have children and are kind of on the fence with that, but this experience of yours scares me to infertility! How can this be???? I will follow this thread as you post more comments and add to the table. Sheesh. BTW: Can I tell you I am obsessed with lil A.L.Y.? I stare for hours at the photos her mom sends me <3

    1. Hah, I am too. I was surprised at how much we’ve been billed (both out of pocket costs and the hospital to insurer bill) and hearing other peoples stories doesn’t make me feel better about what we paid, but it does help me understand the healthcare system a bit more.

    1. Congratulations! Feel free to share the numbers if you’d like to add to the repository. We heard that the new Kaiser facility is amazing.

  3. Thank you for sharing your costs! We had a baby this year and want to have another next year, and are debating Anthem network costs vs Kaiser network costs. Unsurprisingly there is little information available from official channels except for a “coverage example” from the HSA plan we’re consider, where ‘Peg has a baby’ and pays $2860 when her total example cost is $12840. That is pretty different than what you experienced!

    We went to Kaiser in Oakland, June 2017. Our out of pocket charge was $900 for an uncomplicated vaginal birth, which includes an epidural and a 2 night stay and an overnight stay in the labor and delivery room.

    We paid $600 in the hospital. A few months later we got a bill for $300 more. Apparently the total bill was $25,470. Somehow $5157 was taken off, and then insurance paid $21912, that left us with $300 more to pay.

    A friend had an emergency C-Section at Kaiser in Dec 2016. I think they paid only $250 in total.

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