Maternity and Newborn
Care: Understanding
the Basics for Small
Business Owners

In today’s health care environment, maternity and newborn care has never been more important for small business employees. As the population continues to grow, new parents are increasingly receiving inadequate prenatal care, resulting in an alarming increase in the U.S. infant mortality rate over the past few years. As a small business owner, providing comprehensive health care benefits is a crucial part of fostering a productive and supportive workforce that helps employees and their families thrive during one of the most critical times of their lives.

In this article, we’ll provide definitions, benefits and key service examples that can help small business providers better understand the importance of maternity and newborn care as part of their comprehensive health care coverage.

What is Maternity and Newborn Care?

While both forms of care focus on guaranteeing the health and well-being of the mother and child during and following pregnancy, there are several key distinctions that separate maternity and newborn care:

• Maternity Care refers to the medical and supportive services provided to women during pregnancy, childbirth and the postpartum period. This includes monitoring the mother and child’s well-being during pregnancy, medical assistance during delivery and health care services related to the period immediately following childbirth.
• Newborn Care refers to the medical and supportive care provided to a baby immediately after birth and during the first few weeks of life. This care includes monitoring the baby's vital signs, ensuring proper feeding and nutrition, maintaining hygiene and supporting the baby's overall health and development.

Maternity and newborn care can be administered by doctors, nurses or midwives in the mother’s home, in hospitals or at specially designated birthing centers. Like any form of health care coverage in the United States, maternity and newborn care can be complex and difficult to navigate from state to state.

Benefits of Including Maternity and Newborn Care in Health Plans

Adopting maternity and newborn care into your small business’ comprehensive health care coverage provides several benefits to your workforce, including increased satisfaction and an underlying assurance of financial security. These emotional and monetary benefits help solidify the well-being of your employees in and out of the office, providing both peace of mind and motivation if properly applied.

There are productivity-related benefits to integrating maternity and newborn care into your benefits package as well, driving employee retention and attracting top talent by offering a robust range of health care benefits.

Maternity and newborn care also brings financial benefits to the businesses itself, qualifying companies for tax benefits and incentives:

• According to healthcare.gov , the Small Business Health Care Tax Credit is of particular advantage to companies with fewer than 25 full-time employees, offering higher tax benefits for companies with smaller workforces.
• The Congressional Research Service reports the Paid Family and Medical Leave Business Tax Credit can offer employers a tax offset of 12.5% to 25% of the cost of employees taking advantage of time off as part of maternity or newborn care.

Lastly, there’s the simple fact that providing maternity and newborn care is a legal and regulatory requirement under the Affordable Care Act (ACA) mandates and Family and Medical Leave Act (FMLA) considerations. Businesses are, in effect, required to provide these benefits to ensure legal compliance and avoid penalties and fees.

Key Services Included in Maternity and Newborn Care

Maternity and newborn care services encompass a variety of services and types of care, from supportive and diagnostic services to childbirth and pediatric care.

Let’s start with the key services provided as part of Maternity Care:

• Prenatal Care: The medical and supportive care provided to a woman throughout her pregnancy.
• Labor and Delivery: The process of childbirth, starting from the onset of labor contractions through the delivery. This phase includes medical interventions and support to ensure the safety and health of both the mother and the baby during childbirth.
• Postpartum Care: The medical and emotional support provided to a mother following childbirth. This period typically extends for about six weeks after delivery, although care may continue longer depending on the mother's needs.

After the child has been born, Newborn Care includes the following key services:

• Initial Hospital Stay: Benefits that cover the costs associated with the newborn's first days in the hospital after birth.
• Newborn Screenings and Tests: A series of medical assessments performed on newborns shortly after birth to detect potential genetic, metabolic, hormonal and functional disorders. These screenings aim to identify conditions that may not be immediately apparent but could affect the baby's long-term health if left untreated. Common tests include blood tests (heel prick), hearing tests and screenings for heart defects and other congenital conditions.
• Pediatric Care: The medical care and support provided to infants, children and adolescents. Pediatric care encompasses a wide range of services, including routine check-ups, immunizations, growth and development monitoring, treatment of illnesses and injuries, and management of chronic conditions.

Conclusion

Providing comprehensive maternity and newborn care coverage within your health plan is a crucial step for small business owners to ensure the well-being and satisfaction of their employees. These services not only support the health of mothers and their newborn children but also enhance employee retention, attract top talent and foster a productive workplace that values employees and their families.

By understanding and implementing these vital health care benefits, small business owners can create a supportive environment that promotes long-term success and stability for both their employees and their business.