When a baby is born, parents have a lot to think about, and a new health insurance policy may not be high on the list of concerns. However, finding the right newborn health insurance policy and taking relevant steps to enroll a new baby in a health plan is very important and must be handled within the first few days of a child's life.

Most states have a law that automatically extends a parent's health insurance policy to a newborn for the first 30 days of the newborn's life (or the first 30 days after an adoption). However, it's up to the parent to contact their insurance company to tell them about the baby. Parents should contact their insurers immediately after a child is born, preferably as soon as they're home from the hospital. Failure to do so could have serious consequences; a health insurance company could legally deny health insurance claims if they haven't been notified of a new baby. Informing the health insurance company about a pregnancy isn't enough - the actual birth must be reported, as they'll need the baby's social security number and other information. Parents should use this 30-day period to arrange for a permanent health insurance policy. Parents with individual health insurance policies should also search online for new health insurance quotes, as it's entirely possible that there's a less expensive option available.

Newborns are rarely denied coverage through a parent's insurance provider and may even qualify for special enrollment in a health insurance plan. When this is the case, the newborn's enrollment in a health insurance policy must be treated fairly by the insurance provider. The provider cannot declare any preexisting conditions for the newborn, provided that the baby is enrolled in a health insurance policy within the first 30 or 31 days after its birth (depending on state law). New parents should ask their insurance agents about this type of special enrollment to determine whether or not it could be a helpful option, especially if a baby is born with a health condition.

High coverage, low co-payment newborn health insurance plans are best for the first few years of a baby's life, as minor medical issues, medicines and treatments are almost unavoidable and any treatment for a baby is likely to be expensive. Getting health insurance as quickly as possible after a baby's birth can mean tremendous peace of mind and lower insurance costs down the line. Parents should get a permanent insurance plan in place to keep the baby insured and avoid any lapse in coverage.