Not only does a Caesarean delivery substantially increase the cost of having a baby - by about $1,700 - but where you deliver will also affect the cost, according to the Health Insurance Association of America. If you're in a highly populated area of the Western United States, having a baby will cost more than in a less urban part of the Midwest. A recent study by the association shows that the average cost of a normal delivery runs from $2,250 in the non-metropolitan Midwest - the lowest average in the country - to an average of $3,000 in the metropolitan West.