Surrogacy Insurance Options for Intended Parents: What's Covered?

Building a family with gestational surrogacy is an exciting yet stressful time when it comes to balancing your finances.

On top of the emotional and financial stressors for intended parents, navigating your surrogate's insurance options can be nerve-wracking as it heavily involves your surrogate’s health and wellbeing. 

Options for surrogate insurance as intended parents

Educating yourself around your surrogacy insurance options is key to successfully navigate your gestational carrier insurance, expenses and other legal considerations needed to grow your family. Once you have a clear understanding of your surrogate insurance costs, coverage and benefits, you’ll be on your way to confidently planning this journey while minimizing surprises or hidden costs left to overwhelm you. 

To get you up-to-date on potential financial planning you may need for surrogacy, let’s explore the processes of: 

• Reviewing your surrogate’s insurance provider. 
• Navigating out-of-pocket costs. 
• Planning your newborn’s coverage.
• And buying additional or alternative insurance (if necessary).

Once you know all your financial options, you can refocus all your attention on what matters most: welcoming your new family member and making your dreams a reality.

Does medical insurance cover surrogacy?

When women are carrying their own pregnancy, they’re able to use their own insurance. However, using a surrogate can make this process a bit trickier, as policies and coverage vary across insurance providers. 

To cover your surrogate's pregnancy with insurance, check that her insurance provider doesn’t exclude surrogate pregnancies from their coverage plans. Certain clauses would mean it’s possible that your surrogate’s insurance provider won’t cover costs associated with surrogacy.

Reach out to an insurance specialist referred to you by your surrogacy agency as a first step to determine your surrogate’s insurance coverage. Together, you can assess how much insurance coverage you or your surrogate will receive based on your unique case. You can also determine if you need to pursue additional coverage and how to manage out-of-pocket payments.

Let’s review how these considerations will factor into your total insurance and financial plan. 

Your surrogate’s insurance provider

Your surrogate may have her own medical coverage to cover part of the service if her policy  doesn’t have a clear exclusion for surrogate pregnancies. If her insurance is subject to exclusions, you may need to purchase a back up plan or a new plan for the surrogacy.

Some insurance plans may have a lien for surrogacy wherein they allow surrogate maternity coverage but recoup back a portion of what they have paid out because the surrogacy is compensated and they feel the parents are financially responsible. 

Of course, top-rated surrogacy agencies always refer intended parents to an insurance expert to check a surrogate's insurance plan during the screening process, so you can select your surrogate with this information in mind. 

Out-of-pocket expenses

As standard in all surrogacy agreements, out-of-pocket costs, such as co-payments required for doctor’s appointments or costs not covered by your surrogate’s insurance,  fall on the intended parents.

There are also typically deductibles and out-of-pocket maximums that are the responsibility of the intended parents. The responsibilities of the parents to cover these expenses should be included within contracts created by your attorneys prior to the surrogacy to give you insight into potential costs and provide you with a comprehensive picture of your financial responsibilities.

How much does insurance cost for surrogacy maternity coverage?

If you have done the math and your surrogate’s insurance plan doesn’t cover surrogacy, fear not! You can choose to purchase comprehensive surrogacy-specific coverage. Although this is a great fallback, the cost-effectiveness of this option will vary depending on your unique circumstances.

For instance, while the thought of paying out-of-pocket for surrogacy sounds difficult, surrogacy insurance plans also tend to be expensive. Although, the benefit of surrogacy coverage insurance plans is that they cover surrogate medical costs, which may make these plans a great remedy if your health insurance plan doesn’t offer much coverage. It’s not recommended to cash pay without placing some kind of stop loss policy, but there are backup plans for cash paying to limit your financial liability and add a safety net. 

If you’re choosing to purchase a new insurance policy for your surrogate or opting for a completely new insurance plan, it’s important to consider if this plan will be accepted at your surrogate’s preferred OB/GYN and delivery hospital for her comfort. It may require a little back-and-forth to discover facilities that are within your surrogate’s defined preferences for all prenatal visits and the delivery that also takes your insurance. This will ensure that you are paying minimal out-of-pocket costs, and do not become responsible for the full amount of medical services or your baby’s hospital care.

The insurance advisor referred by your surrogacy agency can be a great resource in ensuring you choose a plan that is going to offer value to you based on your needed services. 

Explore your surrogacy insurance options  

Don’t let worries of cost stop you from growing the family of your dreams. Though surrogacy is expensive, Hatch Egg Donation & Surrogacy provides surrogacy that strives to be inclusive to many families' fertility needs and budgets.

Click here to get connected with a financial advisor to discuss payment options, such as long-term payment plans, split payments, and surrogacy insurance options. Our team is excited to be a part of your fertility journey.