Surrogacy Insurance: What You Need to Know

Surrogacy is an exciting personal journey for both intended parents and surrogates. It’s also a medical, legal, and financial journey—which means that surrogacy and insurance go together. We are often asked, “How does surrogacy work with insurance?” and “Does insurance cover surrogacy?” It does, if you take the proper measures. Insurance may not be a very exciting topic, but it’s an important one to understand before you undertake the surrogacy process.

What Kind of Insurance is Needed for Surrogacy?

Obviously, a gestational surrogate needs medical coverage to pay for any medical expenses connected with the pregnancy and birth. It is also highly recommended to have complication coverage. Complication coverage covers costs that arise due to medical complications from the pregnancy. These costs may be, but are not necessarily, medical; for instance, a policy may cover lost wages due to a surrogate having to be on bedrest.

Although it’s not pleasant to think about, it may also be important to have a life insurance policy for the surrogate for the unlikely (but not impossible) scenario that she succumbs to a medical complication during the pregnancy or birth. Having a life insurance policy helps to protect the surrogate’s own family.

Can a Gestational Carrier Use Her Own Health Insurance for Surrogacy Coverage?

Maybe. Some health insurance plans, even though they would cover a surrogate’s own pregnancy-related medical expenses, have exclusions for surrogacy. An insurance broker that provides fertility related insurance coverage can help a gestational carrier determine whether her existing health insurance will provide sufficient coverage for the surrogacy process. Often, the intended parents received a copy of the insurance policy from the surrogate to be thoroughly reviewed by an insurance broker. If the coverage cannot be used, the broker can help find an alternative policy which will be paid for by the intended parents.

Are Surrogates Required by Law to Have Health Insurance?

While most states do not have laws that require a gestational carrier to have health insurance, almost all surrogacy agencies and surrogacy attorneys insist on it. Medical treatment is costly in general, and surrogacy involves extensive medical care, even when everything goes smoothly without any unforeseen complications. When unexpected medical issues do occur, costs can skyrocket. Having adequate surrogacy insurance coverage can prevent financial catastrophe.

When Should Surrogacy Insurance Be Secured?

Ideally, health insurance for surrogacy should be in place before the beginning of the pregnancy. As with any insurance policy, there is a lot of red tape involved in securing surrogacy insurance. Intended parents may want to begin doing research on insurance policies even before they begin working with a surrogate. That way, if they do need to purchase additional surrogacy insurance coverage, they will know their options and be prepared to purchase a plan.

How Much Does Health Insurance for Surrogacy Cost?

Surrogacy insurance coverage is not cheap. That said, having surrogacy insurance, even if not mandated, should be seen as an investment, not an expense. What a policy will cost depends on a number of factors, but annual surrogacy insurance premiums often range from $7,000 to $30,000, depending upon the type of plan, for the duration of the surrogacy.

What Considerations are Important When Choosing Health Insurance for Surrogacy?

In addition to making sure that a health insurance policy will cover surrogacy, it is also important to make sure that the gestational carrier’s preferred providers are in-network for the insurance company to prevent unnecessary costs. It’s also important to be aware of what is not covered by the policy, such as elective procedures or pre-existing conditions.

Who is Responsible for the Surrogate’s Additional Insurance Costs?

In the likely event that some additional surrogacy insurance coverage needs to be purchased, the intended parents should be responsible for covering these costs, as well as any co-pays or out-of-pocket medical expenses incurred by the carrier due to the surrogacy.. This should be clearly specified in the surrogacy agreement. The gestational carrier should not have to bear any additional financial burdens as part of the surrogacy.

Is the Baby Covered by the Gestational Carrier’s Health Insurance?

During the pregnancy, the fetus being carried by the surrogate is covered by her health insurance. However, after the birth, the intended parents will need to have medical coverage in place for their new baby. They should review their health insurance policy well in advance of the birth and determine what steps are necessary to ensure their baby’s coverage from birth. Their surrogacy attorney can help with issues such as obtaining a pre-birth parentage order if necessary to confirm the parent-child relationship to their health insurance company.

What Should I Do to Learn More About Surrogacy and Insurance?

If you are working with a surrogacy attorney or surrogacy agency, they can answer your questions about surrogacy and insurance—as well as helping you explore and answer questions you may not have considered. If you are considering surrogacy and are looking for information about surrogacy insurance coverage, contact Brinkley Law Firm LLC to schedule a consultation.