What No One Will Tell You About Surrogacy Insurance!

What No One Will Tell You About Surrogacy Insurance!

Let’s talk about surrogacy insurance! We know that the mere thought of insurance coverage for your
surrogate and newborn can be overwhelming. Here we’ll cover information about surrogacy insurance
options, what’s contractually obligated versus optional, costs and even the things that nobody seems to
put in writing.

The first thing you’ll want to do once you’ve matched with a surrogate is check if they have surrogate-
friendly insurance. While this is the least expensive option, you’ll want to work with an insurance
professional who is familiar with the surrogacy industry to review the plan and verify their coverage to
ensure there isn’t an exclusion for using their maternity benefits while acting as a surrogate. It is
important to look into this as soon as possible to address any potential variables that may affect your
cycle including self-funded, vs. fully funded policies, employer open-enrollment, or loss of employment.

The second thing you’ll want to check is your own employer insurance. You may have fertility coverage
that assists with the costs of gestational carrier coverage, newborn coverage or flexible spending
accounts (FSA) that may be applied to some of the costs of fertility treatment. Additionally, your
employer may offer supplemental coverage through fertility-friendly programs such as Progeny, WIN
Fertility or Carrot.

In the event it is necessary to purchase a separate insurance policy for your surrogate and newborn,
your surrogacy agency may already work with a third-party provider that specializes in insurance for the
Assisted Reproductive industry. At Alcea, we partner with Art Risk Financial & Insurance Solutions who
offer comprehensive policy options for surrogacy journeys that cover Gestational Carrier IVF treatment,
maternity coverage and Intended Parent newborn coverage.

Before we dig into the details of surrogacy insurance options, let’s cover when a baby via surrogacy goes
from being covered under the surrogate’s medical insurance policy to being covered under the Intended
Parents insurance policy. While the baby is in utero during the pregnancy, the unborn baby is covered
under the maternity coverage policy of the surrogate. Once the baby is delivered and the Intended
Parents obtain legal parentage, the newborn is now covered under the policy of the Intended parents. It
is important for Intended parents to review their newborn insurance policy prior to delivery in the event
it is necessary to purchase additional coverage!

Here is a list of Insurance options you’ll need to consider during your surrogacy journey:

  • Maternity Insurance for the Gestational Carrier
  • Life Insurance for the Gestational Carrier
  • IVF Complications Insurance
  • Short Term Disability Insurance for the Gestational Carrier
  • Newborn Insurance

Surrogacy Maternity Insurance for the Gestational Carrier:

This policy covers medical expenses during the surrogacy journey for the surrogate including prenatal
care, delivery expenses and any complications that may arise. This can be an Affordable Care Act (ACA)
policy, a short-term policy or a maternity only policy.

  1. Affordable Care Act policy: A traditional medical insurance policy based on where the surrogate
  2. Short-term policy: Provides a temporary solution to help fill gaps in coverage (i.e. if a surrogate
    is in between jobs, waiting for coverage to begin or outside the open enrollment period)
  3. Maternity only policy: Written through the Lloyd’s of London market for surrogacy. A variety of
    policies are available for different, individual needs including:
    • Policy used as Primary with no other insurance considered.
    • Policy written behind other insurance in the event the Primary policy does not work for the
      capacity intended.
    • Policy written to protect clients intending to try Cash Pay.

Life Insurance for the Gestational Carrier:

Insurance coverage offering financial protection for the Gestational Carrier’s family in the event of the
Gestational Carrier’s passing. Customarily, this is a required policy as part of contractual obligations.

Short-Term Disability Insurance:

Designed to cover the surrogate’s loss of wages in case she is unable to work due to pregnancy-related

Newborn Insurance:

Newborn insurance covers medical expenses immediately after birth including nursery stay, outpatient
care, and medically necessary NICU medical expenses. May newborn insurance options are only
available for singleton or twin pregnancies. In the rare occasion your surrogate is carrying triplets, you
will want to check for additional newborn insurance coverage options!

Surrogacy Insurance Costs:

Now that we’ve reviewed the various insurance options you’ll need, let’s talk about cost! While there is
no “one size fits all” number for surrogacy insurance we’ve created a chart of costs ranges for both
contractually obligated policies and optional policies.

Estimated Costs

  • Affordable Care Act (ACA): $12,000 – $18,000
  • Short term policy: $2,400 + standard maternity care costs
  • Maternity Only Policy: (Singleton) $25,000 – $35,000, (Twins) $40,000- $50,000

We know that purchasing an additional insurance policy can get expensive quickly so here are a few
cost-saving ideas:

  • Ask your employer if they offer assistance with costs through programs, such as Progeny, WIN
    Fertility, or Carrot.
  • Compare insurance agencies and policies available
  • Research cost reduction programs like IVF Connect or Rx Concierge for discounted prescription

Check out our Ways To Fund Your Surrogacy Journey blog for more cost saving suggestions!

Lastly, we recommend that you surround yourself with knowledgeable professionals. Experience and
knowledge are important when embarking on a surrogacy journey. Be careful with trying to make
decisions on your own that may appear to be cost-effective, you could risk skipping steps and ultimately
paying more. That is why it’s important to find professionals you trust and ask them for assistance. Your
team should include an Agency, a Fertility Law Attorney, an IVF Clinic, and an Insurance Professional.
This team will walk you through each step of the process and will be able to support you with questions
or concerns. There is also a good chance that this team will be able to recommend other professionals in
the industry which could assist in cutting costs. What matters most is that you, your baby, and your
surrogate are healthy and taken care of. If you have questions or need guidance, please reach out to us.
We are happy to assist in any way to help ensure the safety of all parties.