a happy family enjoying time together in the outdoors

Does Insurance Cover Surrogacy? There’s No One-Size-Fits-All-Answer.

When individuals or couples decide that working with a surrogate is the best way for them to create a family, their next questions may concern surrogacy insurance and how to cover medical costs.  

There are a number of costs associated with a surrogate pregnancy. Those costs generally include the fees for IVF, the surrogate’s time and medical care (including labor and delivery), attorneys’ fees, and agency fees. It’s also worth noting that needing donor sperm or donor eggs can increase costs.

Intended parents need to consider these fees and research whether surrogacy is covered by their insurance plan. This article provides an overview of where to start your search for surrogacy insurance.

“Does My Insurance Cover Surrogacy?”

There’s no one-size-fits-all answer to this question because the answer will depend on three factors:

  1. The type of insurance you (or your partner) currently have.
  2. Whether or not the surrogate is covered by health insurance.
  3. The state in which you and the surrogate reside.

While some states, such as New York, have recently enacted laws prohibiting health insurance companies from excluding surrogacy from their maternal services, most intended parents will not have such extensive state-level safeguards. All too often, the answer to the question, “Does our health insurance cover surrogacy?” is “No.” Many US insurers will not cover any surrogacy costs.

Understanding Surrogacy Insurance

While surrogacy is not covered by all insurance plans, some policies cover reproductive technologies such as artificial insemination procedures. Intended parents should investigate their current health insurance policies thoroughly and speak with a knowledgeable health insurance broker before committing to surrogacy.

Some health insurance providers may offer special riders that provide surrogacy coverage for pregnancy and recovery time following delivery. However, these riders are not universally available, and the costs can fluctuate depending on the state of residency.

What to do When Your Insurance Does Not Cover Surrogacy

If you’ve recently discovered that your health insurance does cover surrogacy, congratulations! But if that isn’t the case for you, take heart. There are a few strategies to consider.

  1. Contact your employer’s human resources office to see if any family-planning benefits are available.
  2. Keep a detailed list of what your health insurance will cover and what it will not.
  3. Look into flexible spending accounts (FSA) and health savings accounts (HSA) to cover certain expenses with pre-tax earnings and help to finance the surrogacy process.

The Family Creations Family Can Help!

At Family Creations, we have years of experience helping surrogates and intended parents navigate the complexities of health insurance and how best to cover surrogacy-related medical expenses. Please contact us with any questions. We look forward to working with you to create a loving family!

by Julia McConnell | Last updated on : September 15, 2023