Health Insurance and Surrogacy

One of the top questions we receive during the surrogacy process is regarding the implications of a surrogate’s health insurance and whether or not it is surrogacy friendly.

As part of our initial 5 step pre-screening process, we have each gestational carrier applicant’s insurance policy reviewed by an independent party focused on surrogacy.  This review helps all parties understand if the gestational carrier’s insurance is likely to pay for her obstetrical coverage, as well as labor and delivery during the surrogacy journey.

At the time of matching, both the gestational carrier and intended parents will have a clear understanding if the surrogate’s health insurance insurance is friendly, meaning that it will pay for her obstetrical care and delivery during surrogacy, and the cost implications of her plan including out of pocket expense, copays, deductibles and coinsurance.

So what happens if the gestational carrier’s insurance is not surrogacy friendly? 

The most feasible option is to purchase the gestational carrier a surrogacy friendly plan during open enrollment. The dates for open enrollment vary each year, however it typically takes place from November to January, with an effective date of January.  

How much does purchasing a health insurance plan during open enrollment cost?  

The costs vary from $12 – $15,000 depending upon the monthly premium and how long the coverage is in place.

Here are two examples:

Monthly Premium $375

Deductible $1,500

Out of Pocket Max $4,500

Time with Plan: 18 months

~Cost: $12,750

Monthly Premium $507

Deductible $1,500

Out of Pocket Max $,500

Time with Plan: 12 months

~Cost: $12,084

What if we miss the open enrollment deadline?

There are other health insurance options available, however they come with a hefty price tag of approximately $30,000.  

Who is responsible for paying the gestational carrier’s health insurance? 
Because the insurance is solely for obstetrical care, it is the responsibility of the Intended Parents to pay for all costs associated with obstetrical care during the pregnancy.

What if our surrogate has surrogate friendly insurance?

The Intended Parents are responsible for paying copays and deductibles related to any obstetrical care or labor and delivery costs associated with the surrogacy journey.

Will the surrogate’s health insurance pay for the baby’s care in the hospital?

No.  Prior to hospital admission, we will ensure the hospital has the insurance information for the Intended Parents.  This is why it is also important to understand if the Intended Parent’s health insurance will has any exclusions at the delivery hospital so that they can be prepared for any out of network costs. 

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