When you choose to become a surrogate, you're offering an incredible gift. While the emotional journey is often what gets the most attention, the financial and legal details must be just as secure and detailed. Health insurance can play a big role in your surrogacy journey, and it is only right for you to wonder what coverage is like for you.
Surrogacy contracts are specifically designed to ensure you and your family are fully protected financially throughout your entire journey.
Wondering how health insurance works in your surrogacy contract? Speak with a specialist today about your insurance coverage and get answers now.
How Health Insurance Works in Surrogacy Contracts
The main goal of health insurance in surrogacy is to make sure you have comprehensive, high-quality medical coverage for all steps of the process, and that the intended parents provide comprehensive financial coverage.
Before you are matched with intended parents and definitely before you begin any medical procedure, an experienced surrogacy attorney will draft a Gestational Carrier Agreement (GCA), which is your legal contract. This document clearly defines the financial responsibilities of the intended parents, especially concerning your medical care.
Who Pays for the Surrogate’s Insurance?
The intended parents are always responsible for paying all insurance premiums and out-of-pocket costs related to the surrogacy, including deductibles, co-pays, and co-insurance.
This financial responsibility is non-negotiable and is clearly defined in your surrogacy contract, making the process completely transparent. Whether you use your existing plan or a new policy is purchased for you, the intended parents cover the expense.
What Happens to Your Existing Insurance Policy
While your existing health insurance policy may cover all or part of the medical costs of your surrogacy journey, the actual coverage amounts and included services can vary widely depending on the insurance carrier and policy type.
That’s why a detailed insurance review is essential. Our specialists evaluate your existing coverage, and if your policy isn't surrogate friendly, the intended parents will purchase a new, comprehensive plan for your situation, which they cover entirely.
Life Insurance Requirements for Surrogates
While health insurance covers the medical costs of the pregnancy and delivery, life insurance is a mandatory component of every legal surrogacy contract. This requirement is in place to protect your family should the unthinkable occur, offering vital peace of mind.
When you become a surrogate it’s encouraged to have surrogate life insurance, but you don’t need to provide this policy. We provide a life insurance policy to protect our surrogates and their families.
Policies, Death Benefits, and Peace of Mind
Surrogacy contracts require the intended parents to purchase a term life insurance policy for the gestational carrier. The common standard today is a death benefit of at least $500,000, though some contracts may require more. Important elements of this coverage include:
This policy must name your family (or a beneficiary of your choice) as the recipient of the death benefit. The life insurance policy benefit is a lump sum payment intended to provide financial security for your loved ones should you pass away due to complications from the pregnancy or delivery. The policy is typically in force for the duration of the surrogacy journey, from the beginning of the medical process through the delivery and up to a specific period (60-90 days) postpartum. Because this is a standard life insurance process, you will go through a medical screening. While this can sound daunting, it’s a routine step to confirm eligibility. In rare cases where an applicant is declined, alternative arrangements are made with the support of your surrogacy attorney to ensure your family is protected.
Remember, while complications in surrogacy are rare, this protection ensures that you are financially safeguarding your family just as you are helping the intended parents build theirs.
Can I Use My Existing Health Insurance as a Surrogate?
You can use your existing health insurance as long as the policy does not exclude surrogate pregnancies.
At the start of the journey, your agency will perform a detailed insurance review to confirm your plan is surrogacy-friendly and does not contain any exclusionary clauses.
If Your Policy is Surrogate Friendly
Great! Your existing policy will cover the bulk of the medical costs. The intended parents will simply pay all the premiums, deductibles, and co-pays associated with the pregnancy. This is often the most straightforward scenario.
If Your Policy Has an Exclusionary Clause
This means your insurance carrier will not cover a pregnancy carried for another family. In this case, the intended parents are legally required to purchase a separate, comprehensive health plan specifically for your pregnancy. Your existing policy remains in force for your personal (non-surrogacy related) medical needs.
Secondary Insurance and ACA Plans in Surrogacy
Sometimes, an existing policy is usable but doesn't provide complete coverage. This is where secondary insurance requirements and the purchase of an Affordable Care Act (ACA) plan for surrogacy come into play.
Filling Coverage Gaps
When primary coverage doesn’t meet all costs, or if supplemental insurance is purchased, you’ll need to know how the benefits coordinate:
- Primary Insurance Coverage: Your primary insurance will likely cover routine prenatal care and delivery. However, it may not cover certain procedures specific to the surrogacy medical process, such as the IVF transfer itself.
- Intended Parent Responsibility: Your surrogacy contract ensures the intended parents cover whatever your insurance does not. Any expenses related to the pregnancy, birth expenses, and many others are covered by the surrogate compensation package.
- Secondary or ACA Plans: If the initial insurance review shows a significant gap in coverage, or if your plan is deemed unfriendly, the intended parents may choose to purchase a supplemental insurance policy, often an Affordable Care Act (ACA) plan or private commercial insurance known to be surrogate friendly. This secondary policy is purchased during the open enrollment period and is paid for entirely by the intended parents.
This process eliminates the risk of high out-of-pocket costs for the gestational carrier, meaning you never have to worry about a self-pay dilemma.
What Happens If Insurance Is Denied or Cancelled?
Unexpected challenges can arise with insurance, but your contract and agency are there to solve them.
If a supplemental policy is denied during the underwriting process, your agency and attorney will immediately pivot to secure an alternative plan, such as another Affordable Care Act (ACA) plan for surrogacy or a fully self-funded program, ensuring no delays.
If an insurance company attempts to cancel your coverage, your contract dictates that the intended parents must immediately secure a replacement policy of equal or better value. Your legal team works to prevent any gap in care and holds the intended parents financially accountable for the immediate purchase of a new plan.
These legal protections reinforce the importance of having an experienced surrogacy attorney who specializes in these complex contract details.
How American Surrogacy Supports Surrogates With Insurance
You shouldn’t have to navigate medical coverage on your own. At American Surrogacy, our full-service approach is designed to remove the stress of this financial and legal hurdle. Here’s how we support you:
We work hand-in-hand with your surrogacy attorney to ensure the GCA fully protects you, specifying every detail regarding the financial and insurance obligations. If your existing life insurance policy or health plan isn't suitable, we partner with industry-leading professionals who specialize in identifying and securing the best surrogate friendly insurance options, including comprehensive ACA plans. From the initial insurance review to handling any billing or claims issues that arise after delivery, we manage the entire process. This means you can focus entirely on the physical and emotional aspects of your journey, knowing your financial well-being is secure.
Ready to Start Your Surrogacy Journey? We’ll Make Sure You’re Covered
Understanding the details of health insurance in surrogacy contracts is a vital part of entering your journey with confidence. While the legal and financial terms can seem complicated, remember that they are all structured to protect you as the gestational carrier.
By choosing a qualified surrogacy agency, you guarantee that all of these complex steps are expertly handled for you. You don't just get a contract; you get a comprehensive plan for protection.
Have more questions about surrogacy contracts and health coverage? Get answers today by contacting a surrogacy specialist who can give you personalized guidance.