Surrogate Health Insurance

What type of surrogacy insurance would be best? What is covered by the health insurance? The cost of buying the insurance.
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surrogate health insurance

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: September 19th, 2022

Considering Surrogacy? Remember to Explore Surrogate Health Insurance

While surrogacy has become quite a popular family creation method, there are still many things regarding the process that intended parents aren’t aware of. Many hopeful parents embarking on this journey learned about surrogacy insurance only when they spoke to the surrogacy agency.

Now, surrogacy insurance coverage is no doubt a complicated matter. There are many things to consider, such as:

  • what type of surrogacy insurance would be best
  • what is covered by the health insurance
  • the cost of buying the insurance.

Before the surrogacy process was invented, insurance providers covered all pregnancies. But, when the surrogate pregnancy process started to become more popular, the rules also began to change. Today, there are no rules regarding surrogacy insurance and whether an insurance provider has to cover a surrogate pregnancy. These policies vary from company to company. Whether you’re an intended parent or a prospective surrogate, you should understand what is and is not covered before moving forward with a policy.

Usually, surrogacy insurance is handled during the legal contract stage of the surrogacy process. Your surrogacy professional will go through each party’s insurance plans to determine what costs and services may be covered by supplemental insurance policies. Your surrogacy professional will also guide you on how much you will have to pay for the medical costs out of pocket.

While we highly recommend discussing the topic with an attorney, we have prepared a brief detail about surrogacy insurance and how to manage one.

Generally, two aspects of the surrogacy medical process may be covered by insurance:

ACA surrogacy insurance

ACA medical plans are not specifically made to cover a woman if she is going to be a surrogate. She needs a medical insurance plan that does not exclude her from using the maternity benefit of the policy while acting as a surrogate.

Can your surrogate just use her own insurance plan?

Maybe, depending on the situation. You need to carefully evaluate your surrogate’s personal health insurance policy through a qualified insurance specialist with knowledge of the fertility industry who can determine whether your surrogate’s personal plan is enough for a surrogate pregnancy.

Note that many variable factors must be considered throughout a surrogate’s journey. It is essential to work with someone who understands those challenges, special qualifications requirements, and the timeline of enrollment requirements.

A Self Funded or Fully Funded policy, Employer Open Enrollment, or loss of employment are some of the factors that may affect your surrogate’s cycle.

What types of insurance plans are suitable for your surrogate?

Two solid options are available to address the needs of the surrogate’s maternity care.

The first one is a traditional medical insurance plan, typically purchased under the Affordable Care Act (ACA) and is based on the zip code of the surrogate’s residence.

The second option you can opt for is a Surrogate Maternity Contractual Liability Insurance plan which is underwritten by Lloyd’s of London and is not a medical insurance plan. Rather, it covers the Intended Parents’ contractual obligation to pay for the surrogate’s medical expenses and unforeseen events. The plan functions similarly to a traditional medical plan.

How much do you have to pay for the surrogate’s medical insurance?

A surrogate’s medical insurance costs can vary greatly. If you are planning for a traditional plan under the Affordable Care Act, it may range between $11,000 to $15,000, and out-of-network expenses can push the costs even higher.

Prices will be a bit higher if you purchase a Surrogate Maternity Liability Insurance plan and use it as the primary coverage. However, only surrogates carrying a singleton or twin pregnancy are eligible for this type of plan and are not available for someone carrying multiple pregnancies with triplets or more.

The average costs for this type of plan may range from $25,500 to $28,350 for women carrying a singleton pregnancy and $42,500 to $43,350 for a twin pregnancy.

Considering open enrollment

For an Employer Plan Open Enrollment, the national Open enrollment for an Affordable Care Act (ACA) plan takes place once per year, beginning on November 1st and ending on December 15th. Some states allow an extension of this enrollment timeline until January 15th.

Unless a special qualifying event, such as a job change, this open enrollment period is the only time your surrogate can sign up for a new health insurance plan. While you must take your time finding the right surrogate to partner with, remember you may have to wait to begin a cycle until she has secured a plan under the ACA.

How many persons are covered under a surrogate’s medical policy?

Only your surrogate will be covered by her medical policy. Your baby that your surrogate is carrying will be covered only during gestation. Once born, your child will not be considered a dependent of the surrogate mother and thus will not be covered by her insurance. Also, any IVF cycle-related expenses are not covered under this plan.

If you use a Surrogate Maternity Liability Insurance policy, only the medical expenses related to the surrogate pregnancy can be processed through the plan. The plan cannot be used for other medical expenses unrelated to the pregnancy.

What about insurance coverage for the baby

You need to realize that only the surrogate and her pregnancy are covered under this plan and will not cover the baby after birth. This is why you will need to make sure that you notify your health insurance company about the coming birth. They will inform you how to have your baby covered after birth.

Does surrogacy insurance cover compensation payments

No, it doesn’t. Surrogate medical insurance (including Lloyd’s policy) will only cover medical treatment and does not cover the surrogate’s compensation payment.

How to Make Surrogacy Insurance Affordable

While there are many options to pay for surrogacy insurance, it’s a good idea that you are prepared to pay extensive medical costs. Before you embark on a surrogacy journey, understand exactly what will and will not be covered by your insurance provider. Then, sit down and plan for budget and finance appropriately. You may want to consider the following factors to afford the insurance:

  • Loans
  • Grants
  • Fundraising and crowdfunding
  • And other methods of saving money

While not all companies cover surrogate insurance, through proper research and preparation, intended parents can find surrogacy insurance coverage or other financing options that fit their needs to help offset surrogacy costs.

How do you get professional help in choosing surrogate insurance?

Given the intricate terms and technical jargon, medical and surrogacy insurance can be a little overwhelming to comprehend. Hence, the best way is to work with an experienced surrogate professional. They can help you evaluate the surrogate’s current health insurance plan and/or get a new plan if necessary. This helps you have peace of mind and focus more on enjoying your journey together.

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