Does Insurance Cover Surrogacy? A Guide for Intended Parents

Building a family with gestational surrogacy is an exciting yet stressful time when it comes to balancing your finances.

On top of the emotional and financial stressors for intended parents, navigating your surrogate's insurance options can be nerve-wracking as it heavily involves your surrogate’s health and wellbeing. 

In many cases, traditional health insurance does not cover surrogacy because most plans exclude surrogate pregnancies. However, some surrogates’ personal plans may offer partial coverage, especially if surrogacy isn’t explicitly excluded. Intended parents often need to buy additional surrogacy-specific insurance to ensure full coverage for prenatal and delivery costs.

Does medical insurance cover surrogacy?

In most cases, traditional health insurance does not cover surrogacy-related expenses.

Some insurance plans may allow coverage if surrogacy isn’t specifically excluded, but these cases are the exception, not the rule. That’s why you need to review your surrogate’s insurance policy early in the process.

Your first step should be to consult with an insurance specialist. Ideally, one that is recommended by your surrogacy agency. They can assess whether the surrogate’s existing coverage applies, help you estimate what will be covered, and advise whether additional insurance is needed to fill any gaps.

Understanding what is and isn’t covered will help you avoid unexpected surrogacy costs and ensure your surrogate’s medical care is fully supported.

What if your surrogate has her own insurance?

Some surrogates have personal health insurance that may cover pregnancy-related care only if their plan doesn’t explicitly exclude surrogate pregnancies. 

However, many policies do have exclusion clauses, so this is something that must be verified.

Even if a surrogate’s insurance technically allows coverage, certain plans may include a lien clause—meaning the insurer could seek reimbursement from the intended parents after the birth, viewing surrogacy as a compensated service.

Because of these complexities, most reputable surrogacy agencies will refer you to an insurance expert to review your surrogate’s policy during the screening process.

What costs are you responsible for?

Even with an insurance plan in place, intended parents are typically responsible for all out-of-pocket expenses related to the surrogate’s care. These may include:

• Copayments and coinsurance
  
  
• Deductibles
  
  
• Out-of-pocket maximums
  
  
• Any services not covered by the plan

These financial responsibilities are standard and should be clearly outlined in your legal agreement. 

Your attorney will check that all expected costs are included in your contract and give you a realistic understanding of what to budget for throughout the pregnancy.

How much does insurance cost for surrogacy maternity coverage?

If you have done the math and your surrogate’s insurance plan doesn’t cover surrogacy, fear not! You can choose to purchase comprehensive surrogacy-specific coverage. 

Although this is a great fallback, the cost-effectiveness of this option will vary depending on your unique circumstances.

Surrogacy-specific insurance plans can be expensive. Still, they offer peace of mind and may be more cost-effective than paying for all medical care out of pocket.

If you’re considering cash pay instead of insurance, be cautious. It’s not recommended to proceed without a stop-loss policy in place—a type of backup coverage that limits your financial exposure if complications arise. These policies act as a safety net and can prevent unexpected high medical bills.

When choosing a new policy, it’s also important to confirm that the insurance is accepted by your surrogate’s preferred OB/GYN and delivery hospital. 

You may need to coordinate with both your surrogate and the provider to verify that the chosen plan meets everyone’s needs and keeps out-of-pocket costs to a minimum.

The insurance advisor referred by your surrogacy agency can help you choose the best plan based on your needed services. 

How Surrogacy Insurance Coverage Varies by State and Provider

Surrogacy insurance coverage is not one-size-fits-all. In the U.S., whether a surrogate pregnancy is covered by insurance often depends on where you live and which provider you use.

State regulations impact coverage

Insurance laws related to fertility and surrogacy vary widely across states. Some states are more surrogacy-friendly and have mandates for broader reproductive care coverage, while others may allow insurers to exclude insurance for surrogate pregnancy entirely.

• Surrogacy-friendly states like California and Connecticut tend to have more flexible policies and providers familiar with surrogacy cases.
  
  
• In contrast, some states allow insurance companies to explicitly exclude surrogacy from maternity coverage, making it harder to rely on an existing plan.

This legal patchwork means that intended parents must carefully review both their and the surrogate’s policies.

Coverage also varies by insurance provider

Even within the same state, surrogacy insurance cost and eligibility can differ significantly between providers. 

Some major insurers may offer partial or full maternity coverage for surrogate pregnancies, but only if there is no exclusion clause in the surrogate’s plan.

Here are a few common examples:

• Employer-sponsored plans might offer better coverage, but many contain exclusions for gestational surrogacy.
  
  
• Marketplace plans (ACA) vary by state and provider; a careful review of the benefits summary is a must.
  
  
• Private surrogacy insurance plans are specifically designed for these situations but come at a higher cost.

FAQs About Surrogacy Insurance

Does insurance cover surrogacy in the U.S.?

In most cases, traditional health insurance does not fully cover surrogacy in the U.S. While some plans may include partial maternity coverage for a surrogate pregnancy, many contain specific exclusions. 

Coverage depends on the surrogate’s policy, state regulations, and the insurer’s stance on compensated surrogacy arrangements.

Will my health insurance cover a surrogate pregnancy?

Your health insurance typically will not cover medical costs for your surrogate’s pregnancy. 

Most insurance plans only cover maternity care for the policyholder or their dependents. As the intended parent, you’ll likely need to explore other options, such as a surrogacy-specific insurance plan.

What kind of insurance do surrogates need?

Surrogates ideally need a health insurance policy without exclusions for surrogate pregnancies. 

If their current plan covers pregnancy and does not contain a surrogacy exclusion clause, it may be usable. 

Otherwise, intended parents need to purchase a new plan or supplemental surrogacy insurance coverage to protect both the surrogate and themselves from unexpected costs.

Do I need to buy additional insurance for surrogacy?

Yes, many intended parents purchase additional insurance for surrogacy. This may include:

• A full surrogacy-specific medical insurance plan
  
  
• A stop-loss policy to cap financial risk
  
  
• A newborn insurance policy to cover the baby after birth

These policies manage the high surrogacy insurance costs and offer peace of mind in case of complications or gaps in the surrogate’s original coverage.

Explore your surrogacy insurance options  

Don’t let worries of cost stop you from growing the family of your dreams. Though surrogacy is expensive, Hatch Egg Donation & Surrogacy provides surrogacy that strives to be inclusive to many families' fertility needs and budgets.

Book a consultation to connect with a financial advisor to discuss payment options, such as long-term payment plans, split payments, and surrogacy insurance options. Our team is excited to be a part of your fertility journey.