Does Insurance Cover Surrogacy?

Insurance is an important part of a surrogacy journey.  While having insurance is not a requirement to become a surrogate, it is an essential part of the journey.  Some surrogates already have insurance policies through their employer, their partner’s employer or they may have purchased a policy independently or through a third-party broker.  Many of these insurance policies, when reviewed thoroughly by an insurance professional, can be used once a surrogate is pregnant and is under the care of an Obstetrician.  If a surrogate doesn’t already have insurance when starting her journey, that’s ok!  With the help of an agency like Hatch, we can help you look at all the available insurance options, so you can make the best decision for your journey. 

Knowing what insurance does and doesn’t cover can vary from plan to plan.  Policy language for most insurance plans can be quite tricky regarding surrogacy, so all insurance plans for surrogates should be professionally reviewed by an insurance professional. What does insurance cover for a surrogate? Insurance will typically cover the medical costs of the pregnancy, delivery and postnatal visits for the surrogate.  Insurance will not be used to cover her care before becoming pregnant and cannot be used to cover any fertility treatments for her at an IVF clinic or while under the care of an IVF doctor.

These will of course vary, depending on the plan. Please check with an insurance professional before using any plan.

There are also surrogate maternity-only policies that are designed specifically for surrogacy that can be purchased if a health insurance policy isn’t approved to be used for the journey or if one is unable to be obtained.  These maternity-only plans can be used in lieu of a private insurance plan or in addition to another plan, as a back-up or a “bridge-the-gap” plan. Like most insurance plans, there are exclusions to what these maternity-only plans will cover, but they do cover most ultrasounds, non-stress tests and prenatal and postnatal visits with an Obstetrician. 

Will a surrogate’s maternity insurance cover the newborn?  Once the baby is born, all their care will need to be covered by the Intended Parents.  This can be done by adding the baby to the Intended Parent’s existing medical insurance plan after they are born, paying for their care with cash, or by obtaining another insurance plan designed specifically for Intended Parents to cover newborn care. Some brokers & companies offer special newborn plans that are only available to international Intended Parents.

How do I know which maternity insurance plan is the best?

At Hatch, we rely on third-party insurance professionals to help us determine if an insurance plan can be used for a surrogacy journey or if an additional plan needs to be purchased. This is a step that shouldn’t be skipped, as these professionals would be able to tell you about your specific plan and what it will and won’t cover.  

*Kaiser insurance and other plans like Sutter Health will typically cover a surrogacy with the possibility of a lien. A lien indicates that the insurance company reserves the right to require Intended Parents to pay up to or all the surrogate’s compensation back to them in exchange for covering the maternity medical bills. These plans have been used successfully historically, but being prepared ahead of time with the funds needed in escrow to fully cover the lien before a journey is started is vital and will be required per your contract.

There are many things to consider when exploring whether insurance covers surrogacy.  Health insurance coverage is ultimately essential for a surrogacy journey as it helps keep the surrogate healthy and supported during the pregnancy.  It also helps control costs for Intended Parents, who are already making a sizable financial investment to grow their families through surrogacy. Many ethical agencies like Hatch will guide you through this process from start to finish, while consulting with various third-party professionals so you are fully supported and informed throughout your journey.