Surrogate Mother Insurance

When it comes to insurance, every surrogacy agency wants to scream out loud. Why does insurance have to be so difficult? It all seems so unfair, so discriminatory. Infertility is a disease not a choice. What does it really matter who carries the pregnancy? Either way insurance is supposed to pay for the pregnancy because the insured person paid her insurance premiums.

Whether it is the Intended Mother who pays her premiums or the surrogate mother who pays the premiums, why does it matter? Every other woman who has insurance pays her premiums and her pregnancy is covered. Why does it matter if she gives her baby up for adoption, or gives her baby to a family to raise, or to the dad to raise, or perhaps after a few months gives up her baby for adoption or returns the baby to the Intended Mother at birth? What right do the insurance companies have to ask what a woman’s intentions are with regards to her pregnancy and the child she is carrying?

The reality is that insurance companies have decided that they have a right to discriminate against woman and the pregnancy she carries.

Every surrogacy agency has to decide how they will handle insurance issues. There are very few risks to the surrogacy agency when it comes to insurance coverage, but huge risks to the Intended Parents and the Surrogate Mother. It is ultimately either the Intended Parents or the Surrogate Mother who will incur the costs if an insurance company denies payment. Below is an outline of options:

Surrogate mother uses Medicaid to cover her pregnancy. The first question a couple should ask themselves is why they are working with a candidate that qualifies for Medicaid? The next issue is that a surrogate is obligated by law to declare the money she receives from being a surrogate. There may be criminal penalties incurred by failure to report such income. It must be understood that the surrogate may have to deliver at a county hospital.

Surrogate uses her own insurance policy and simply does not inform the insurance company that she is a surrogate. This is perfectly legal – there is no legal obligation to inform an insurance company how a pregnancy was achieved. Two problems arise: first the insurance policy may require that they be notified if a surrogacy relationship is entered into and such a requirement is a term of coverage and therefore agreed to by the insurance holder. Second, it is difficult to keep a secret. It could be a nurse calling to ensure the surrogacy pregnancy is covered, or asking what code she needs to use for a surrogacy pregnancy, or a staff member who is not in favor of surrogacy could call to ask why the insurance company pays for surrogacy pregnancy or the insurance company requests a copy of the medical file and the doctor has handwritten “surrogacy” on the file,

Intended Parents own their own company and “employ” the surrogate and sign her up for their company insurance policy. This option is okay if she is really an employee. Faking employment to obtain insurance coverage is to commit a fraud on the insurance company. In addition the employer must ensure he is offering all benefits offered to other employees, including taxes and retirement contributions. Consideration also needs to be given to the risk factor of a breakdown in the surrogacy relationship and the employment situation.

Lloyds of London insurance policy. An excellent option for couples considering surrogacy. This is an expensive policy and they will not cover a twin or other multiple pregnancy.
Surrogate uses her own insurance policy or a policy she purchases specifically to cover the surrogacy pregnancy.

It is important that you discuss insurance with your chosen surrogacy agency. We highly recommend you take the time to understand your options, the risks and the work the agency is willing to put into insurance.

CSP has 30 years of experience in dealing with insurance issues. In that time we have learned lessons and implemented steps that offer protection to our couples. Our entire 30 years of experience is put into every surrogacy relationship. Not just 30 years selling widgets, but 30 years in the field of surrogacy. NO other agency can promise that.