Health Insurance Considerations in International Surrogacy
Embarking on an international surrogacy journey is exciting, but it also comes with important financial and legal considerations. One of the most critical pieces is health insurance—both for your surrogate and your future child. Understanding how insurance works in the United States is key for international intended parents, especially since insurance systems abroad often look very different.
Disclaimer: The information below is for educational purposes only and does not represent legal or insurance services provided by Klein Fertility Law.
Insurance Coverage for Surrogacy in International Arrangements
Health insurance plays a very important role in surrogacy. In most cases, coverage must be carefully reviewed and sometimes supplemented to avoid unexpected costs.
Typical expenses that an insurance policy should cover include:
- Prenatal care for the surrogate
- Labor and delivery hospital charges
- Postnatal care for the surrogate
Potential exclusions or limitations often include:
- Clauses that specifically exclude coverage for a surrogacy pregnancy
- Infertility treatments (IVF, egg retrieval, embryo transfer)
Key terms to know:
- Premium – the amount paid monthly for insurance coverage
- Deductible – what must be paid out-of-pocket before insurance begins covering costs
- Out-of-pocket maximum – the most you would pay in a year for covered services
- Copay/coinsurance – your share of costs for specific services
Navigating Surrogacy Insurance in the US Healthcare System
The U.S. healthcare system can be very complex to maneuver through. Unlike many countries with nationalized healthcare, the U.S. system is largely private, with multiple providers and coverage levels.
Comprehensive coverage is essential during a surrogacy arrangement. Many intended parents will end up purchasing a private health insurance policy for the gestational surrogate and for their newborn baby.
Health Insurance for the Surrogate
- Some surrogates already have health insurance through their employer or their partner’s employer, but not all plans will cover a surrogacy pregnancy. In fact, some insurance policies will totally exclude coverage for a surrogacy pregnancy.
- Insurance policies should be reviewed carefully to confirm whether surrogacy related medical expenses are included or excluded.
If surrogacy pregnancy coverage is specifically excluded, intended parents will need to purchase a supplemental or new insurance policy.
Utilizing the gestational surrogate’s insurance plan can save costs, but only if it has been confirmed that her personal insurance policy will cover medical expenses related to a surrogacy pregnancy.
Health Insurance for the Baby
It is important to speak with an insurance expert specializing in newborn baby insurance specifically in a surrogacy arrangement. Your baby will need an insurance policy in place prior to delivery to help mitigate the medical expenses associated with their time at the hospital and any follow-up medical appointments necessary prior to your departure back to your home country.
Other Types of Insurance
Beyond health insurance, many families should also consider additional protections:
- Accidental Death Coverage for the surrogate
- Short-Term Disability coverage to replace income and/or childcare and housecleaning expenses due to doctor ordered bedrest for the gestational surrogate.
- Loss of Organs coverage in the event that the gestational surrogate loses an organ as a result of the surrogacy pregnancy/delivery.
- Monitoring Insurance is helpful in reducing the cost of the gestational surrogate’s monitoring appointments during the IVF cycle.
- Miscarriage, Stillbirth, or Infant demise policy will provide financial stability in the event that something unexpectedly happens during the surrogacy journey.
Legal Considerations and Requirements
In some states within the United States, it is a legal requirement to purchase a health insurance policy for the gestational surrogate. Regardless of state laws, it is recommended to always secure a health insurance policy for the gestational surrogate that will help cover medical expenses associated with a surrogacy pregnancy. It is important to speak with a legal expert like those at Klein Fertility Law to understand your legal obligation. Because intended parents are legally responsible for their child’s healthcare expenses, it is important to secure a health insurance policy for your newborn baby.
Working with a Surrogacy Lawyer / Law Firm ?
While fertility lawyers are not insurance experts, a surrogacy law firm can help you understand your options and help coordinate with insurance specialists and agencies
Health Insurance and Surrogacy FAQs
Learn More About Surrogacy and Health Insurance
Health insurance is a very important aspect of international surrogacy planning. By understanding how coverage works in the U.S., verifying policies, and working with knowledgeable professionals, you can better protect your family and your surrogate.