SURROGACY INSURANCE 101: COVERAGE OPTIONS, GAPS, AND HOW TO PROTECT YOUR JOURNEY

When you are beginning your surrogacy journey, you are not just planning for a baby; you are preparing for one of the most meaningful experiences of your life. Alongside the excitement comes a maze of logistics, and for many intended parents, insurance is one of the most confusing and overlooked parts of the process.

Understanding what’s covered, what isn’t, and how to fill in the gaps is essential to ensuring a smooth, stress-free journey to parenthood. Medical costs can vary widely, and without the right coverage, unexpected bills can quickly add up. But with careful planning, you can navigate through this process with peace of mind.

At Growing Generations, we can help you navigate the insurance process of your parenthood journey. When you understand how surrogacy insurance works and how to make it work for you, you can focus on what truly matters: building the family you’ve dreamed of.

WHAT IS SURROGACY INSURANCE AND WHY DOES IT MATTER

Surrogacy insurance refers to a combination of policies designed to cover medical care and related expenses during the surrogacy process. This includes the surrogate’s prenatal care, delivery, and sometimes postpartum recovery, and coverage for the newborn if complications arise.

Without proper coverage, medical costs for a surrogate pregnancy can exceed tens of thousands of dollars, especially if the policy excludes surrogacy-related care. Insurance ensures both the surrogate and intended parents are protected from unexpected financial strain while maintaining the highest standard of care throughout the journey.

Beyond the numbers, comprehensive insurance provides something invaluable: peace of mind. Knowing your surrogate’s medical needs are fully covered allows everyone to focus on the experience, not the paperwork.

TYPES OF SURROGACY INSURANCE

There’s no one-size-fits-all policy for surrogacy. Instead, most journeys combine several types of insurance to provide complete protection:

HEALTH INSURANCE

This covers the surrogate’s medical care, including doctor visits, prenatal testing, hospital delivery, and postpartum recovery. In some cases, the surrogate’s existing policy already includes maternity benefits that apply to surrogacy. In others, a separate plan must be purchased. Premiums for supplemental coverage typically range from $400 to $700 per month, depending on the state and provider.

LIFE INSURANCE

Every surrogate should have life insurance coverage to provide security for her family in the rare event of a medical emergency. At Growing Generations, we make sure to work with our surrogates to set up proper life insurance coverage at the beginning of their journey.

NEWBORN INSURANCE

Newborn or “baby” insurance covers the infant from the moment of birth until the intended parents can add their child to their personal policy. It’s essential for international and domestic intended parents alike, especially in cases where NICU (Neonatal Intensive Care Unit) may be needed.

While some forms of coverage are optional, health and life insurance are non-negotiable. They safeguard both your surrogate and your family’s financial well-being.

COMMON COVERAGE GAPS TO WATCH FOR

Surrogacy insurance can feel like a maze of fine print and unfamiliar terms. All of these details may seem overwhelming, but you don’t have to navigate this alone. At Growing Generations, we will be there to guide you through every step.

Understanding the most common coverage can prevent stressful surprises in the journey. Even the most comprehensive insurance plans can include hidden exclusions that impact surrogacy coverage. Because every policy is written differently, it is critical to read the fine print before assuming your surrogate’s care or your baby’s birth will be covered. Below are some of the most common gaps and how to spot them early.

1. Maternity Surrogacy Exclusions

Some insurance policies contain specific language excluding any pregnancy carried for another individual or couple. These are known as “surrogacy exclusions.” If this clause exists, the surrogate’s plan will not cover prenatal appointments, ultrasounds, delivery, or hospital stays.

In those cases, intended parents must purchase a new policy designed for surrogacy or arrange a cash-pay agreement with the hospital. The cost of uncovered maternity care can be expensive, depending on the state and hospital system.

2. IVF or Fertility Treatment Exclusions

Many standard health insurance policies do not cover fertility treatments, including in vitro fertilization (IVF) procedures, egg retrievals, or embryo transfers. Since these steps occur before pregnancy, they often fall under separate fertility or clinic-specific financial arrangements.

Intended parents should verify whether their clinic’s IVF fees are covered under any existing medical plan or whether these will be paid out-of-pocket.

3. Multiple Birth Limitations

If your surrogate becomes pregnant with twins or triplets, some plans categorize this as “high-risk” and reduce or deny certain benefits. This can include higher deductibles, limits on hospital days, or reduced coverage for NICU care.

It’s wise to confirm early whether the policy includes specific language regarding multiple births and whether supplemental coverage might be needed in case of multiples.

4. Out-of-Network Hospitals or Providers

Some surrogacy arrangements involve hospitals or specialists outside a policy’s network, especially if the surrogate lives in a different region or state. Out-of-network care often comes with significantly higher costs or limited reimbursement.

Always confirm that your surrogate’s preferred hospital and OB-GYN are considered in-network, and, if not, explore PPO plans that offer broader flexibility.

5. Newborn Care Gaps

Coverage for the baby does not automatically extend from the surrogate’s plan. Once the baby is born, that policy usually terminates coverage. Without a separate newborn or short-term baby insurance plan, intended parents could be responsible for all hospital and NICU costs. It is important to arrange this coverage at least several months before delivery.

Always request a copy of the complete plan document (also known as the Summary Plan Description or SPD), not just the summary of benefits. The SPD includes the exact language that determines whether surrogacy, fertility treatments, or newborn care are covered. A surrogacy insurance specialist can interpret that language and flag exclusions before you proceed.

WHO IS RESPONSIBLE FOR INSURANCE

At Growing Generations, we offer a flat fixed fee insurance coverage to our intended parents. This is finalized at the time of your surrogate match, our insurance facilitation team will work with your surrogate to enroll her in and pay for the associated cost of her insurance for your surrogacy journey. This cost covers in-network, preferred provider, and/or normal and customary insurance rates for the surrogacy journey. Our team will:

• Liaise with brokers to enroll your surrogate in insurance that may be needed for the surrogacy process, including cycle insurance, surrogate accidental death insurance, and maternity insurance.

• Pay using the Client Expense Account for premiums, co-pays, deductibles, liens, and other non-elective medical care expenses that are not covered by your surrogate's insurance.

• Review newborn insurance options and liaise with brokers if coverage needs to be purchased; you will be responsible for insurance expenses related to your newborn's medical care.

HOW TO PROTECT YOUR JOURNEY

Financial clarity begins long before the embryo transfer. By taking early, thoughtful steps, you can protect both your peace of mind and your family-building journey. Here’s how:

1. Review policies early, ideally before matching with a surrogate

Start your insurance review at the very beginning of your surrogacy journey. Once you’ve begun exploring agencies or fertility clinics, request copies of any existing or potential policies for review. This includes both your own health insurance and your surrogate’s plan.

Some policies include language that excludes surrogacy-related care altogether, while others might require additional riders or secondary plans. Reviewing coverage early prevents last-minute surprises and helps you understand what expenses you’ll be responsible for before contracts are signed.

2. Work with a surrogacy insurance specialist

Surrogacy insurance can be uniquely complex. Standard health insurance brokers often don’t understand the nuances of assisted reproduction. Partnering with a surrogacy-specific insurance specialist ensures that every policy is vetted for surrogacy compatibility.

These professionals can identify exclusionary language, recommend supplemental or “gap” plans, and coordinate with your agency and attorney to confirm compliance with both medical and legal standards. Many intended parents find that this guidance saves both money and stress.

3. Confirm coverage after embryo transfer

Once your surrogate becomes pregnant, it is important to verify that the insurance remains active and that maternity care continues to be covered. Policy changes, employment transitions, or updates to insurance providers can sometimes alter coverage unexpectedly.

A quick confirmation post-transfer, usually coordinated by your agency or insurance specialist, ensures that prenatal visits, ultrasounds, and delivery will proceed smoothly without interruption or financial dispute.

4. Establish newborn coverage well before delivery

Hospitals typically require proof of newborn insurance immediately after birth. Without it, intended parents could face large out-of-pocket charges for NICU care or postnatal services.

Whether your baby will be added to an existing family policy, an international plan, or a short-term newborn policy, confirm this coverage no later than the third trimester. Your surrogacy agency can help you determine the right timing and documentation.

Always confirm newborn coverage before delivery. If your baby requires specialized care or an extended hospital stay, prearranged insurance will ensure immediate protection and eliminate administrative delays during an already emotional moment.

FINAL THOUGHTS

At Growing Generations, we believe insurance should be a foundation of confidence, not a source of anxiety. Our dedicated insurance coordination team partners with vetted providers and expert brokers who understand the nuances of surrogacy coverage. Together, we help intended parents make informed choices, eliminate surprises, and protect what truly matters: the well-being of everyone involved.

Your journey deserves the highest level of care, transparency, and protection. With Growing Generations, you can take each step forward knowing your family’s story is backed by decades of expertise.

Contact Growing Generations today to connect with an insurance specialist who can help you review your coverage options and ensure every part of your journey is protected, from the first consultation to the moment you bring your baby home.