With the cost of medical care in the United States continuing to climb, it is quite possible that unexpected complications of a premature delivery or other condition can more than double your projected surrogacy costs. NICU costs in the United States can run $5,000 USD per day, and a stay of several weeks is typical if a baby is born a few weeks early.
These high costs are why Intended Parents are required by law to provide health insurance of their surrogate in the United States. It is NOT the case that the surrogate’s own health insurance will provide coverage. Most insurance policies will not cover costs of a pregnancy resulting from a surrogate agreement. Technically, if an insurance policy does not specifically deny coverage in surrogacy cases then it must legally cover those pregnancies — but more and more insurers are explicitly denying this type of coverage.
Fortunately policies are still available that will cover surrogacy pregnancies. These policies typically cost $400 to $500 per month depending on the terms (co-payments and deductibles will heavily influence the policy premiums). Special IVF or ART related insurance is also possible through providers such as NewLife Insurance — but these unique polices are typically exorbitantly expensive.
Insurance for the Newborn
Insurance policies are also available to cove the newborn, although the intended parents’ own insurance typically has provisions for adding new family members for a reasonable cost. All intended Parents should check their own insurance policy (of the national medical plan in their home country) to see how a newborn can be added at a low cost.
The newborn should be added in the third trimester, well before the expected delivery date (to cover a premature birth or any complications that happen at the time of the birth). If insurance is not available before the baby is born, then some supplemental insurance may need to be purchased to bridge the gap between the time of the delivery and the time that the insurance coverage takes effect.
What Surrogacy Procedures are Covered Under Health Insurance?
Currently only 15 states have laws requiring insurance companies to cover infertility treatment — even though about 12 percent of U.S. women of childbearing age have received medical treatment for infertility. Of these states most do not include a basic IVF procedures in their required coverage. No state will require surrogacy procedures to be covered, and only a few insurers will do this voluntarily.
Here is what is and is not generally covered by insurance:
- Typically, insurance companies will not cover the cost of an egg or embryo transfer to a surrogate.
- Rarely do insurance companies cover in vitro fertilization procedures.
- Some private health insurance companies WILL cover the cost of artificial insemination IF the surrogate is using a combination of her own eggs with the genetic father’s sperm.
- Certain insurance companies include a specific clause in their plans that excludes medical coverage for surrogate pregnancies. However, if an insurance company does not specifically state that this type of pregnancy will not be covered, they must by law cover the costs that they normally would if it were a traditional pregnancy.
- In most cases, when dealing with a surrogate pregnancy, the parents of the child will cover the costs not taken care of by insurance.
- It is common for many health insurance companies to cover the cost of the pregnancy, but covering the fertility treatments will be the responsibility of the surrogate or the donor.
- In the case of a surrogacy pregnancy, some health insurance companies will give you the option of adding a temporary policy to your plan to cover the costs of the surrogate, the fertility treatments, as well as the labor and delivery.
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