Does Insurance Cover Surrogacy? What Intended Parents Should Know

Health insurance does not typically cover the full cost of surrogacy, and what is covered—if anything—depends heavily on the policies belonging to both you and your surrogate. For intended parents, this can be one of the most confusing parts of the journey. 

Coverage rules vary by state, by insurer, and by whether a surrogate's plan allows or excludes surrogate pregnancies, which makes it essential to understand the fine print early on. Knowing how these policies work helps you prepare financially and map out a realistic plan for your surrogacy process.

Are Clinic Costs Covered by Insurance for Intended Parents? 

Although some states are expanding fertility coverage, treatment costs for surrogacy may not be covered by insurance for intended parents. Even when a plan offers fertility benefits, these benefits may only apply to policyholders. 

Many times, the cycle costs associated with embryo transfer are paid for directly by the intended parents. Because every policy is different, it's important to review your individual plan carefully or speak with your insurance provider to understand exactly what is and isn't covered. 

Who Covers the Costs During the Pregnancy? 

The intended parents are responsible for the medical costs of the pregnancy, but how those costs are billed depends on the surrogate's insurance coverage. If your surrogate has her own health insurance and the plan does not exclude surrogate pregnancies, many routine prenatal and delivery-related expenses can be billed to her insurer. 

In these cases, intended parents generally cover any out-of-pocket costs, such as deductibles, co-pays, medications, or tests not included in the plan. Many IPs will secure a surrogacy-specific or supplemental insurance policy to cover pregnancy-related care. However, these policies often require enrollment during limited windows, so timing is a key part of the planning process.

What Insurance Typically Doesn't Cover 

Even when a surrogate's policy provides some pregnancy coverage, many expenses fall outside traditional insurance. Intended parents should expect to pay for: 

• Surrogate compensation 

• Agency or concierge service fees 

• Legal contracts for both parties 

• Escrow management 

• Travel, lodging, or monitoring not covered by insurance 

• Certain prenatal tests, medications, or delivery-related costs 

• Newborn care coverage for international intended parents 

• A life insurance policy for the surrogate 

These costs are standard in surrogacy arrangements and are not typically included in traditional insurance coverage.

Reducing Financial Risk in the Surrogacy Process 

While there are many unknowns in this process, our team helps you anticipate challenges and move through each stage with confidence. We’re here to guide you, answer questions, and connect you with trusted industry experts along the way. Our Parent Choice Model also protects you from making any financial commitments to an agency or candidate until after your clinic has reviewed her records and you’ve had the chance to meet on a Match Call.

Take the Next Step Toward Building Your Family  

Whether you’re just starting to explore surrogacy or are further along in your journey, thinking about insurance early and engaging with our team can save you some stress. Our expert guidance can help you make sense of it all, including your financing options. 

Donor Concierge is here to help you understand the financial landscape of surrogacy and find the right match for your family. Schedule a consultation with our team today to get started.