Surrogacy insurance is a critical part of planning your surrogacy journey, and one of the most misunderstood. Many intended parents start by asking, “Does insurance cover surrogacy?” The answer depends on the type of insurance, the specific policy language and recent changes in fertility coverage laws.
While new laws like California’s SB 729 expand insurance coverage for infertility treatments such as IVF, surrogacy‑related medical care (including prenatal care, delivery and postnatal needs) usually requires specialized policies designed for surrogate pregnancies and newborn protection. Understanding the difference between standard health benefits and surrogacy insurance can help you avoid unexpected costs and plan your journey with confidence.
TL;DR? Here’s The Basics
- Most traditional health insurance plans exclude surrogate maternity care, including prenatal care and delivery.
- Some ACA‑compliant plans may include maternity benefits, but coverage can apply differently in surrogacy and often requires careful policy review.
- Laws like California SB 729 expand insurance coverage for infertility treatment and IVF, but do not cover the medical costs of a surrogate pregnancy.
- Intended parents typically purchase specialized surrogacy insurance to cover medical care, complications and newborn needs not covered elsewhere.
- Life insurance for surrogates is standard practice and protects the surrogate’s family.
- Understanding surrogacy insurance early helps intended parents plan ahead and avoid unexpected costs during the journey.
1. Most Traditional Insurance Plans Do Not Cover Surrogacy
When researching surrogacy insurance, one of the first things intended parents learn is that most traditional health insurance plans exclude coverage for surrogate pregnancies, even if the surrogate has a private or employer-sponsored policy.
This can be surprising and frustrating, especially when the assumption is that maternity care is universally covered. But in most cases, standard insurance policies are only designed to cover the insured individual or their dependents, not a pregnancy carried on behalf of someone else.
Why Surrogacy Is Often Excluded
Insurance plans often contain specific exclusion clauses, such as:
- “No coverage for maternity care of a surrogate.”
- “Services related to gestational carrier arrangements are excluded.”
- “Expenses are not covered if the policyholder is not the legal or biological parent.”
Because of this, intended parents are usually responsible for arranging additional or specialized insurance that covers surrogate medical care during pregnancy, labor and delivery. Failing to plan ahead can result in high out-of-pocket costs, especially in the event of complications.
2. Affordable Care Act Plans and Surrogacy Coverage
ACA marketplace plans must include maternity and newborn coverage for the policyholder and covered dependents. In a surrogacy journey, that generally means any maternity coverage is tied to the surrogate’s plan, not the intended parents’ insurance.
If the surrogate has an ACA-compliant policy in her own name, and the plan does not include surrogacy-related exclusions, her pregnancy and delivery may be covered like any other maternity care, even though she is carrying for intended parents.
If the surrogate does not already have qualifying coverage, an ACA marketplace plan is often purchased in her name to provide prenatal and delivery coverage. Intended parents may pay the premiums, but the policy must remain in the surrogate’s name, with the surrogate as the policyholder.
The complication is that many marketplace and employer plans do include exclusion language for gestational carrier arrangements. Because this language varies widely by carrier and state, it is essential to review the full policy line by line before relying on it.
3. Intended Parents Often Purchase Specialized Surrogacy Insurance
Because many traditional and ACA marketplace plans include exclusions or gaps for pregnancies carried as a surrogate, intended parents often purchase specialized surrogacy insurance to fill in what isn’t covered by the surrogate’s own policy.
These policies are designed specifically for gestational surrogacy and help ensure that both the surrogate’s and the baby’s medical needs are covered from embryo transfer to delivery and beyond.
This type of surrogacy insurance is a key financial safeguard, especially for intended parents outside the United States who need reliable coverage during the pregnancy. Learn how Joy of Life supports international intended parents.
What Specialized Surrogacy Insurance Typically Covers
- Prenatal and delivery care for the surrogate
- Medical complications related to the pregnancy
- Newborn care, including NICU or unexpected hospital stays
These policies can be purchased independently through a third‑party broker or arranged with your surrogacy agency, depending on your specific situation and the surrogate’s existing coverage.
How Specialized Surrogacy Insurance Protects Both Parties
Surrogacy insurance helps protect intended parents from high, unexpected medical bills while ensuring the surrogate has access to appropriate care without financial stress. Having the right combination of the surrogate’s own coverage and surrogacy‑specific policies in place brings clarity to the process and helps both parties feel more secure throughout the journey.
4. Life Insurance for Surrogates Is a Standard Practice
Life insurance is a critical safeguard in any surrogacy arrangement, and in most cases, it’s not optional. Reputable surrogacy agencies will require that a life insurance policy be in place before an embryo transfer. It’s part of responsible planning and ensures that the surrogate’s loved ones are financially protected in the rare event of a life-threatening complication.
Why Life Insurance Is Required
While the major medical risks of surrogacy are low, pregnancy always carries some level of risk. For that reason, life insurance is a mandatory component of most agency-led surrogacy journeys. Agencies typically coordinate the policy selection process to ensure that coverage terms are clear, appropriate, and specifically aligned with the surrogate’s personal needs. This provides peace of mind and legal protection for both the surrogate and the intended parents.
Typical Coverage Ranges
Surrogate life insurance policies typically provide coverage amounts ranging from $250,000 to $750,000, which would be paid to the surrogate’s designated beneficiary in the event of her death.
While these coverage limits are high to ensure meaningful protection, the cost to intended parents is significantly lower and typically a one-time premium determined by factors like the surrogate’s age and health.
Your agency or insurance broker will help secure a policy that meets industry standards and ensures peace of mind for all involved.
5. A Reputable Agency Helps You Navigate Insurance Requirements
Surrogacy insurance can be complex when multiple policies, legal requirements and medical needs overlap. That’s why working with a reputable surrogacy agency is one of the smartest steps intended parents can take.
While agencies don’t sell insurance directly, they provide essential support in helping you understand what coverage is needed, what’s not included in typical plans and how to budget for every phase of the journey.
How Intended Parents Can Avoid Surprise Costs
From maternity care to newborn health coverage, many surrogacy-related expenses fall outside of standard health insurance. A knowledgeable agency will:
- Review your surrogate’s health insurance (if any) to identify exclusions.
- Connect you with licensed insurance professionals for policy recommendations.
- Help you understand how surrogacy-specific plans work and when they’re required.
- Flag potential out-of-pocket costs, such as deductibles, complications or NICU care, early in the process.
By planning ahead and working with trusted experts, intended parents can minimize financial uncertainty and focus on the exciting journey ahead. Understanding the costs of surrogacy from the start is key to avoiding inconvenient surprises along the way.
Explore the Next Steps in Your Surrogacy Journey
Whether you’re just beginning to explore surrogacy or preparing to take the first step, understanding how insurance fits into the bigger picture is key. At Joy of Life, we help intended parents navigate the surrogacy process with clarity, care and expert support, from insurance questions to holding your baby for the first time.
Ready to learn more? Start your journey by applying to become an intended parent today — we’ll be here with you every step of the way.
