Whether you’re a surrogate or intended parent, understanding the financial structure of surrogacy
is essential. Everything should be clearly outlined in the legal contract before the journey begins,
but here’s a general breakdown in plain language.
It’s important to know that expenses vary depending on:
– The state
– The agency
– The individual contract
– Insurance coverage
– Whether the arrangement is compensated or altruistic
That said, there are common categories most agreements include.
Expenses Typically Covered in Surrogacy
1. Base Compensation (For Compensated Surrogacy)
If the arrangement includes compensation, the surrogate receives a base fee for carrying the
pregnancy. This is agreed upon before contracts are signed and is paid in installments throughout
the pregnancy.
2. Medical Expenses
Intended parents typically cover all pregnancy-related medical costs, including:
– Fertility clinic appointments
– Embryo transfer
– OB visits
– Lab work and ultrasounds
– Delivery costs
– Hospital stays
If insurance does not cover certain procedures, those costs are usually paid from escrow.
3. Health Insurance Premiums
If the surrogate’s insurance needs to be purchased or maintained specifically for the surrogacy,
those premiums are typically covered.
Some contracts also require maintaining coverage for a set period after delivery.
4. Lost Wages
If the surrogate needs time off for:
– Medical appointments
– Bed rest
– Delivery and recovery
Lost wages are typically reimbursed if outlined in the agreement.
This may also apply to a spouse or partner if they must miss work to provide support during
medical procedures or delivery.
5. Travel Expenses
If travel is required for:
– Fertility clinic visits
– Medical screenings
– Embryo transfer
Covered expenses may include:
– Flights or mileage
– Hotel stays
– Meals
– Transportation
6. Maternity Clothing Allowance
Most agreements include a maternity clothing allowance, typically provided in the second
trimester.
7. Childcare
If the surrogate needs childcare during medical appointments or delivery, those expenses are
usually reimbursed.
8. Life Insurance Policy
Many agreements require a life insurance policy for the surrogate during the pregnancy. The
intended parents cover this cost.
9. Additional Procedure Fees
If certain situations occur, additional compensation may apply, such as:
– C-section
– Carrying multiples
– Invasive procedures (like amniocentesis)
– Bed rest
These are clearly outlined in the contract.
What Is Typically NOT Covered
While most pregnancy-related expenses are covered, there are limits.
1. Non-Pregnancy Medical Care
Medical issues unrelated to the surrogacy pregnancy are not covered.
For example:
– Treatment for unrelated illnesses
– Routine non-pregnancy medical visits
2. Personal Household Expenses
Regular household bills like:
– Rent or mortgage
– Utilities
– Car payments
– Credit cards
are not covered unless extreme medical complications require special arrangements outlined in
the contract.
3. Elective or Non-Medically Necessary Treatments
Optional procedures or treatments that are not medically required during pregnancy are typically
not covered.
4. Extended Lifestyle Changes
Expenses related to lifestyle upgrades, vacations, or non-essential purchases are not part of
surrogacy coverage.
How Payments Are Managed
Most professional arrangements use an escrow account managed by a third party. Intended
parents deposit funds into escrow, and payments are distributed according to the contract
schedule.
This protects both parties:
– The surrogate knows funds are secured.
– Intended parents know payments are handled transparently.
Why Clear Contracts Matter
Surrogacy contracts are detailed for a reason. They eliminate confusion and protect everyone
involved.
Before embryo transfer, both sides review and agree to:
– What is covered
– When payments are made
– What happens in unexpected scenarios
There should be no financial surprises.
Final Thoughts
Surrogacy is a significant financial commitment for intended parents and a significant physical
commitment for surrogates. Clear, legally defined expense coverage ensures fairness, protection,
and peace of mind.
If you’re considering surrogacy, the best step is to speak with an experienced agency and
attorney who can walk you through the details specific to your state and situation.
Transparency from the beginning creates a smoother, more positive journey for everyone
involved.