How to Cut Down on the Costs of Surrogacy for Intended Parents

Between 1999 and 2013, 18,400 children were born via surrogacy in the United States.

The use of surrogates to start a family is becoming more popular, but it’s still an unfamiliar process for many people who often view it as expensive and out of reach.

If you’re reading this, then you’ve probably spent a lot of time dreaming of starting a family. Perhaps your journey toward surrogacy — often referred to as third-party reproduction — has been a long one, filled with failed attempts to get pregnant and frustrating medical diagnoses. Or, perhaps your situation is such that surrogacy has been your best option from the beginning.

Regardless of how you’ve arrived at surrogacy, you’re here now. You’re eager to decorate a nursery, pick names and hold your child in your arms for the first time. In short, you’re eager to become a family. But, if you’re like many of our clients, the financial cost of surrogacy can be daunting.

These questions and uncertainties are all a normal part of this process. But the good news is there are many ways intended parents can reduce their costs without compromising their finances or the quality of care they receive throughout the process.

What Is the Cost of Surrogacy?

Surrogacy is the process of selecting a woman to carry a child on behalf of another. That woman undergoes IVF to become pregnant and then carries a child for nine months before giving birth and then giving the child to its intended parents. Surrogacy is increasingly considered as a viable option for couples experiencing infertility, as well as single women and same-sex couples who want to start a family.

One of the big myths surrounding surrogacy is that it’s only for the wealthy. While there is a price tag attached to surrogacy, it’s not just an option for those with deep pockets.

There’s no way to put a specific number on the cost of surrogacy. It varies among agencies and the states where they reside. It depends on the amount and type of treatments needed for the surrogate to become pregnant, as well as whether or not insurance — hers or yours — is willing to cover any medical costs.

Besides that, surrogacy pricing can vary depending on a variety of factors, including:

Location of the surrogate mother relative to the intended parents
Medical costs, including IVF and egg donation
Legal fees
Agency fees
Surrogate compensation
Anticipated travel costs to bring baby home
State regulations regarding any or all of the above

Because of all the variables surrounding surrogacy, it’s impossible to put a price on it. This is why it’s critical to work with a reputable agency. Your agency can — and should — work with you to develop a plan that will outline all of the costs associated with your specific needs and goals in mind.

Contractual vs. Compassionate Surrogacy

Traditionally, there are two different types of surrogacy agreements — contractual and compassionate. A contractual surrogate is selected after going through a lengthy process and typically has no connection with the intended parents. A contractual surrogate receives compensation for the fees associated with pregnancy and birth, including medical fees, legal fees, travel expenses and lost wages. The parents typically don’t know her before an agency matches them, nor do they expect her to play a significant role in their family life once the baby is born.

A compassionate surrogate is a family member or close friend who agrees to carry a baby. In cases like this, a compassionate surrogate may still be reimbursed for medical and legal fees. However, she does not ask for a surrogacy fee or any additional fees beyond the expenses she incurs.

Why is it necessary to understand the difference?

Some couples do opt to work with a surrogate they know, and this can be a significant cost saving measure for them. However, most people don’t have the option to ask a friend to carry their child, and they need help finding a healthy, trustworthy surrogate who can safely care for their baby throughout the pregnancy.

Reducing the Cost of Surrogacy

Once you’ve established that you’ll be working with a contractual surrogate, most couples have a clear idea of what they’re facing financially. Once those numbers are on paper, it’s natural to start wondering if there are ways to reduce your costs without compromising the health or safety of your child — or your surrogate.

One of the first ways to keep costs under control is to make smart choices about your finances and where your money goes. How can you do that?

1. Choose a Reputable Agency

Choosing an agency to work with should first and foremost be about their reputation and their commitment to excellence. At the Western Fertility Institute (WFI), we pride ourselves on our team of experienced medical professionals who are known as much for their compassion as their medical acumen.

However, as important as it is to select an agency you’re comfortable with, it’s also necessary to evaluate an agency’s programs, costs and fee structures. Make sure you understand exactly where the money is going and ask a lot of questions about anything that might not be included in the agency’s fees.

2. Talk With Your Insurance Company

Find out what — if any — medical costs your current insurance will cover for your surrogate and the baby. If it’s not enough, then research other insurance options to find a policy that will reduce your out-of-pocket medical fees. You can also inquire about your surrogate’s current medical coverage. In some cases, a surrogate’s insurance company will cover certain medical expenses associated with her ongoing care before and during the pregnancy.

3. Start Saving

If you’ve decided that surrogacy is the path you can take, it still may be several months before you’re matched with a surrogate and the process begins. It’s never too late to start putting money aside. Use this waiting time to save money to help with costs once the process really gets going. Besides helping offset costs that come up during the surrogacy process, this can be a fun way for you to start getting excited about your family’s new addition.

4. Find Support

It’s essential to have the emotional support of others who’ve gone through the surrogacy process. Finding others to walk through the process with you will help you as you navigate surrogacy. It’s also a great way to get information about scholarships, funding opportunities and other ways to stretch your money when you opt for third-party reproduction.

Fundraising

Many families also offset the costs of surrogacy with fundraising. Yes, it can feel awkward asking for money. But when you get creative with it, you’re also creating opportunities for your friends and family members to become involved in your journey to starting a family. We’re not advocating for you to bug people for money, but there’s nothing wrong with coming up with a few creative ways to ask for help.

1. Start an Online Fundraising Page

Before you ask for donations in any form, set up a fundraising page where you can direct friends and family who want to donate. It’s also a good way to keep track of your progress as you move forward. Crowdfunding pages are an easy way to get started and some don’t require you to pay to use their services. Another great thing about an online fundraiser is that it allows your friends and family to spread the word on your behalf, opening the possibility of others donating to your cause as well.

2. Ask for Money Instead of Gifts

Spread the word to friends and family that instead of birthday or holiday gifts, you’d prefer they donate to your surrogacy fund. Just remember to acknowledge these gifts with a note or phone call expressing your appreciation.

3. Plan an Event

While online fundraising is an easy option, there’s something to be said for a good ol’ fashioned fundraiser, such as a spaghetti dinner or car wash. Ask local businesses or nonprofits to chip in by lending you a space to hold your event or free food to serve the people who show up. This is where a network of other families who’ve used third-party reproduction can come into play. Ask around for good fundraiser ideas and make sure to invite them to join in the fun!

4. Find a Side Hustle

Another great way to offset the costs of surrogacy is to find a second job that provides you with a little extra cash you can set aside into that savings account we mentioned earlier. We’re not suggesting working an additional 40 hours a week, but try finding a gig that only requires a few hours each week. If you’re creative, consider setting up an online store and selling your creations — jewelry or stationary or wood carvings. If you’ve got a professional skill, such as editing or accounting, that’s in high demand, look into taking on an extra client or two on the side if your current job allows it.

Surrogacy Grants

Another option that many people aren’t aware of when they begin their surrogacy journey is the availability of surrogacy grants. A grant is a financial award given to someone who meets a certain set of criteria. A grant does not have to be repaid later and can go a long way toward offsetting the costs associated with surrogacy. You can go online and search for funding opportunities or if you want to save time, check out this list of potential sources of funding for surrogacy.

Financing

The very word “financing” can be daunting for some people. After all, it seems odd to use that word in a conversation discussing the birth of your child. But think of it this way — every expectant parent has certain upfront costs associated with bringing a child into the world. Children are expensive no matter how they’re born. Once you’ve earned, saved and raised money, there can still be a shortfall, especially if you’ve opted for surrogacy.

It’s important to weigh your options with your agency as you determine both the short- and long-term implications of borrowing money. Unlike fundraising and grants, borrowed money must be paid back, so you should never borrow more than you can comfortably return later. While we’d never advocate for irresponsible financial decisions, we do make our clients aware of the financing options available to them if necessary.

If you are considering financing some or all of your surrogacy journey, there are a few common options to consider, including:

1. BetterCard

Rather than use a traditional credit card with high interest rates, we recommend our clients apply for the BetterCard, a medical credit card with a low 3.9% fixed interest rate. This card can be used for a variety of medical-related expenses, including prescriptions, hospital bills and insurance premiums. And, if needed, you can defer payments for up to two years interest-free.

2. Fertility Financing Loans

Some financial organizations specialize in providing loans for intended parents going through infertility treatment, including those who choose surrogacy. If you’re interested in this route, check with your agency to make sure you select a reputable company and receive competitive rates.

3. Home-Equity Loans and 401(k)

For intended parents who own their own home, it may be possible to access some of the equity you’ve built up in your home or retirement account to finance surrogacy-related expenses. However, we strongly caution intended parents to make wise decisions when pursuing these options. For a home equity loan, you’ll need to have a strong credit report and, if you borrow from your 401(k), you’ll need to have a plan for paying it back down the road.

A Word of Caution

You’ve no doubt spent a lot of time online researching surrogacy — both the process and the costs involved. In your research, you have most likely come across a lot of information about overseas surrogates. While the appeal of a lower up-front price tag is no doubt appealing, there are often many additional costs that aren’t factored into that, including additional legal fees, medical expenses, travel fees and other costs associated with establishing citizenship and traveling with your new child. Beware of anyone claiming to offer reduced rates and always make sure you know all costs that will be involved before beginning the process.

Surrogacy Costs and Western Fertility Institute

When you’re beginning your surrogacy journey, choose an experienced, compassionate team of professionals to work with you throughout the process. Western Fertility Institute has an 86% surrogacy success rate but, more than that, we’re known for our team of experienced and compassionate professionals who are dedicated to helping you achieve your dream of becoming a parent.

Located in Los Angeles, WFI offers each of our clients a committed team of professionals. From our first meeting until that baby is placed in your arms, we’ll be with you every step of the way. Yes, we can help you as you navigate the financial side of surrogacy, but we do so much more than that. At WFI, we’re committed to providing the emotional, legal and medical support you need every step of the way. We can connect you with the best surrogate for your family and then help you work together throughout her pregnancy.

Many times surrogacy also requires egg donation, which means that you’ll also want to know you’re working with a team who can walk you through that process as well. WFI’s frozen embryo transfer success rate is 81%, offering hope and encouragement to prospective families.

If you are considering surrogacy, we’d love to answer your questions and help you get started. Contact us today for more information on our live birth guarantee financial packages.