Surrogacy and Health Insurance Coverage Opinion Letters

Nevada Surrogacy Lawyer Explains What You Need to Know About Your Insurance

The intended parents’ need for health insurance to cover a surrogate in a gestational carrier agreement is of critical importance. This is because the surrogate’s medical bills are usually the responsibility of the intended parents. Health care costs for complications of pregnancy for a surrogate can easily and quickly reach $100,000. Furthermore, these costs have been known to reach a half a million dollars or more. Without surrogate insurance coverage, the risk of financial catastrophe for the intended parents, is very real.

First, Is Surrogacy Covered by Insurance?

If intended parents want to avoid personal liability for the surrogate’s health care expenses, the standard method is to get the surrogate health insurance. Thus, the first issue becomes whether the surrogate’s current policy covers acting as a surrogate. If not, the intended parents may need to purchase insurance that does.

While there are some policies that expressly cover gestational surrogates, they are not typical. More commonly, health insurance policies often state they do not cover surrogacy related expenses. On the other hand, some policies have no provisions on the subject. Because of this, if an intended parent wants health insurance for the surrogate, the parents need a “health insurance coverage opinion letter.”

What Is an Insurance Coverage Opinion Letter for Surrogates?

A well-written insurance coverage opinion will contain all policy provisions impacting the issue and an explanation as to their meaning. It will also include a statement of the jurisdiction(s) likely to interpret and to enforce the policy. Furthermore, it should review all court cases of those jurisdictions, as well as the applicable laws of those states.

The insurance coverage opinion letter will give a clear statement as to whether insurance coverage exists, or it will state what additional information you need to answer the question. In situations where you cannot give a clear answer, it will explain why the answer is not available. In these cases, it will also give the author’s reasoned opinion as to what a court considering the issue may do.

Lawyers that specialize in insurance coverage typically write insurance coverage opinion letters. However, recently, insurance agencies also started providing these opinion letters in the area surrogacy. Intended parents need to make sure they can rely on the insurance coverage opinion letter they receive.

We question the reliability of coverage opinion letters if they leave out the above information or if they include the below:

  • Coverage opinions that include an offer of the writer to sell the writer’s health insurance coverage to the intended parents
  • A letter which gives an opinion but also includes a disclaimer that you cannot rely on the opinion

Questions About Surrogate Insurance Coverage? Ask a Nevada Surrogacy Lawyer

Of course you want your surrogate to have health insurance to protect her, the baby and your family. However, it is not always easy to get. If you need a health insurance coverage opinion letter or if you need a lawyer to review a letter you received, please call us. Attorney Eric A. Stovall is a former insurance agent and is now a Nevada surrogacy lawyer. He understands the legalese of these letters from both perspectives. You can call our law office at (775) 337-1444. We have offices in Reno and Las Vegas.

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