Surrogacy Costs, Financing and Tax Tips

We understand that pursuing a gestational surrogacy demands significant financial resources. Physician’s Surrogacy remains by your side from start to finish to make sure costs don’t become another barrier.

Surrogacy is on the Rise in US

With one in every five couples suffering from infertility, surrogacy is growing in popularity every day. Between 1999 to 2013, in 30,927 cases of assisted reproductive technology (1.9%) was done using a Gestational Carrier. The number of gestational surrogacy increased from 727 per year in 1999 to 3,432 in 2013. Although there are no official numbers about the amount of babies born through surrogacy in the more recent years, it is safe to assume that the current amount is even higher than this.

Due to the increase of individuals and couples using surrogacy to grow their family, more financing options also become available. We outlined a few different financing options on this page. If you would like to learn more about the financing options or want to get an accurate cost estimate based on your situation and preferences, please feel free to schedule a complimentary consultation.

Surrogacy Costs

Due to the intricate medical procedures and long-term commitment, the costs incurred in surrogacy become substantially high. The fees typically cover for availing surrogacy agency services, legal services and surrogate compensation.

Among The Many Contributing Factors, Intended Parents Generally Pay For The Following

Agency fees ($25,000 – $40,000)
Legal fees ($10,000 – $12,000)
Medical evaluation (varies)
Psychological screening ($1000 - $1500)
Surrogate compensation (managed by agency) ($48,000 – $75,000)
Medical Insurance ($20,000 – $30,000)
Medication costs (varies)
IVF costs ($8,000 – $13,000)
Other fertility clinic fees (varies)
Additional embryo transfer costs (varies)
Additional medical costs (varies)
Donor eggs if needed ($16,500 – $45,000)

Physician’s Surrogacy Fee Structure

With most surrogacy agencies, surrogacy expenses are structured as variable itemized prices, making it difficult to calculate the final price you will pay. This cost structure significantly hampers transparency, leaves chances of confusion, and in some cases where unforeseen circumstances may arise, increases the costs of your surrogacy process.

To overcome these obstacles, we utilize a fixed-price model. Every parenthood journey is unique and requires nurturing accordingly. Through the complimentary consultation, we learn of your situation, what led you to pursue surrogacy, your parenthood goals, your preferences going forward, and what specialized services you require for a successful journey. Based on all these variables discussed during the consultation, we create a price quote so you can confidently know how much the program would cost.

Physician’s Surrogacy Advantages

Physician’s Surrogacy is the only agency you will find in the US where each surrogacy case is managed by Ob-Gyns. Having the top physicians and expert surrogacy professionals by your side grants you several unique benefits.

No Fees Until a Confirmed Match

We offer a complimentary consultation and Surrogate profile review, saving you both time and money. Other agencies will require you to sign an agency agreement and charge between $25,000- $40,000 to begin the surrogacy review process. With us, you will not sign agreements or pay any fees until you find your ideal Surrogate match.

Your Perfect Surrogate is Waiting for You

Having the largest surrogacy program in the nation, there is no wait time to find your perfect Surrogate. You can rest assured our Surrogate Mothers meet all the requirements of surrogacy. Unlike other agencies where you have to wait, on average, 6-18 months to find a Surrogate, our timeline is, on average, one week from consultation to confirmed match.

Stringent Pre-Screening Assures Commitment

Before you start the surrogacy selection process, each Surrogate candidate goes through our stringent physician-designed, comprehensive pre-screening process to ensure she is physically ready and committed to the journey.

Improving Surrogacy Standards

At Physician’s Surrogacy, our specialty is obstetrics, which allows us to establish the highest surrogacy standards in the industry, providing our Intended Parents with peace of mind. Intended Parents can rest-assured with medical confidence

Multilingual Staff

Our multilingual staff ensures that our clients can communicate comfortably in their native language, leading to improved understanding and satisfaction.

OB-ordered Lab Testing

As an OB-managed agency, only Physician’s Surrogacy provides you with the option to elect for additional Antenatal testing. This allows Intended Parents to remain in control of the decision-making and provides reassurance of the healthy progress of your baby.

Financial Certainty

Our surrogacy programs offer both the Surrogate Mothers and the Intended Parents transparency and certainty regarding the costs of surrogacy, financial planning, and how much Surrogate Mothers get paid. Say goodbye to line-item benefits packages, additional fees, and hidden costs with our Flat Rate and Surrogacy Guarantee programs.

Physician-Monitored Reporting

You’ll receive detailed updates from Physician’s Surrogacy rather than the Surrogate, after every appointment. The support team works with Surrogates one-on-one while our in-house doctors and case managers closely monitor the journey.

Financing Your Surrogacy Journey

Intended Parents utilize many approaches to finance their surrogacy journey including savings, personal loans, fertility grants. However, having many choices also presents the challenge to decide which type of financing is right for your cause and preferences.

Here are some really useful surrogacy financing options that many of our Intended Parents benefited from. Our financial coordinators will be by your side at every step and provide all the necessary support, advice and resources.

Personal Savings

Using personal savings can be a great option since you’re not adding debt. We recommend setting up a special account for your journey similar to how you would for college, a new home, or a vacation.

Loans from your 401k retirement fund

Using your 401k can be a quick and easy way to secure funds for your surrogacy journey. If you decide to go this route, make sure to factor in tax consequences and rules when making withdrawals. You can have a look at past jobs and see if there is money in a 401(k) plan that you have not “rolled over.” It is also a good idea to speak with your HR representative before considering this option.

Employer Benefits

There is an increasing number of employers who cover all or some costs of the surrogacy journey. If your employer doesn’t cover surrogacy, they may have benefits for your surrogate’s IVF. Reach out to your HR representative if your employer is one of them.

Physician’s Surrogacy is a proud partner of Carrot.

Surrogacy Grants

There are many organizations that want to help you build your family through surrogacy by helping to finance your journey. These organizations provide non-repayable grants for those who meet their qualifications. Below are some organizations listed, that ease the financial burden:

Pay it Forward Fertility Grants
Baby Quest Foundation
Tinina Q. Cade Foundation Family Building Grant
Family Formation Charitable Trust (AARTA)
Journey to Parenthood Grant
Life Grants

Credit Cards or Personal Lines of Credit from the Bank:

Some Intended Parents choose to make their surrogacy payments through a credit card. You can request either a personal line of credit from your bank or an increased limit on your credit cards.

Second mortgage or loan against the equity in the house

This a great option if you have equity in your home or other properties. Your property secures the loan, making the interest rates more reasonable.

Family and Friends

Many of your close friends and family would love to see you become a parent. Often parents or grandparents want to help but don’t know the best way to support you. This may be an opportunity to ask for financial support.

Fertility specific financing

We have chosen to partner with CapexMD, the specialist in fertility financing. With simple, unsecured financing, CapexMD offers the most competitive funding for surrogacy and related costs in the industry

We Lend Our Hand To Ease Your Expenses

Physician’s Surrogacy has partnered with CapexMD to help Intended Parents secure fertility loans. CapexMD focuses on fertility treatment expenses and has the highest approval percentages. Our partnership allows you to take customized loan programs with highly competitive rates including various types of loan depending on individual case.

Once your loan is approved, our team will work closely with CapexMD’s fertility loan specialists and ensure your funds are in place on time in order to prevent any delay in treatment. Their simple loan process eliminates the financing stresses.

Together with CapexMD, we ensure that financing your surrogacy journey does not hinder the dream of having a baby become reality.

Apply online with CapexMD and receive your pre-approval within 24 hours.

Schedule A Free Consultation

Financing Through Fundraising

Fundraising is one excellent financing option available and there are a lot of ways you can collect significant funding for surrogacy costs. Host an online fundraiser or creative special events.

Below are some fundraising ideas to help you start with:

Host online fundraiser

Intended Parents can set up a free fundraiser through the many online crowdfunding platforms (take GoFundMe for example). One advantage is that you can raise money without any fees, deadlines, or goal requirements.

Simply ask for donations

Let your friends and relatives know you are pursuing surrogacy and ask for donations towards your surrogacy journey instead of birthday or Christmas gifts.

Sell something

You can also sell homemade baked foods, handmade products. Take advantage of online marketplaces such as Etsy. Moreover, you can go on to partner with a sales consultant and ask if they could get a commission from a party you host.

Host an event

You can organize a golf tournament, silent auction, or a car wash and use the profits to finance your journey.

Surrogacy And Taxes

Many Intended Parents find themselves wondering if they can claim any surrogacy related expenses on taxes.

One word answer – yes. You can deduct some surrogacy expenses on your taxes. But, know that the majority of the expenses will not be tax deductible. The tax courts had previously ruled against the taxpayers who were trying to deduct medical expenses related to their surrogate.

What can be deducted?

What cannot be deducted

How You Can Utilize Tax Savings

Use the tax saving accounts for financing

Most employers now offer Health Savings Accounts (HSA) or Flexible Spending Accounts (FSA) and they are used only for medical expenses. The money is pre-tax, meaning you don’t need to pay the government any taxes on the reimbursements that go into these accounts. This can save you worth 40%, depending on tax rate.

Use two financial calendar years

It is best to start the process in the latter part of the year so that you will have two calendar years for planning the expenses. This way you will be able to double the max limits of the health savings accounts. Combining the limits of both year’s savings should give you enough money to pay for the costs.

Private Letter Ruling

The private letter ruling is a private decision from the IRS to give you the ability to deduct the expenses on your tax return only. It does not mean anything to any other taxpayer. Although, most times the deductions are limited, you can now have some great tools to save up a good chunk of money that can be deducted. However, private letter ruling is a lengthy process and most likely won’t work if you are already in the process.

Our Financial Advantages

Our surrogacy program is customized towards your unique journey.

No Unforeseen Costs

Physician’s Surrogacy is fully transparent about the pricing of the process and any additional costs that may occur during your surrogate’s pregnancy. Some surrogacy agencies may lower prices before the contract signing leaving potential additional charges out of the quote but end up charging more at a later date. We make it our priority that our Intended Parents are aware of any potential additional costs that may occur during the journey.

Financial Security

Surrogacy is a medical process. As the nation’s only Ob-Managed surrogacy agency we can control
the financial risks because we prescreen all of our candidates rigorously before initiation of the process.
That ensures that your candidate is mentally and physically fit to do surrogacy. Further, your Surrogate
is managed by our medical director and his advisory board of physicians throughout the whole journey.
That decreases the chances of sudden medical costs to a minimum. Medical oversight is important in
commercial surrogacy which other agencies lack the ability to do so.

No Fees Until A Confirmed Match

We offer a complimentary consultation and Surrogate profile review, saving you both time and money. Other agencies will require you to sign an agency agreement and charge between $20,000- $40,000 to begin the surrogacy review process. With us, you will not sign agreements or pay any fees until you find your ideal Surrogate match.

Schedule a Free Consultation Today!

Want an estimated pricing quote for your surrogacy journey? Simply fill out the form and schedule a call with us.