How Much Do Surrogates Make? A Breakdown of Compensation
Unpack the complete financial picture of surrogate compensation, from typical earnings to the factors and process involved.
Surrogacy offers individuals and couples the opportunity to build families. For the gestational surrogate, this journey involves significant personal dedication, time, and physical demands. Financial compensation acknowledges these efforts, forming a crucial component of the overall surrogacy process. This compensation is a comprehensive package designed to support the surrogate throughout her journey.
Understanding Base Surrogate Compensation
Base compensation is the primary financial component a gestational surrogate receives, recognizing her time, physical commitment, and the inconvenience of pregnancy. This payment is distinct from other reimbursements and functions as the core fee for carrying the pregnancy to term.
For a first-time gestational surrogate in the United States, base compensation ranges from $35,000 to $50,000. Experienced surrogates, often called “journeyman” surrogates, receive higher compensation, potentially reaching $60,000 to $80,000 or more. The precise amount can vary based on several influencing factors.
Base compensation is considered taxable income by the Internal Revenue Service (IRS). While a Form 1099-MISC may or may not be issued, surrogates are generally expected to report this income on their tax returns.
Factors Influencing Compensation Amounts
Several variables influence base surrogate compensation. Geographic location plays a significant role, with compensation often higher in areas with a higher cost of living or increased demand for surrogates. For example, surrogates in states like California may receive more due to these factors.
A surrogate’s experience level also impacts her compensation. Surrogates who have successfully completed prior journeys often command higher fees because of their familiarity with the process and demonstrated reliability. This prior experience provides confidence to intended parents, leading to increased compensation.
The type of surrogacy is another influencing factor. Gestational surrogacy is the prevalent model where the surrogate is not genetically related to the child, and compensation models primarily apply to this arrangement. Carrying multiples, such as twins or triplets, typically results in an additional fee due to the increased physical strain and medical risks involved. Compensation may also be provided for specific invasive medical procedures, such as a cerclage or a C-section, recognizing the added discomfort and recovery time.
Additional Payments and Reimbursements
Beyond base compensation, surrogates typically receive various additional payments and reimbursements covering specific expenses throughout the journey. Medical expenses are comprehensively covered, including co-pays, deductibles, and procedures not covered by the surrogate’s primary insurance. Intended parents are generally responsible for these costs, ensuring the surrogate incurs no out-of-pocket medical expenses related to the pregnancy.
Lost wages are commonly reimbursed for income missed due to medical appointments, physician-ordered bed rest, or recovery from delivery. This reimbursement may also extend to a surrogate’s partner for time taken off work. Documentation, such as pay stubs and doctor’s notes, is typically required.
Surrogates receive an allowance for maternity clothing, usually a stipend provided after the first trimester. Travel expenses for medical appointments, legal meetings, or other surrogacy-related necessities are also covered, including mileage reimbursement or direct arrangements for air travel. Compensation for childcare during appointments ensures that the surrogate’s family responsibilities are not a barrier to her participation.
A life insurance policy is routinely purchased for the surrogate by the intended parents, offering financial protection for her family. Coverage amounts typically range from $250,000 to $500,000. Reimbursement for counseling or psychological support is often provided, acknowledging the emotional aspects of the surrogacy process. Legal fees for the surrogate’s independent review of the surrogacy contract are also covered by the intended parents. Specific fees for procedures like the embryo transfer are common.
Compensation Payment Structure
The payment of surrogate compensation is structured to provide financial stability and transparency throughout the journey, often managed by an independent third party. An escrow account, held by a neutral financial service, plays a central role in managing and disbursing funds. Intended parents deposit the agreed-upon funds into this account, and the escrow agent releases payments according to the terms of the surrogacy contract.
Base compensation is typically paid in monthly installments once a confirmed pregnancy heartbeat is established. These regular payments provide consistent financial support to the surrogate throughout the majority of her pregnancy. Prior to pregnancy confirmation, initial payments may be disbursed for milestones such as signing the contract, completing medical screenings, or the embryo transfer procedure. Some contracts may also include a one-time bonus upon contract signing.
Allowances for expenses like maternity clothing or travel are often disbursed at specific points in the journey, such as after the first trimester. Other expenses, including medical co-pays or lost wages, are typically reimbursed upon submission of appropriate documentation. The final portion of the base compensation is generally paid after the delivery of the baby, often within a few weeks postpartum. This structured payment schedule ensures that the surrogate is compensated for her dedication and efforts.