Traditional Vs. Gestational Surrogacy: Costs And Legalities
While both traditional and gestational surrogacy offers hope to potential parents, there are significant differences in costs and legalities.
Traditional Vs. Gestational Surrogacy: Costs And Legalities
Few people wanting to start a family are ready for the sad news that they cannot bear children. Yet, it's a situation that many face.
When considering options for having a child, surrogacy is often the only alternative, and it's a costly and complicated journey.
But for those desperate for a child, it's worth every cent and bump in the road.
Understanding The Two Types Of Surrogacy
While both traditional and gestational surrogacy offers hope to potential parents, there are significant differences in costs and legalities.
Traditional surrogacy is a process where the surrogate's own egg is fertilized with the father's or donor's sperm via artificial insemination. As a result, the surrogate mother is biologically related to the child she carries.
Gestational surrogacy involves using in vitro fertilization (IVF) to create embryos using the intended parents' or donors' gametes. The medical team then implants the embryos into the surrogate's womb. The surrogate has no genetic link to the infant she brings into the world.
The Costs Of Surrogacy
The costs associated with surrogacy can be substantial and depend on various factors, including the country, medical procedures, legal fees, and the individual circumstances of the intended parents and the surrogate.
Gestational surrogacy is typically more expensive than traditional surrogacy due to the additional medical procedures involved.
Traditional Surrogacy Costs
Traditional surrogacy may be less expensive due to the absence of costly IVF procedures, but it comes with its own challenges and considerations. Traditional surrogacy is also less common than gestational surrogacy. Costs can range from $60 000 - $100 000 or more, including:
Medical evaluation: $0 - $1000
Insemination method – costs vary depending on whether the intrauterine insemination cycle, home insemination, or IVF cycle applies. Can reach $20 000+.
Psychological evaluation of the surrogate and counseling for the intended parents: Estimated $1000.
Pre-pregnancy costs of $1500 - $3000 could apply to the surrogate's expenses for commuting to consultations, loss of wages, childcare, accommodation, airfare, etc.
Pregnancy and postpartum costs typically run between $18 000 - $25000, which may include food, clothing, transport costs, childcare, income loss, and medications.
Additional costs in the event of C-section births, multiple births, and compulsory bed rest can go up to $16 000.
Typical legal fees: $5000 to $8000.
A year-long life insurance policy for the surrogate for the protection of her family of $300 - $500
Optional DNA tests: up to $500.
Agency or consultancy fees can reach $20 000.
While commercial surrogacy is illegal in Canada, surrogates in the USA may charge fees ranging between $30 000 - $60 000.
Expected Gestational Surrogacy Costs
In addition to the expenses related to using traditional surrogates, gestational surrogacy costs can increase by approximately $10 000 - $20 000 per IVF or frozen transfer cycle.
Additional Costs Of Surrogacy
It's impossible to put a final price tag on surrogacy because each case is unique. Extra costs may include sperm/egg donations, criminal checks, and medical insurance for newborns whose intended parents are foreigners.
The Legalities Of Surrogacy
Surrogacy can be a beautiful act of kindness that brings a childless couple the greatest gift imaginable. Still, there are potential legal issues due to the complicated parentage of the baby and the emotional attachments of all involved.
Surrogacy In Canada
The Assisted Human Reproduction Act (AHRA) governs all surrogate arrangements in Canada, whether traditional or gestational. Furthermore, all arrangements must respect all applicable territorial and provincial laws. Traditional surrogacy accounts for less than 2% of surrogate births in the country. The AHRA places strict limits on surrogacy:
The law only allows altruistic surrogacy. Intended parents may not pay, offer to pay, or advertise payment for a surrogate. Canadian surrogates may only receive reimbursements for out-of-pocket expenses related to the pregnancy and must provide receipts for these as far as possible.
Agencies or individuals may not receive payment for arranging a surrogate for the intended parents or offer to do so. They may also not advertise this service.
Nobody may pay or offer to pay for the services of arranging a surrogate to carry their child.
The minimum age for acting as a surrogate mother is 21.
A legal contract between the prospective parents and the surrogate must be in place before initiating the pregnancy, with each party having independent lawyers.
In Canada, certain costs for the surrogate mother or donor are also tax deductible. When filing taxes, these costs are included if they’re medical expenses that the individual would otherwise be allowed to claim for themselves.
One of the crucial elements of surrogacy is recognizing the legal parents after the child's birth. This depends on the province where the baby is born, whether the intended parents are genetically related to the child, and if the surrogate has genetic links to the baby.
The legal process for surrogacy in Canada involves drafting a detailed agreement outlining all parties' roles, responsibilities, and expectations. After the birth, one or both of the intended parents may have to adopt the child to establish their parental rights.
The Legalities Of Surrogacy In the USA
No federal laws govern surrogacy in the USA, whether traditional or gestational. Surrogacy laws vary from state to state, with some states being more surrogacy-friendly than others. Several states, such as California, Illinois, and Massachusetts, have well-established legal frameworks supporting gestational and traditional surrogacy. However, traditional surrogacy is illegal in many states.
Some states don’t permit compensation to the surrogate mother at all, while others restrict the amount prospective parents can reimburse a surrogate for expenses related to her pregnancy.
Some American states don't enforce surrogacy contracts, making it risky for both parties to engage in the process. Without enforceability, surrogates may not receive benefits and agreed-upon compensation. Intended parents may also struggle to establish their legal rights to the infant.
Another legal element that varies from state to state is the establishment of parentage. Certain states consider the birth mother the legal parent, and the intended parents may have to take further steps to establish their legal rights to a baby born via a surrogate.
Sometimes parentage orders are available before the birth, others only after the child is born, and in some instances, the intended parents must adopt the child.
Surrogacy-friendly states also permit agency fees to match potential surrogates and intended parents and to provide services relating to the process.
Final Thoughts
Traditional and gestational surrogacy can make intended parents' dreams come true, but the legalities and associated costs require careful consideration.
Despite the lesser costs, traditional surrogacy is less popular than gestational surrogacy, which involves less risk of legal complications. That said, both types of surrogacy are nearly always happy events for parents and surrogates.
Tracy Renning is a content champion for various online publications, often covering a range of business and lifestyle topics from finance for startups to small businesses and even to personal finance.
Medical Disclaimer:
The information provided in this blog is intended for general informational purposes only and should not be considered as a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your healthcare provider or qualified medical professional with any questions you may have regarding a medical condition. Never disregard professional medical advice or delay in seeking it because of something you have read in this blog.