Policies for intended parents, surrogates and egg donors

Be Educated and Informed...

Surrogate, Intended Parents, Surrogate Agencies, Surrogate Attorneys
About... major medical insurance.

FACTS

Surrogates are still applying for major medical coverage, FULL Knowing they are going to be a surrogate.
California law is clear that canceling an insurance policy generally does not require a showing of intent to deceive or willful misrepresentation.
If you do not disclose to the insurance company you are going to be a surrogate, you are misrepresenting critical information the insurance company must have to approve or deny your application.
Even if you have Group medical insurance you must advise first your insurer.
Surrogates and Intended Parents alike are being harmed financially with cancellations, rescissions or denial of claims in the courts.

New Life Agency wants you to make an informed choice if you risk insuring your surrogate through a major medical plan.

NEW LIFE NEWS ARTICLES:

DoD: Drop surrogate pregnancies from Tricare

By Rick Maze - Staff writer
Posted : Wednesday Apr 11, 2007 15:05:16 EDT

The Defense Department is moving to make women in the military community less attractive candidates to be surrogate parents by cutting off coverage for any medical procedures related to surrogate pregnancy.

It would take an act of Congress to change current coverage. Defense officials have asked for the prohibition to be included in the 2008 defense authorization bill that is expected to be passed by Congress later this year.

"Under current law, maternity benefits are available to female health care beneficiaries, including active-duty members and wives of male current or former members, without distinction between pregnancies for the benefit of the military family and surrogate pregnancies, usually for a fee, for the benefit of others," defense officials said in a statement sent to Congress.

"The military health care benefit is designed to be an important part of the commitment of the Armed Forces to members and their families. It is not, however, intended to support surrogate pregnancies, typically an income-producing enterprise," the statement says.

The change would prohibit both direct care and care under the military's Tricare health insurance program for surrogate-related health expenses.

Under current procedures, a surrogate mother covered by military health care could be expected to pay part of her medical costs if her contractual arrangement is known. Tricare is supposed to cover only the remaining balance of costs not covered by the surrogacy contract, and the military's interpretation assumes that any payments - not just a payment specifically to reimburse medical care - could be first used to pay for medical treatment, according to the Tricare operations manual.

Defense officials said they do not have any data that tell them how many surrogate pregnancies have been paid for by Tricare, but officials were "aware of a number of such cases."

Navy Capt. Patricia Buss, Tricare's deputy chief medical officer, said she was not aware of any specific incident that led the Defense Department to seek a change in coverage. "However, anecdotal discussions with providers and other staff at military treatment facilities, and from various Web sites where gestational surrogates post their stories, indicate that there may be many," she said.

One company, Surrogate Alternatives Inc., of Chula Vista, Calif., mentions Tricare in its fee schedule and actually pays surrogates $5,000 more if the surrogate has military health coverage. The company's fee for first-time surrogates is $20,000 if they don't have Tricare coverage, and $25,000 if they do. The money is paid in monthly installments throughout the pregnancy, with the balance paid when the baby is delivered and leaves the hospital.

"A surrogate who already carries health insurance that does not exclude surrogacy is ideal. However, most insurance companies will not cover a surrogate pregnancy," says a statement on the Internet by Dawn Hunt, owner of Fertility Alternatives Inc. in Murrietta, Calif. Hunt describes herself as a two-time surrogate and six-time egg donor. Hunt said the ideal surrogate mother is married, has a child or children, and is 21 to 37 years old. A surrogate cannot smoke or use illegal drugs, should not be in the middle of a divorce or have financial problems, and both the prospective surrogate and her spouse must pass a criminal background check.

For carrying a child, a surrogate can expect to be paid $20,000 or more, in addition to receiving a fee for every invasive medical procedure and a small monthly expense account. The $20,000 fee is just the starting point, with more money generally paid to someone who has been a surrogate before, which is why defense officials view this as a profit-making enterprise.

Blue Cross cancellations called illegal

The health insurer 'routinely' dropped the policies of pregnant or ill clients, an agency finds. The company disputes the charge.
[HOME EDITION]
Los Angeles Times - Los Angeles, Calif.
Author: Lisa Girion
Date: Mar 23, 2007
Start Page: A.1
Section: Main News; Part A; Business Desk
Document Types: News
Text Word Count: 1180

Abstract (Document Summary)

At issue are individual policies, the type needed by consumers who cannot get group coverage from employers or others. Although insurers cannot deny coverage to members of group plans, state law allows insurers to deny granting individual policies to applicants with preexisting medical conditions.

The department's report noted that the company had taken steps to improve its process for reviewing applications for individual policies, to determine whether applicants are truthful about their medical conditions. But it concluded that the company had not yet adequately addressed its failure to show willful misrepresentation on the part of the policyholders targeted for rescission.

"California law is clear that rescission generally does not require a showing of intent to deceive or willful misrepresentation," WellPoint spokeswoman Shannon Troughton said. "All that is required for misrepresentation to be 'intentional' is that the true facts be known to the applicant. If the applicant had no present knowledge of the facts sought or failed to appreciate the significance of information, an incorrect or incomplete response would not constitute grounds for rescission."