Clarifying the limitations of HSAs and HRAs

1. Health Savings Account (HSA): Generally, HSAs can only be used for expenses that are considered "qualified medical expenses" by the IRS for the account holder, their spouse, and dependents. Surrogacy expenses (for example, medical costs related to the surrogate's care) are usually not eligible, as the surrogate isn't considered a dependent. However, some expenses directly related to the account holder's own health and well-being (such as fertility treatments for the intended parents) may be eligible.

2. Health Reimbursement Arrangement (HRA): HRAs are more flexible, but their coverage is determined by the employer’s plan specifics. Most HRAs won't cover expenses related to a surrogate, but like with HSAs, they might cover fertility-related expenses for the intended parent if the plan includes that.

Take the time to review the plan documents of your specific HSA or HRA and consult with the plan administrator or a tax advisor, as some plans may offer unique exceptions.

Employer benefits that can help with surrogacy

Some employer benefits include help with surrogacy-related costs, though this support varies widely depending on the employer. Specific benefits worth investigating include:

1. Fertility Benefits:

• Some employers offer fertility benefits that can extend to cover certain aspects of surrogacy, like IVF treatments, embryo transfers, and fertility medications for intended parents. However, these benefits are unlikely to cover the surrogate’s medical expenses or agency fees for the journey.

2. Surrogacy Reimbursement:

• A small number of employers offer surrogacy reimbursement programs, providing a set amount (often between $10,000 and $25,000) to help with surrogacy-related expenses. These programs, if your employer offers them, can offset legal fees, agency fees, or certain medical costs.

3. Parental Leave:

• Many employers that provide parental leave to employees becoming parents do not exclude surrogacy, treating them similarly to other new parents. This leave allows time to bond with the child and adjust after the baby is born.

4. Counseling and Emotional Support:

• Some companies offer access to Employee Assistance Programs (EAPs) or family-building programs that include counseling and support services for employees going through surrogacy, which can help manage the emotional and logistical challenges of the process.

It is worth reviewing your employer's benefits package or speaking directly with the benefits department to see what your employer offers, as surrogacy benefits are still emerging and vary by company.

Alternative surrogacy funding sources

• Crowdfunding has become an increasingly popular way for families to raise funds for surrogacy and adoption. Platforms like GoFundMe allow friends, family, and community members to contribute financially. While it likely would not cover all expenses, it can make a meaningful difference.

• Several organizations offer grants to assist intended parents with family-building expenses, including surrogacy. Examples include the Tinina Q. Cade Foundation Family Building Grant, Baby Quest Foundation, and Men Having Babies’ Gay Parenting Assistance Program (GPAP). These grants typically require an application and may cover part of the overall cost.

• There are financing options specifically targeted toward fertility and surrogacy-related costs that may offer more favorable terms than traditional loans.

• Companies like CapexMD, Sunfish, Prosper Healthcare Lending, and Future Family specialize in fertility loans and offer financing for surrogacy, IVF, and other fertility treatments. These providers often have partnerships with clinics, which can sometimes result in lower interest rates and more flexible terms.

• Many of these loans come with repayment terms of 2-7 years, and interest rates may vary depending on creditworthiness, loan amount, and term length. Fertility-specific lenders tend to have a streamlined application process tailored to medical procedures, which can make the experience smoother.

If you have additional questions, or want to discuss what your journey could look like, please reach out!