Surrogacy Compensation – The Top 5 Things You Need to Know
All gestational surrogacy compensation packages ARE NOT created equal. Without regulations on how compensation is presented to potential surrogates, agencies can/will oftentimes boast unrealistic numbers to get you in the door, leaving your true compensation short of expectations and possibly tainting what should otherwise be an amazing journey.
We know that compensation is not the number one driver of your decision to become a surrogate, but that doesn’t mean you should be left in the dark as to how compensation works. The heroic physical and mental journey that a surrogate will experience is something that deserves to be rewarded and celebrated, and part of that celebration is monetary compensation. To help you learn more about how compensation is presented to potential surrogates, we have identified five key points to keep your eye on when you are doing your research.
1. 'Base Compensation’ - What does it mean, what is included, and why do different agencies quote different base numbers?
Let’s start by discussing the 2 common compensation philosophies: Flat Rate Pay vs Line item.
‘Flat rate pay’ is an all-inclusive model that can be very misleading as it often includes variables that will not apply to all surrogates, leading to an actual base that is much lower than the ‘if every payable scenario happens’ scenario being factored into the base. Items typically quoted in this model can include variables such as monthly expense allowance, maternity clothes allowance, mock or dropped cycle fee, housekeeping, childcare, invasive procedures, and the first $10,000 of lost wages. Making sure you understand what is and isn’t included in your specific situation is important.
‘Line item’ compensation offers the mos transparent representation of your potential compensation and reimbursements as a surrogate. This approach breaks down each fee/allowance/compensation piece during the surrogacy process, including a true ‘base compensation’ figure that is not impacted by the variables you see in a ‘flat rate’ structure.
For instance, in the Bright Future Families ‘line item’ approach, your base pay of $50,000 is paid to you over 8 monthly installments during the pregnancy. This base pay excludes the variables mentioned in ‘flat rate’ pay, which with other agencies could (and often does) lower the actual amount you are getting paid.
On top of the base pay, you then ADD each of the following items: Monthly expense allowance $250/month (avg. $3,500) is automatically paid while under contract; maternity clothes allowance (avg. $750), dropped or mock cycle fee ($500) paid each time one of these happens during your process or a milestone is met; housekeeping $200/month (avg. $2,400); additional procedures (up to $7,000) dependent on procedure and if anesthesia is needed, actual lost wages for surrogate and partner/companion lost wages (avg. of 7 days/$3,000).
Bright Futures Families uses the ‘line item’ compensation model.
Some agencies deduct other allowances or reimbursements from the base compensation number. Instead, we ADD those extra perks on top as real dollars into your pocket (or reimbursed back to you!) throughout your surrogacy journey.
Check out our surrogacy compensation comparison sheet. You can use this sheet to compare BFF with other agencies.
2. Are there any caps on the actual cost reimbursements? What are those caps?
Yes, there are potential caps to some of these reimbursements. We will discuss the parameters of those caps with you early in your surrogacy process so you have full clarity on what they are and how to best navigate them to make sure you are getting the most out of your journey.
Reimbursement items that can have a cap are the following:
- Companion lost wages
- Child care
- Preferred items such as massage, chiropractic, doula, acupuncture, etc..
The cap can consist of how many days/visits are allowed or it could be a set dollar amount. You may need a doctor’s note in order to use a specific item or you may need to provide receipts for the reimbursements. Our case managers will work with you to make sure you understand every resource you can take advantage of and how it works.
The gestational carrier lost wages are not capped nor part of the base compensation with Bright Futures Families. This is something you want to verify with other agencies, as that is not always the case. Is there a dollar amount cap or a number of days cap? Are part or all of the lost wages included in the base compensation? It is important to know the pieces of the compensation puzzle and how they fit together.
3. How do I get paid and reimbursed?
The decision to become a gestational surrogate, and the subsequent journey, is a beautiful gift you are giving to the world. We want you to be able to focus on that journey, so we make the process of payment and reimbursement as transparent and simple as possible. How does that happen?
Using a third-party escrow account is an important part of keeping an organized and less contentious journey. Escrow is designed to follow your contract and make sure payments are disbursed in a timely manner. Agencies will typically go one of three routes: holding their own escrow in-house, working with an attorney to hold escrow, or utilizing a 3rd party escrow company. Payments are made according to your contract or could depend on the escrow company used; typically you would be reimbursed within 30 days. Bright Futures Families follows best practices and uses a third-party escrow company.
If there are any payments or reimbursements before contracts are completed, a good agency will transparently help you work through those items and how they are paid. This could be for prescriptions, travel, or other costs.
4. How do I know I’ll get paid what I was told?
When it comes to the topic of surrogacy compensation, agencies can present their numbers in a variety of ways. So, how do you know what your actual earning potential will be?
Simply put, nothing is locked in until you discuss it with your attorney and it is solidified into your gestational carrier agreement. However, BFF works hard to be transparent and to provide you with the detailed information you need to make sure the compensation we initially discussed with you is accurate and transferred into your agreement.
So why would agencies present the compensation package before the contract then?
It is important to have a general understanding of surrogacy compensation prior to the matching process, as it helps agencies to match gestational surrogates with intended parents better and makes the entire process proceed smoothly. More specifically, the benefits package is often used as a criterion for matching since it is an important piece for all parties to agree on.
When the time for solidifying contracts arrives, your state may require specific compensation language or limit particular items, so understanding compensation early in the process can lead to a much more enjoyable journey.
5. Compensation is just one part of the equation.
Compensation can be just a number. Yes, it is essential to be supported financially, but we know there is much more to your journey than money. Physical, emotional, and mental support is critical to a great gestational surrogacy journey. Bright Futures Families, and our 6 local branches throughout the country, work tirelessly to provide you with support and value during and after your surrogacy journey.
● A local point of contact or at least one (or two!) people at the agency that you can reach out to and communicate with throughout the journey. NO CALL CENTERS HERE. You will speak with the same team members throughout your match.
● Meetups or events that help you have access and time with staff and other gestational carriers. This is a special journey and not everyone will understand the difficulties that come with it. Our staff is full of former gestational carriers, and we work hard to create a community to which you can belong. We know what you are going through and want to help make your journey easier, however possible.
● Support from start to finish! We provide support from the time you apply until six months after the birth (and beyond). Once you are part of our BFF family, you are part of our family for life!