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Tough Economy Tightens Surrogacy Market
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(WOMENSENEWS) -- In Orange County, Calif., Amy Kaplan of West Coast Surrogacy has seen intended parents -- those wishing to treat their infertility problem by having another woman carry a fertilized egg for them -- save money in various ways.
Some have relatives serve as volunteer carriers. Others donate their extra eggs to fertility clinics, which can sometimes lower their costs for having the eggs harvested for in vitro fertilization.
"I've seen intended parents consider hiring less-expensive carriers overseas," says Kaplan. "Recently, I've even seen them liquidating their 401(k)s in the hope of having a child."
Unlike procedures for treating breast cancer, heart disease or other major health conditions, surrogacy to treat infertility is relatively new, small scale and unregulated.
For these reasons statistics about the industry -- including the income of its clients -- are unavailable. However, extensive interviews with industry insiders challenge the stereotype -- fueled by Tina Fey's recent Baby Mama film -- that surrogacy is only for the affluent.
But in the future, economic hardship may make that more true, says Kaplan.
"In the past, people would refinance their homes to get an extra line of credit," she says. "But since the subprime mortgage crisis struck last fall, that's now impossible for many people."
Surrogate Births Rise
Surrogate births in 2007 rose to 1,000, up sharply from 260 in 2006, according to the Society for Assisted Reproductive Technology in Birmingham, Ala.
Health advocates cite several reasons for this rise. Surrogacy is becoming more effective, with a 70 to 90 percent success rate compared to 40 percent a decade ago. It's more acceptable thanks to media exposure like Baby Mama, in which a marketing maven who's told her uterus is misshapen hires another woman to bear her child.
And it's in greater demand due to rising infertility, which has increased twelvefold since the 1930s.
At the same time, the costs of surrogacy have also risen, up by about 20 percent since 2004, well ahead of the pace of inflation.
Unable to pay for surrogacy procedures, which are not covered by health insurance, many intended parents are giving up sooner, after one or two failed attempts at fertility treatments.
Others are trying to save money by taking risky measures such as finding carriers without the help of an agency that can screen them, forgoing all but the essential legal paperwork, and working with doctors and carriers in developing countries for a savings of up to $50,000.
A Life Line
At a time when many Americans are struggling with job losses and high mortgage payments, surrogacy may seem like a luxury. But for women who feel a pressing need to bring new life into the world surrogacy can seem like a literal life line.
"Infertile people don't want to give up on their dreams, but the high price of surrogacy isn't changing to accommodate them if they've been laid off or lost homes in the mortgage crisis," says Anne Adams, a spokesperson for the New York-based American Fertility Association. "As the economy worsens, this only grows harder for them."
To avoid custody complications associated with artificial insemination -- which costs $500 to $1,000 and can rely on the eggs of the gestational carrier -- most intended parents opt for the more expensive in vitro fertilization (IVF, which costs $18,000 to $20,000 and uses the eggs of a non-carrier, usually an intended parent).
After fertility treatment, the expenses of surrogacy break into about four categories. Legal expenses range from $5,000 to $6,000. The carrier's health insurance ranges from $26,000 to $30,000. The carrier's fee -- for services and living expenses -- ranges from $20,000 to $45,000. The fee for the agency (which includes a legally-mandated $1,500 screening fee to check the carrier's background) -- ranges from $3,000 to $25,000.
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