Are Agencies Exposing Their Surrogates & Intended Parents To Potential Insurance Fraud Allegations?

I would have thought the revelations regarding the SurroGenesis insurance scam would have served as a clarion call to this industry to clean up its act. Of course, that was too optimistic a thought in an industry that continues to demonstrate a mind-numbing ability to ignore the most obvious warning signals. So while news of the unethical practices of SurroGenesis were met with pubic displays of indignation and condemnation, many have continued to engage in similarly questionable practices that, undoubtedly, will cause an entire new wave of scandals.

As many in this industry already know, the inability to secure medical coverage for surrogates reached almost crisis proportions a few years ago as health insurers chose to exclude maternity benefits for women serving as surrogates. This crisis largely subsided with the introduction of Surrogate Maternity Coverage Plans underwritten by Lloyds of London. As a result of the Lloyds plans, coverage became available for all surrogates, though at a major cost. Between deductibles and premiums, these plans could exceed $25,000.00, easily putting the cost to the Intended Parents pursuing a gestational carrier arrangement at $100,000.00 or more.

So what have some agencies done to gain a competitive advantage? They have begun placing…