For many families, surrogacy provides a path to parenthood that might otherwise be out of reach. Whether due to medical complications, infertility, or other circumstances, individuals and couples often turn to surrogacy as a way to grow their families. A common question about surrogacy in New York is whether surrogates can receive financial compensation for their role. The answer is yes, with clear rules and protections in place.
The Legalization of Compensated Surrogacy in New York
In February 2021, New York legalized compensated gestational surrogacy arrangements under the Child Parent Security Act (CPSA), making it possible for intended parents and surrogates to enter into enforceable surrogacy contracts that include financial payment.
However, traditional surrogacy, where the surrogate uses her own egg, is not legal, and financial compensation for traditional surrogacy in New York State could result in criminal penalties.
Base Compensation
Compensation for gestational surrogacy includes a base pay, which is negotiated between the surrogate and intended parents. The base pay is paid directly to the surrogate and reflects the surrogate’s time, effort, and commitment throughout the pregnancy. While there is no set figure for base pay, payments are usually made in scheduled installments throughout the pregnancy, with details clearly outlined in the contract between the surrogate and the intended parents.
Reimbursement
In addition to base pay, surrogates are compensated through reimbursements for a variety of expenses incurred throughout the course of the surrogacy arrangement. These may include medical costs, legal fees, health insurance coverage, and lost wages if the surrogate needs to take time off work for appointments or recovery. Reimbursements can also cover maternity clothes, travel related to doctor visits or fertility procedures, and childcare expenses if needed. Other reasonable costs directly tied to the surrogacy may also be included.
Escrow Accounts
Under the CPSA, all funds for a surrogacy arrangement must be held and managed by an escrow agent. The law also requires that funds be placed in the escrow account before most medical procedures begin, and the escrow agent must be independent to avoid any conflicts of interest. The intended parents deposit the required funds into an escrow account, and the agent is responsible for distributing payments to the surrogate. These payments cover both compensation and reimbursements.
This system ensures that payments are made fairly and on time. It also provides transparency and security for both sides, since the escrow agent acts as a neutral third party in the process.
Legal Guidance for Surrogacy
For families considering surrogacy, legal guidance is essential. Every arrangement is unique, and an experienced attorney can help ensure agreements meet the requirements of New York law while protecting the interests of everyone involved. At Rupp Pfalzgraf, our family law attorneys are experienced in New York State surrogacy law and are prepared to assist with every stage of the process.