Which programs count as government assistance?
Private Label Surrogacy does not accept surrogates who currently receive means-tested government assistance. Means-tested means you qualify because your household income or assets are below a limit. Medicaid, SNAP, WIC, TANF and Section 8 housing are all means-tested.
Benefits you earned through work or service are different. Unemployment insurance and VA disability are earned benefits, not means-tested assistance, and they do not disqualify you.
| Program | PLS status | Reason |
|---|---|---|
| Medicaid | Not accepted while enrolled | Will not pay for a surrogate pregnancy; means-tested |
| SNAP (food stamps) | Not accepted while enrolled | Means-tested; compensation would count against eligibility |
| WIC | Not accepted while enrolled | Means-tested; compensation would count against eligibility |
| TANF (cash assistance) | Not accepted while enrolled | Means-tested; compensation would count against eligibility |
| Section 8 housing | Not accepted while enrolled | Means-tested; compensation would count against eligibility |
| SSDI | Reviewed case by case; the disability itself is reviewed medically | Earned through work credits, not means-tested |
| Unemployment insurance | Does not disqualify | Earned benefit, not means-tested |
| VA disability | Does not disqualify | Earned benefit, not means-tested |
Statements on this page about how compensation affects benefit eligibility are pending review by counsel.
Why Medicaid cannot cover a surrogate pregnancy
Medicaid will not pay for a surrogate pregnancy. The program covers your own medical care, and a pregnancy you carry for intended parents under a contract is not treated as your own.
That matters because the intended parents are responsible for the medical costs of the pregnancy, and they cannot rely on a public program to cover prenatal care and delivery. They need a private health plan or a surrogacy-specific policy. PLS reviews your health insurance at screening. If your plan excludes surrogacy, the intended parents fund a surrogacy-friendly policy, which typically costs them $5,000 to $40,000. See surrogate health insurance.
If Medicaid is your only coverage, there is no plan to review and no policy for the parents to build on. That is one reason the rule exists.
Why compensation would end your benefits
Surrogate compensation is substantial. First-time base compensation at PLS is $60,000, and experienced surrogates receive $65,000 to $70,000. On top of the base come allowances and reimbursements for things like maternity clothing, lost wages and housekeeping late in pregnancy.
Under most means-tested programs, compensation of this size counts as income or as assets, and it would end your eligibility partway through the journey. Losing food, housing or cash support in the middle of a pregnancy would put real pressure on your household, at exactly the time you need stability most.
Compensation is paid through an independent licensed escrow agent with tax reporting, so it is on the record. Talk with a tax professional about how it affects your own situation. See surrogate compensation and taxes.
What the ASRM and SEEDS ethics standards say about financial need
ASRM, the American Society for Reproductive Medicine, publishes guidance for clinics that work with gestational carriers. SEEDS, the Society for Ethics in Egg Donation and Surrogacy, sets ethics standards for agencies. Nancy Block, RN, who founded PLS, is a former President of SEEDS and received its Shining Star Award in 2018.
Both bodies hold that a woman should choose surrogacy from a position of financial stability, and that compensation should not be what holds a household together.
PLS applies that principle directly. Your household should be financially stable without the compensation. Surrogacy should be a choice you make from a secure place, with time to think and the freedom to say no. A family that depends on the next payment does not have that freedom in the same way.
Does the rule apply to your partner or children?
The rule is about you, the surrogate, and your own enrollment. It does not apply to other members of your household in the same way.
If your children are enrolled in Medicaid or CHIP while you are not, PLS reviews your situation case by case. Tell the prescreen exactly who in your household receives which benefit. Your case manager can then tell you where you stand before you go further.
PLS also looks at the household as a whole. Every adult in your home goes through a background check, and the independent psychological evaluation looks at your support system and your stability. The aim is the same as the assistance rule: a home that can absorb a pregnancy without strain.
What if you were on assistance in the past?
Past assistance does not disqualify you. The rule is temporary. If you leave assistance, you can apply.
Many families use these programs during a hard stretch and then move on. What PLS asks is that you are not enrolled now, and that your household is stable without support. If you are about to leave a program, wait until you have, then start the prescreen.
Government assistance is one of several temporary disqualifiers. BMI, breastfeeding, a recent birth and a current medication can all change with time. See what disqualifies a surrogate for the full list, and the surrogate requirements for everything else you need. If you are off assistance and meet the other requirements, start at See if I qualify.
Sources
- ASRM (American Society for Reproductive Medicine), recommendations for practices using gestational carriers and ethics guidance on compensation. asrm.org
- SEEDS (Society for Ethics in Egg Donation and Surrogacy), of which Nancy Block, RN, is a former President.