I have blogged previously regarding my concerns about the insurance scam perpetrated by SurroGenesis. Since that time I have obtained additional information provided by former employees of SurroGenesis USA.
From what I have been told, SurroGenesis would add Surrogates who lacked adequate medical coverage to the company’s group health plan. This group plan, through Blue Cross/Blue Shield of California, did not contain an exclusion for maternity benefits for insureds serving as surrogates. According to the former employees, SurroGenesis would classify these surrogates as employees, even though most never performed any work related function. Once matched with a couple, most of the surrogates were terminated from their pseudo-employment and instructed to maintain their policy of insurance by electing COBRA. The cost of the COBRA was in turn passed along to the Intended Parents. Interestingly, the Michael Charles Company was paying the COBRA premiums using blank money orders instead of their normal “trust” checks to avoid raising any suspicion with Blue Cross/Blue Shield. Other surrogates were not terminated and left on the group plan with their Intended Parents being billed for the premiums.
My fear is that once Blue Cross/Blue Shield learns of the SurroGenesis’ contrivance to obtain coverage, they will rescind the policy based upon a fraudulent misrepresentation and likely refer this matter to law enforcement. This is assuming the policy is not canceled for non-payment of premiums first. Regardless of how the policy is terminated however, I again reiterate my earlier recommendation that if you were working with SurroGenesis and your Surrogate was insured through the SurroGenesis group plan, that you immediately speak to your attorney. While the Intended Parents and Surrogates had no reason to suspect that the insurance may have been procured improperly, there may very well be a duty imposed upon you (and/or your Surrogate) now to notify the insurer of what transpired. Moreover, it will likely be in your best interests to address this issue proactively by disclosing the circumstances of the policy issuance and attempting to negotiate an arrangement with the insurance company to maintain the coverage if possible.