During its research, Newsweek found these women are military wives who have taken on surrogacy to supplement family while their husbands are serving overseas.
Military wives are largely young stay-at-home moms who've completed their own families before they hit 28, IVF clinics and surrogate agencies in Texas and California were quoted as saying by the magazine.
In the military, we have that mentality of going to extremes, fighting for your country, risking your life, the report says.
Several agencies reported a significant increase in the number of wives of soldiers and naval personnel applying to be surrogates since the invasion of Iraq in 2003, it says.
Military wives, says the report, are attractive candidates because of their health insurance, Tricare, which is provided by three different companies Humana, TriWest and Health Net Federal Services and has some of the most comprehensive coverage for surrogates in the industry.
Fertility agencies, the report says, know this, and may offer a potential surrogate with this health plan an extra USD 5,000.
Last year, military officials asked for a provision in the 2008 defence authorisation bill to cut off coverage for any medical procedures related to surrogate pregnancy.
Tricare, it says, suggests that surrogate mothers who receive payment for their pregnancy should declare the amount they're receiving, which can then be deducted from their coverage.