Cord Blood Storage: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Spending Account (FSA)
Cord blood storage is sometimes eligible with a Letter of Medical Necessity (LMN) from a physician if it is to treat an existing or imminently probable disease with a flexible spending account (FSA), health savings account (HSA) or a health reimbursem*nt arrangement (HRA). Cord blood storage reimbursem*nt is not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).
Cord blood storage as a precautionary measure to treat a disease that may or may not develop in the future is not eligible.
What is cord blood storage?
While the vast majority of blood storage is conducted for public use, individuals can pay for the services of a cord blood bank in anticipation of treating an existing or imminently probable disease that may develop over the course of their child's life. When a baby is born, parents will have the option to store the blood found inside the umbilical cord of a newborn baby, which is rich in blood stem cells, which have the ability to reproduce themselves into other types of cells. These cells can play a vital role in treating medical conditions like leukemia, sickle cell anemia or lymphoma, as injecting these cells can replenish a patient's blood supply with new, healthy cells. Cord blood cells can also be used to help the body recover from intensive cancer treatments like chemotherapy or radiation (ViaCord).
When a child is born, parents will have the option of paying to preserve this cord blood for their family member's future use by paying to store it in a private cord blood bank, having it disposed of or donating it to a public bank so it can be freely used by medical professionals to treat a wide range of potential medical conditions (American Pregnancy Association). While benefits administrators can vary in their rulings of whether blood storage is an eligible medical expense, a Letter of Medical Necessity (LMN) from a physician is recommended for reimbursem*nt. This will outline how blood storage will be used to treat an existing medical condition, or if a child has shown a predisposition for a certain illness that is imminently probable, it will most likely be eligible for reimbursem*nt through a consumer-directed healthcare plan.
