How Much Does Cord Blood Banking Cost? (2024)

If you're having a baby, you might have heard about cord blood banking. Given the potential life-saving abilities of cord blood, it's no wonder many parents consider banking it.

But how much does cord blood banking cost? It depends on what type of banking you choose. While public cord blood banking is free, private cord blood banking can cost between $1,350 and $2,350, depending on several factors, such as collection, testing, and registration fees.

Keep reading to learn about cord blood banking, including what it is, what type they should use (public or private), and cord blood banking cost.

What Is Cord Blood and Why Do People Save It?

Cord blood is found in the umbilical cord and placenta. According to the American College of Obstetricians and Gynecologists (ACOG), the blood found in the umbilical cord is rich in a specific type of cell called hematopoietic stem cells, which have a unique ability to copy themselves and then mature into different types of blood cells. These cells can then be used to treat diseases that harm the blood and immune system, such as leukemia, certain cancers, sickle-cell anemia, and some metabolic disorders.

Families with a medical history that puts them at higher risk of developing one of these diseases might consider cord blood banking since it can help with future treatments. Typically, when a person chooses to do cord blood banking, they need to discuss it with their health care provider early enough in the pregnancy to learn and understand the process and create a plan. According to The Parent's Guide for Cord Blood Foundation, there are more than 80 diseases that have been successfully treated by using cells from cord blood.

How Is Cord Blood Collected and Stored?

Here's how it works: After the umbilical cord is cut, the obstetrician will harvest the stem cells in a non-surgical procedure by inserting a needle into the center of the umbilical cord to collect a small sample of blood. This procedure is painless for both the birthing parent and newborn. The cells can then be stored indefinitely in a secure holding environment and withdrawn when needed.

Cord blood stem cells can be donated for public use or registered privately within a family. The main difference between public and private cord blood banking is who is allowed to have access to it in the future.

What Is Private Cord Banking?

Families can pay to store cord blood at a private bank. The blood is reserved for their own family; nobody else can access or use it, and it will never be allotted to another family or donated to research.

Private cord blood banking may be most beneficial for those with a strong family history of certain diseases that harm the blood and immune system as the banked cord blood cells may offer a treatment option for the baby whose blood is banked or their biological family members. But there are limitations.

For example, biological family members who could use the blood may not be a match, and if the person whose cord blood is banked becomes sick, their banked blood cells may be of little help to them. If the person develops leukemia, for example, their own banked blood would not be useful since it would have pre-malignant leukemia cells.

What Is Public Cord Banking?

Public cord blood banks are nonprofit companies that store donated cord blood for free. The cord blood becomes available for people who require a transplant or research, so accessing your own cord blood in the future isn't guaranteed.

That said, the AAP recommends public cord blood banking because diseases that might require cord blood transplantation are very rare. The AAP also states that the chances of an infant's cord blood being used for transplantation are 30 times greater in the public cord blood banking system.

Moreover, the cord blood stored in public cord blood banks is subject to strict FDA regulation, external accreditation, and peer review, which gives public cord blood banking a higher quality control than private cord blood banking.

Cord Blood Banking Cost

Public cord blood banking is free. The participating hospital pays for the collection, testing, and storing of cord blood, which can be costly, and is why the service is not offered at every hospital.

Private cord blood banking, however, is expensive. According to the AAP, you can expect to pay between $1,350 and $2,350 for collecting, testing, and registering. You'll also pay $100 to $175 in annual storage and maintenance fees for private cord blood banking.

Both public and private cord blood banks require the birthing parent to be tested for various infections (like hepatitis and HIV)—and depending on factors like your insurance plan, this could add to the cost.

Why is the price of private cord blood banking so high? "This is a medical service that has to be done when your baby's cells arrive, and you certainly want them to be handled by good equipment and good technicians," says Frances Verter, PhD, founder and director of Parent's Guide to Cord Blood Foundation, a nonprofit dedicated to educating parents about cord blood donation and cord blood therapists. "It's just not going to be cheap."

Does health insurance cover cord blood banking?

No, health insurance companies will not typically reimburse families for any of the costs associated with private cord blood banking. That said, certain insurance companies may pitch in if a sibling needs to be treated with cord blood in the near future, Dr. Verter says.

Is financial aid available for cord blood banking?

Financial aid is available for some families who opt for private cord blood banking. If you have a sick child who could benefit from umbilical cord blood, banks may offer programs in which they'll cover free cord blood processing and storage. In other words, this financial aid is usually available only when your baby has a biological sibling with certain diseases.

When To Begin Planning Cord Blood Banking

Whether you ultimately choose to go with public or private cord blood banking, there is a lot to consider once your decision is made. According to the Health Resources & Services Administration (HRSA), you should begin talking to your doctor about cord blood banking approximately three months before your due date (between weeks 28 and 34 weeks). This gives the hospital time to prepare for processing your baby's cord blood.

Talk to your health care provider about why you wish to use cord blood banking to either store or donate cord blood. They will help you decide the best option. If you choose to donate cord blood to a public cord blood bank, you find participating hospitals through the Be The Match Registry.

Choosing to donate your baby's cord blood to a public cord blood bank is a fantastic idea. Not only will your baby's cells potentially help treat a future disease—in them or someone else—but those cells can also be used for research, which can help lead to possible cures and better treatments for many different diseases and conditions.