Why is Cord Blood Banking so Expensive? (2024)

September 2012

Dennis Todd, PhD & Frances Verter, PhD

You've just visited the doctor and the good news is that you're going to have a baby and everything looks good. Thirty years ago, your doctor may have given you a baby book and information about products that sponsors want you to buy for your new addition. Today, along with pretty much the same materials, you'll be asked to consider saving the blood of your newborn that's left over in the umbilical cord and placenta after the delivery. Another big decision, and possibly a costly one.

So what are your options? You have three choices. One is to store the cord blood with a private company at a cost to you ranging from $1,500 to $2,500 and an annual storage fee in the ballpark of $125. Secondly, you can donate the cord blood to a public bank, if there is one working with your hospital, and your doctor is on board with the idea. There are also public banks that accept mail-in donations, if you register during your second trimester and your doctor is willing to take a short training class on-line. Zero cost to you. The third option is to do nothing and have the cord blood, umbilical cord, and placenta destroyed as medical waste.

Why should you consider donating the cord blood to a public bank? Simply because, besides bringing a new life into the world, you could be saving an individual whose best chance at life is a stem cell transplant with your baby's donated cord blood. This can only happen if you donate and if your baby is a close enough match for a patient in need. If you chose to reserve the cord blood for your family, then siblings who have the same parents have a 25% chance of being an exact match.

Are public banks and family banks the same, except for who may use the cord blood and the cost to the parents? No. Public banks are subject to much higher regulatory requirements, and compliance with regulations carries costs. At a family bank you pay the bank enough to cover the cost of storing your baby's cord blood, plus they make a profit. When you donate to a public bank, it costs you nothing, but the bank pays more on processing each blood collection than at a family bank. Let's look at the steps that take place in the laboratory.

Both public and family cord blood banks must register with the US Food and Drug Administration (FDA), and since Oct. 2011 public banks also need to apply for an FDA license. All cord blood banks are required by federal law to test the blood of the mother for infectious diseases. At public banks the screening is usually more extensive, similar to the tests performed when you donate blood. The typical expense to a public bank is $150 per unit.

The next step at either a public or family bank is to process the cord blood to separate the blood component holding stem cells. The final product has a volume of 25 milliliters and includes a cryoprotectant which prevents the cells from bursting when frozen. Typical cost, $250 to $300 per unit.

Prior to freezing the cells, samples are taken for quality testing. Banks measure the number of cells that are positive for the CD34 marker, a protein that is used to estimate the number of blood-forming stem cells present. Typical cost, $150 to $200 per unit. They also measure the number of nucleated cells, another measure of stem cells, both before and after processing to determine the cell recovery rate. Typical expense, $35 per unit. A portion of the sample is submitted to check that there is no bacterial or fungal contamination. Typical expense, $75 per unit. Public banks will also check the ability of the sample to grow new cells by taking a culture called the CFU assay. Typical expense, $200 to $250 per unit.

When all the processing and testing is complete, the cord blood stem cells are frozen in cryogenic nitrogen freezers at -196° C until they are requested for patient therapy. Public banks are required to complete the entire laboratory processing and freeze the cord blood stem cells within 48 hours of collection. This is to insure the highest level of stem cell viability. The accreditation agencies allow family banks a window of 72 hours.

To save money, public banks will not even process a cord blood donation unless they know in advance that they are going to keep it. When the collection first arrives at the lab, it is passed through a cell counting machine. Only collections that have at least 900 million nucleated cells are kept. As a result, over 60%-80% of cord blood donations are discarded. The public bank must absorb the expense of the collection kit and delivery charges for discarded blood; typically $100 per unit.

An additional cost that is borne only by public banks is the "HLA typing" that is used to match donors and patients for transplants. This is an expensive test, running about $75 to $125 per unit. Family banks always defer this test until it is known whether a family member might use the cord blood for therapy.

After all is said and done, the cost to collect, test, process and store a donated cord blood collection at a public bank is estimated to be $1,200 to $1,500 dollars for each unit banked. That does not include the expense for the regulatory and quality systems needed to maintain licensure, or the cost of collecting units that are discarded because they don't meet standards.

When you consider that public banks can only expect to ship 1-2% of their inventory for transplant, you can quickly understand why most public banks are struggling to make ends meet. That struggle means that fewer collection programs are staffed, and there are fewer opportunities for parents to donate to the public good. We said earlier that public banks only keep cord blood donations over a minimum of 900 million cells, but today most public banks have raised that threshold to 1.5 billion cells. The reason is that the largest units are the ones most likely to be used for transplants that bring income to the bank. Family cord blood banks do not need to impose volume thresholds because they have a profit margin on every unit banked.

Dennis Michael Todd, PhD, joined Community Blood Services as its President and CEO in 2000. Community Blood Services operates the NJ Cord Blood Bank and The HLA Registry bone marrow donor center, both of which are affiliated with the National Marrow Donor Program (NMDP). In 2012, the blood center expects to distribute over 85,000 units of red cells and 20,000 platelets to hospitals and medical centers throughout northern NJ and Orange County, NY. Dr. Todd is presently a member of the NMDP Executive Committee and Chairman of the Finance Committee. He is a member of the International Society for Cellular Therapy (ISCT), the International Society for Stem Cell Research (ISSCR), the AABB, the American Association of Bioanalysts, and the New Jersey Society of Blood Bank Professionals.
Frances Verter, PhD, founded the Parent's Guide to Cord Blood in 1998 and has been a Scientific Advisor to Community Blood Services since 2007. In 2011 the NMDP presented her with their Lifeline Award in recognition of her efforts to improve public education about cord blood donation.

Why is Cord Blood Banking so Expensive? (2024)

FAQs

Why is Cord Blood Banking so Expensive? ›

At a family bank you pay the bank enough to cover the cost of storing your baby's cord blood, plus they make a profit. When you donate to a public bank, it costs you nothing, but the bank pays more on processing each blood collection than at a family bank.

Why is cord blood banking so expensive? ›

The bank may also use the donated cord blood for research. Private (commercial) cord banks will store the donated blood for use by the donor and family members only. They can be expensive. These banks charge a fee for processing and an annual fee for storage.

What is the reason umbilical cord blood is so valuable? ›

Cord blood is the blood left in the umbilical cord after birth. It contains stem cells. These cells have the amazing ability to grow into many different kinds of cells, like bone marrow cells, blood cells, or brain cells. This can make them valuable for treating some diseases.

Is it worth paying for cord blood storage? ›

Doctors do not recommend that you bank cord blood on the slight chance that your baby will need stem cells someday. If your baby were to need stem cells, he or she would probably need stem cells from someone else rather than his or her own stem cells.

Do doctors recommend cord blood banking? ›

Doctors do not recommend that you bank cord blood on the slight chance that your baby will need stem cells someday. If your baby were to need stem cells, he or she would probably need stem cells from someone else rather than his or her own stem cells.

Does insurance pay for cord blood banking? ›

Some insurance providers will cover the cost of cord blood banking when collection is medically necessary. For example, depending on the provider, families with a history of leukemia or other blood disorders may be eligible for total or partial coverage of the costs of cord blood collection and storage.

What are the cons of cord blood banking? ›

A disadvantage of cord blood is that it does not contain many stem cells. Units from several donors can be combined to increase the number of stem cells if a transplant is needed for an adult. What is an autologous transplant? In an autologous transplant, the cord blood collected at birth is used by that same child.

Why is cord blood a valuable resource? ›

Cord blood is the blood left behind in the placenta and umbilical cord after the birth of a baby. It is a rich source of blood-forming stem cells that can be used for both children and adults needing bone marrow transplants.

What do hospitals do with the umbilical cord after birth? ›

Usually, the umbilical cord and placenta are discarded after birth. If a mother chooses to have her cord blood collected, the health care team will do so after the baby is born. With a sterile needle, they'll draw the blood from the umbilical vessels into a collection bag.

Is umbilical cord blood worth it? ›

Umbilical cord blood is a very good source of stem cells, and these blood stem cells are useful in the treatment of many blood disorders and cancers. T​he placenta, umbilical cord and the blood within it are very important in pregnancy. However, the blood serves no purpose after delivery if discarded.

Is it better to donate or keep cord blood? ›

Typically the umbilical cord and placenta are discarded after your baby is born—unless you decide otherwise. You can choose to have your baby's cord blood collected and donated to a public cord blood bank, stored in a family (private) cord blood bank, or saved for a biological sibling who has a diagnosed medical need.

Which cord blood banking is best? ›

The 7 Best Cord Blood Banks of 2023
  • Best Overall: Cord Blood Registry (CBR)
  • Best Value: Americord.
  • Best Customer Support: Cryo-Cell.
  • Best Variety and Flexibility: StemCyte.
  • Best for Families With Medical Conditions: Viacord.
  • Best for Placenta Banking: Lifebank USA.
  • Best Processing Time: MiracleCord.
Jun 14, 2023

Is cord blood storage tax deductible? ›

Cord blood banking may be tax deductible under certain circ*mstances. If your child or family member has a medical condition with an immediate need for an FDA approved treatment with cord blood, the cost of collection, processing, and storage may be tax deductible.

How many years should you bank cord blood? ›

Choices for storing cord blood

After collection, the blood is sent to the facility of your choice, where it will be processed and then frozen in storage. No one is certain how long cord blood lasts. Some experts believe it can be stored for 21 years or more.

What is the average cost of cord blood banking? ›

If parents choose to store their infant's cord blood in a private bank, a collec- tion fee that ranges from $900 to $2000 and an annual storage fee of approximately $90 to $150 may be required. Fees vary between private banks. How do we decide whether to donate?

What percentage of people do cord blood banking? ›

According to Cell Trials Data, a provider of data on clinical trials of advances cell therapy, cord blood banking rates are highest in the US, at 3% of births each year.

How much does it cost to put cord blood in a bank? ›

If parents choose to store their infant's cord blood in a private bank, a collec- tion fee that ranges from $900 to $2000 and an annual storage fee of approximately $90 to $150 may be required. Fees vary between private banks. How do we decide whether to donate?

What is the deal with cord blood banking? ›

Cord blood banking is a choice for parents who want to preserve the blood of the umbilical cord and placenta of their baby to help with possible future medical needs of their child. It can also be used for other biologically matched children, either in their own family or the general public.

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