Stem Cell Storage: FSA Eligibility

Stem cell storage with a Letter of Medical Necessity (LMN) from a medical doctor is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA). Stem cell storage is not eligible with a dependent care flexible spending account (DCFSA) or a limited care flexible spending account (LCFSA).

What is stem cell storage?

Stem cell storage is the process of placing stem cells into cryostorage. Stem cells are normally collected during pregnancy or immediately after childbirth from the umbilical cord. Stem cells collected during pregnancy are withdrawn via amniocentesis. Stem cells collected from the umbilical cord are found in the cord blood, which is referred to as cord blood storage.

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.

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. 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 reimbursement. 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 reimbursement through a consumer-directed healthcare plan.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB01 11/19/2017 9:41:27 PM