Egg Donor Fees: FSA Eligibility

Egg Donor Fees: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Spending Account (FSA)
Egg donor fees for the individual, spouse or dependent, including legal, donor, testing and agency fees, when deemed medically necessary by a doctor who has provided a Letter of Medical Necessity (LMN) are eligible with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Egg donor fees are not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

Expenses for an egg donor that is not a covered spouse or dependent are not eligible.

Information Letter 2005-0102; Tax Court Memo 2008-293; Private Letter Ruling 200318017

What is egg donation?

Egg donation is part of artificial reproduction technologies and procedures. Egg donation is the procedure of harvesting a woman’s eggs. Several expenses are associated with the process of preparing a woman for egg donation, including legal fees, donor fees, testing fees, and agency fees. These fees support the entire process, and if deemed medically necessary for the patient in order to conceive, by a medical professional, then the fees are reimbursable under a consumer-directed healthcare account (Center for Human Reproduction).

Agencies typically require patients to apply for egg donation procedures, and will require payment of fees for legal concerns, pre-procedure tests, administration and agency fees, and so on. These fees are reimbursable under a consumer-directed healthcare account if the patient has obtained a Letter of Medical Necessity (LMN) for egg donation. The fees may be reimbursed for a patient who is the individual, the spouse, or a dependent.

How do I obtain a Letter of Medical Necessity (LMN) for egg donor fees?

A Letter of Medical Necessity (LMN) from a doctor for egg donation for an individual, spouse or dependent is necessary for reimbursement under a consumer-directed healthcare account. This letter must outline how a patient’s reproductive problems related to their medical condition necessitates egg donation.

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