Umbilical cord blood storage: FSA Eligibility

Umbilical cord blood storage: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Savings Account (FSA)
Umbilical 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 reimbursement arrangement (HRA). Umbilical cord blood storage reimbursement is not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

Umbilical cord blood storage as a precautionary measure to treat a disease that may or may not develop may be eligible with a Letter of Medical Necessity (LMN).

What is umbilical 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 (American Pregnancy Association).

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.