September 15, 2014
This is the time of year when many employers and insurance companies hold open enrollment for insurance plans, for the upcoming year. Along with the usual medical, dental, and life insurance plans, many families also opt to enroll in a Medical Flexible Spending Account (or FSA). This type of account offers tax advantages for eligible healthcare costs throughout the year for you and all your dependents. Your Medical FSA is funded by pre-taxed payroll deductions in the amount you choose and covers a wide range of eligible medical expenses including those that result from the diagnosis, care, treatment, or prevention of disease or illness.
One potentially eligible expense with your Medical FSA that many families are not aware of is umbilical cord blood and tissue banking! Fees for storing umbilical cord blood and tissue to be used for surgery of the child or a family member in the near future (generally within one year) are an eligible medical expense.
This is great news for families who have chosen to bank their newborn’s blood because someone in the family, typically a sibling, is suffering from a genetic disease or disorder, that cord blood is currently being used to treat.
In addition to cord blood banking as an eligible FSA expense, you can also benefit from certain tax advantages to store your baby’s cord blood. As of 2013, if your child or a family member has a medical condition that might be expected to improve (through the use of cord blood), you can deduct your out-of-pocket expenses from your income taxes!
The range of diseases that doctors can treat with cord blood is vast. More than 80 diseases are currently known to respond to cord blood stem cells transplants and, as more are studied and tested, that number is sure to grow.
Private cord blood banking (also known as family banking), is preferred for families in a situation, where they currently have a family member suffering from a genetic disorder or have a family history of this type of disorder. By using a private cord blood bank, such as CariCord, your baby’s cord blood and tissue are stored for exclusive use by your family. It will always be there and readily available if it is ever needed. If it is donated to a public bank it can be accessed by anyone who is a match to it and there are no guarantees that it would be available, should your family ever need it later.