Would cord blood preservation fall within the flexiblespending parameters?

[Rai401k]

I have a question about something many people haven't heard of yet.

The newest thing now when people have babies, is cord blood preservation.

There is typically a several hundred to over a thousand dollar initial cost depending on the facility you choose.

I have a client that might be doing this, would it fall within the flexible

spending parameters?

[Guest JerseyGirl]

Possibly. I believe the circumstances surrounding the decision to preserve the cord blood will determine eligibility on an individual basis. If, for example, it is known that the newborn will have a birth defect which can be helped in some way by the use of the cord blood in the foreseeable future, then with the proper documentation (statement of pertinent facts from the attending physician), I would consider it to be a reimbursable expense. If it is to be preserved and stored *just in case*, then I would say it is not medically necessary and not eligible.

There is also the issue of how long, and at what cost, will *preservation* be required— if the storage expense is for beyond the end of the plan year, I doubt the IRS would look too favorably upon reimbursement of the fees (think multiple years of Orthodontia treatment). You could, however reimburse for the initial preservation and storage for the remainder of the current plan year, and then reimburse for year 2 of storage fees through next years plan, if it is known now that the child will be needing it for treatment that could not be rendered until they reach a particular age,weight or stage of development.

Hope this helps.

[Mary C]

This topic was discussed a while back on the boards. I believe there was an IRS revenue ruling or opinion that if the cord blood would be used to help correct a birth defect or disease, it was allowed. However, if it was collected only as a precaution for "possible" future use, it was not allowed. Try a search of these boards or the Q&A's.