Are fees associated with gathering, registering and storing cord blood

[Guest Linda Wyttenbach]

Are fees associated with gathering, registering and storing cord blood and stem cells from a newborn at a cord blood bank a reimbursable expense under a FSA? My response would be no, but would like other opinions.

Thank you.

[KIP KRAUS]

I don't know exactly what the purpose of cord blood and stem cell colection and storage is intended to accomplish, but IRS Publication 502 states the following as it relates to qualified medical care, "Medical care expenses include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatment affecting any part or function of the body. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness."

If this cord blood and stem cell collection and storage is only for a what if situation, and not based on a current defect or illness, I'd agree that it does not qualify. On the other hand, maybe someone out there has seen a court case related to this particular issue.