When it comes to navigating the world of employee benefits, there’s a lot to take in, especially if you’re a first timer. Among the suite of benefits you’re likely to be offered, voluntary benefits are often misunderstood. What are Some Examples of Voluntary Benefits? Voluntary benefits include a variety of options, all designed to...
Support Your Employees’ Fertility Benefit Needs With an HSA or FSA
According to the World Health Organization, roughly one in six adults worldwide are affected by infertility. Reasons can vary, which is why wide-ranging fertility benefits can also improve the lives of any adult wanting to start a family. Did you know that a variety of fertility and infertility treatments are eligible for health savings account (HSA) and medical flexible spending account (FSA) funds?
What are Fertility Benefits?
Fertility benefits provide support and financial assistance to individuals or couples seeking fertility treatments or services. These benefits are designed to help people who are facing difficulties conceiving naturally and require medical assistance to achieve pregnancy.
Fertility assistance and treatments can be costly, with little to no coverage. Most people using fertility services pay thousands of dollars out of pocket without insurance.
What are Some Fertility Treatment Examples?
There is a wide range of potential treatments and services, including:
- In vitro fertilization (IVF)
- Fertility medications
- Diagnostic testing
- Egg freezing
- Fertility counseling and consultations
- Adoption assistance
- And more
What Fertility Treatment Does an HSA or FSA Cover?
Fertility treatments will qualify for HSA and medical FSA funds to the extent that procedures are performed on the participant, spouse or another individual whose expenses are eligible for tax-free reimbursement. Examples are:
- IVF (in vitro fertilization — including temporary storage of eggs or sperm)
- Surgery (including an operation to reverse prior surgery preventing someone from having children)
- GIFT (gamete intrafallopian transfer)
Expenses paid to or for an in vitro surrogate usually do not qualify, nor do egg donor expenses unless preparatory to a procedure performed on the participant, spouse or another individual whose expenses are eligible for tax-free reimbursement.
What Infertility Treatments are Covered by an HSA or FSA?
- Egg donor fees
- Egg donor fees, when deemed medically necessary by a doctor who has provided the information needed, are covered by an HSA and FSA.
- Eggs and embryos
- An FSA and HSA will cover temporary storage for fertility storage. It will also cover any procedures to implant donor eggs and embryos, also including fertility medication. An FSA will not cover long-term storage.
- Surrogate expenses
- Neither a HSA or FSA will cover surrogate mother expenses.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.