Many couples considering infertility or IVF treatments are often faced with a tough question: how are we going to pay for this? Most health insurance policies do not cover these treatments - unless you live in a state with mandated coverage, and work for a large employer. Many couples don't have that kind of cash, so they borrow money to fund the treatments - sometimes paying high fees. A common employee benefit program not only provides an interest free loan, it also cuts the cost of infertility treatments by 1/3 or more.
Most health insurance policies do not cover the cost of infertility treatments such as IVF and others. Fifteen states mandate varying degrees of coverage, and these mandates apply only to companies employing fifty or more employees. That leaves couples living in the thirty five other states, and those working for small employers with no coverage for these treatments.
IVF and other infertility treatments can cost $20,000 and upwards depending upon the procedure and the number of cycles they need to undergo. Many couples don't have the savings set aside to pay these fees upfront, so they seek out loans that allow them to pay over time - with interest.
A Healthcare Flexible Spending Account allows you to get an interest free loan from their employer, and cut your infertility costs by one third or more. For example, you could elect to contribute $10,000 into a flex account. The full amount of the election is available to be spent on qualifying expenses on the first day of the new plan year. Infertility treatments such as IVF are qualifying expenses. Schedule your infertility procedure for the beginning of your employer's flex plan year. Your employer funds the full $10,000 election, and you now have fifty two weeks to pay back your interest free loan!
But that's not all. You will be paying back your loan with pre-tax dollars, which may cut your costs by one third or more. If you are in the 25% federal income tax bracket, and paying FICA taxes of 7.65% your total savings is 32.65%. Savings may be higher for people in higher tax brackets, or those living in states with an income tax.
Struggling with infertility can be one of the most difficult things that you go through as a woman or as a couple. Wanting to have a baby is a fundamental need of many women and families and it can be devastating to try month after month to get pregnant with no success.
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