Before taking fertility drugs keep in mind what often happens soon afterwards: you get pregnant, have a baby, go on maternity leave, and take on expenses for raising, feeding, and clothing your child. It pays to research tax impacts of your decision, and get the right insurance plans in place. Once you are already pregnant, your window of opportunity will be closed. Pregnancy is a preexisting condition for most insurance plans.
Tax Considerations
Many couples find that their insurance does not cover many fertility drugs and other forms of treatment. The IRS tax code allows you to deduct these expenses, or at least those un-reimbursed medical expenses that exceed 7.5% of your adjusted gross income. If your planned infertility drug and treatment expenses are not expected to be that high, consider using your health care flexible spending account at work instead. You will get immediate tax savings on these expenses.
Get the Right Insurance Coverage
Double check your health insurance plan to verify what is and is not covered by your plan. Most plans will not cover infertility treatments of any kind, and depending upon your state of residence you may find large maternity related deductibles or co pays, and in some cases you may need to purchase a maternity rider to insure your basic medical needs are covered.
In addition, consider purchasing supplemental insurance which will help create maternity leave income, and provide added security during your pregnancy in case of complications. But be sure your coverage begins before you begin taking any fertility medications. Pregnancy is considered a pre-existing condition.
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