Cord Blood May Become an IRS Qualified Medical Expense

Last week, US representatives Ron Kind (D-WI), Wally Herger (R-CA), Artur Davis (D-AL), Bill Pascrell Jr. (D-NJ) and Mike Thompson (D-CA) introduced the Family Cord Blood Banking Act.  This act will amend Internal Revenue code to add cord blood banking services as a qualified medical expense.  This would allow individuals and couples to pay for umbilical cord blood banking services through flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs) or the medical expense tax deduction.

Cord blood is used to treat more than 70 diseases in adults and children.  Since it can only be banked during a baby’s birth, it makes sense for it to be a qualified medical expense.  This legislation could make this an option for more families facing potentially life-threatening diseases,  increase the supply of cord blood stem cells and lower the cost for families in the future.

This measure is supported by the Brain Injury Association of America, the National Association of Nurse Practitioners in Women’s Health, and the Parent’s Guide to Cord Blood Foundation.

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