Do Insurance Companies Cover Cord Blood Banking?

When considering banking baby’s umbilical cord blood, the first questions are often "How can I pay for cord blood banking?" and "Does insurance cover the costs?”

We rounded up the top ten insurance companies for you to help clarify their reimbursement policies. Learn how you can pay for cord blood banking through insurance, Flexible Spending Accounts, Health Spending Accounts, and more!

Some insurance providers will cover the cost of cord blood banking when collection is medically necessary. For example, depending on the provider, families with a history of leukemia or other blood disorders may be eligible for total or partial coverage of the costs of cord blood collection and storage.

Among the top ten insurance providers, coverage varies for both cord blood banking and stem cell treatments, as follows:

Yes. FSAs (Flexible Spending Accounts), HSAs (Health Spending Accounts), and HRAs (Health Reimbursement Arrangements) are all special un-taxed accounts you can use to pay for out-of-pocket healthcare costs. FSA and HSA accounts will sometimes cover cord blood banking when medically necessary.

According to the FSA store, account holders are eligible for cord blood storage with a Letter of Medical Necessity from a physician. A Letter of Medical Necessity must state that the cord blood will be used to treat an “existing or imminently probable disease.”

See if cord blood banking is tax deductible for you: if your child or a family member has a medical condition that could be treated by cord blood, then your expenses will be tax-deductible.

Use a payment plan: some cord blood banking covered by insurance will allow you to pay in installments. Americord offers a 24-month payment plan to families who would prefer not to pay the entire cost upfront.

Prices vary among cord blood banks, so make sure to comparison shop. There are so many options when it comes to cord blood banking insurance that it can be overwhelming. That’s why we created our pricing calculator so that you can see where your dollars will stretch the farthest.

If your insurance will cover your cord blood costs, there are several Current Procedural Terminology (CPT) codes you should know for billing. A CPT Code is used to report medical procedures to health insurance companies to aid with billing.

Insurance companies also use ICD code for cord blood collection. An ICD code stands for the International Classification of Diseases, and it’s a system used to classify all diagnoses and procedures in the United States.

Stem cells from cord blood have been used to save countless lives for almost three decades, and doctors are discovering new ways that cord blood could potentially be used to treat diseases like Alzheimer’s and ALS. Today, more than 80 diseases, including leukemia and other blood disorders, can be treated with stem cells from cord blood. Since it can be frozen for up to 20 years, stem cells from your child’s cord blood will be on-demand in case your child—or their siblings—ever needs it. To find out the true costs of cord blood banking, click here.

Sources:

•  Anthem.com: Medical Policies
•  A. (n.d.). Stem cells for hematopoietic cell transplant - Medical Clinical Policy Bulletins | AETNA. Aetna.
•  Resources and tools for providers and health care professionals | UHCprovider.com. (n.d.).
• Health Encyclopedia: Search health topics | Kaiser Permanente. (n.d.). Kaiser Permanente.
• Wellness Library | Cigna. (n.d.).
•  TRANS.00028 Hematopoietic stem cell transplantation for hodgkin disease and non-Hodgkin lymphoma. (2023, April 12).
• MCD Search. (n.d.).
•  Cord Blood Storage | FSA Store. (n.d.). Shop All Cord Blood Storage AND Constant(' Products From ’) AND Site.displayName AND Constant('. ’) AND Site.displayName AND Constant(' Is Your One-stop-shop for Flexible Spending Accounts Where You Can Buy FSA Eligible ’) AND Category.displayName AND Constant(' Products.’)}.
•  IRS: PDF
•  Medical Coding & Billing Tools - CPT®, ICD-10, HCPCS Codes, & Modifiers - Codify by AAPC. (n.d.).
•  CPT® Code 38205 - Bone Marrow or Stem Cell Services/Procedures - Codify by AAPC. (n.d.).

The views, statements, and pricing expressed are deemed reliable as of the published date. Articles may not reflect current pricing, offerings, or recent innovations.