Egg Recipient Fees: HSA Eligibility

Egg recipient fees for the individual, spouse or dependent, including legal, recipient, testing and agency fees, when deemed medically necessary by a doctor who has provided a Letter of Medical Necessity (LMN) are eligible with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Egg recipient fees are not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What is an egg recipient?

Egg recipients make use of artificial reproduction technologies and procedures. Egg implantation is the procedure of receiving a woman’s harvested eggs. Several expenses are associated with the process of preparing a woman to receive eggs, including legal fees, donor/recipient fees, testing fees, and agency fees. These fees support the entire process, and if deemed medically necessary for the patient in order to conceive by a medical professional, then the fees are reimbursable under a consumer-directed healthcare account.

Agencies typically require patients to apply for egg implantation procedures, and will require payment of fees for legal concerns, pre-procedure tests, administration and agency fees, and so on. These fees are reimbursable under a consumer-directed healthcare account if the patient has obtained a Letter of Medical Necessity (LMN) for egg implantation. The fees may be reimbursed for a patient who is the account holder, spouse, or a dependent.

How do I obtain a Letter of Medical Necessity (LMN) for egg recipient fees?

A Letter of Medical Necessity (LMN) from a doctor to receive eggs for an individual, spouse or dependent is necessary for reimbursement under a consumer-directed healthcare account. This letter must outline how a patient’s reproductive problems related to their medical condition necessitates receiving eggs.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

Specifically Not Covered

Expenses for an egg recipient who is not a covered spouse or dependent are not eligible.

Legal Information / Regulations

Information Letter 2005-0102; Tax Court Memo 2008-293; Private Letter Ruling 200318017

 


AZ-PROD-WEB02 11/20/2017 3:42:36 PM