This act expands Health Savings Account (HSA) eligibility to cover costs associated with fertility treatments, including storage, artificial insemination, assisted reproductive technology, and related medications.
Lauren Underwood
Representative
IL-14
The Health Savings and Affordability for Fertility Act expands the definition of tax-free medical expenses eligible for payment using Health Savings Account (HSA) funds. This legislation specifically allows individuals to use HSA dollars for a wide range of fertility treatments, including IVF, artificial insemination, and the storage of reproductive materials. This change aims to increase affordability by allowing pre-tax savings to cover necessary family-building expenses incurred after the law's enactment.
New HSA Rule Makes Fertility Treatments Tax-Free: IVF, Egg Freezing Now Covered by Health Savings Accounts
The new Health Savings and Affordability for Fertility Act is a straightforward win for anyone using a Health Savings Account (HSA) who might need fertility treatments. This bill amends the tax code to officially add a comprehensive list of fertility-related expenses to the list of things you can pay for using your HSA funds, tax-free.
The Fertility Financial Lifeline
If you’ve ever looked into fertility treatments, you know they are incredibly expensive and often not covered by standard insurance. This bill directly tackles that financial burden by expanding the definition of a qualified medical expense under Section 223(d)(2)(E) of the tax code. Essentially, it means you can now use your pre-tax HSA dollars—money you already saved without paying income tax on it—to cover these costs without incurring penalties or taxes on the withdrawal.
What exactly qualifies now? The bill is very specific, covering the big-ticket items that hit people’s wallets hardest. This includes in vitro fertilization (IVF) and other Assisted Reproductive Technology (ART), as well as artificial insemination procedures. Crucially, it also includes the costs associated with saving reproductive material, like egg, sperm, or embryo storage, which can be a recurring expense for years. For couples or individuals relying on donors, the bill clarifies that costs related to gamete donation, including reimbursing the donor and covering their medical fees, are also covered.
What This Means for Your Budget
For the average person juggling a high-deductible health plan and trying to start a family, this is huge. Let’s say an IVF cycle costs $20,000. If you’re in the 25% tax bracket, paying that $20,000 with post-tax dollars means you had to earn about $26,600 just to cover the cost. By allowing you to use HSA funds, you save that difference—a significant chunk of change that stays in your pocket. This change applies to any expenses you incur after the date the law is signed, so it’s a forward-looking benefit.
This legislation doesn't create new insurance mandates or subsidies; it simply uses existing tax-advantaged savings vehicles to make a necessary, high-cost healthcare service more financially accessible. For the millions of Americans who rely on HSAs to manage their healthcare finances, this bill removes a major barrier and provides concrete financial relief for a complex, often emotionally draining, health journey.