Cord blood storage is a topic that many individuals consider when planning for their family's future healthcare needs. However, it is important to understand what expenses qualify under a Health Spending Account (HSA).
According to the guidelines outlined by the Canada Revenue Agency (CRA), cord blood storage, for any purpose, is not considered an eligible medical expense under an HSA. This applies whether the storage is for potential future medical use, personal peace of mind, or for any other reason.
Why Is Cord Blood Storage Not Eligible?
To qualify as an eligible expense under an HSA, a medical service or product must meet the criteria set forth by the CRA's Income Tax Folio S1-F1-C1 on Medical Expense Tax Credit (METC). These criteria generally require that the expense be incurred for the diagnosis, treatment, or prevention of an illness as prescribed by a medical practitioner. Cord blood storage does not meet these criteria, as it is considered a preventative or elective service rather than a medically necessary treatment.
Examples of Ineligible Cord Blood Expenses:
Initial collection and processing fees for cord blood banking.
Annual or lifetime storage fees.
Private or family cord blood banking services.
If you have any questions about what is and isn't eligible under your HSA, feel free to reach out to our support team at support@getmyhsa.com. We are here to help ensure you make the most of your available benefits while staying within the CRA's guidelines.