In recent years, the landscape of healthcare expenses considered eligible by the CRA for reimbursement through a Health Spending Account (HSA) has expanded, providing individuals with greater flexibility in managing their method of growing their family. One notable area of interest is surrogacy expenses. While most fertility-related expenses are eligible under HSA guidelines, it's essential to understand the nuances, especially concerning surrogacy.
According to the Canada Revenue Agency (CRA) rules, certain expenses related to surrogacy are indeed eligible for reimbursement through an HSA. However, it's crucial to note that not all expenses incurred by a surrogate mother or the family who have them for surrogacy are covered.
Covered Expenses:
Surrogate Service Fees:
The primary expense covered under HSA guidelines is the payment for the surrogate service itself. This includes compensation for the surrogate mother for carrying and delivering the baby. (In Canada, the process of hiring a surrogate is subject to strict regulations outlined in the Assisted Human Reproduction Act (AHRA). However, due to the restrictions on paying surrogates directly for their services, many intended parents in Canada choose to pursue surrogacy arrangements outside of the country where commercial surrogacy is legal. Out-of-country costs for hiring a surrogate are eligible for reimbursement, as long as the process is diligently documented for the claims.)
Consultation for Surrogacy:
Expenses related to consultations with professional agencies regarding surrogacy arrangements are also eligible for reimbursement.
Storage of Reproductive Materials:
Expenses associated with the storage of reproductive materials, such as sperm, ova, embryos, and other relevant biological samples, are eligible under an HSA. This provision acknowledges the ongoing costs associated with preserving reproductive materials for future use.
Not Covered Expenses:
Surrogate Mother's Health Expenses:
The CRA guidelines do not extend to cover the surrogate mother's health expenses related to carrying and delivering the baby. These expenses are considered personal medical costs and are not eligible for reimbursement through an HSA.
Surrogacy expenses can be a significant financial consideration for individuals or couples seeking alternative methods to start or expand their families. While HSAs offer a valuable tool for managing healthcare costs, it's essential to grasp the specific guidelines regarding surrogacy expenses. By adhering to these guidelines, individuals can make informed decisions and ensure proper utilization of their HSA funds.
For further clarification or questions regarding surrogacy expenses and HSA eligibility, please reach out to support@myhsa.com and we will put you in touch with our Adjudication Management team.