Health Care Bill Raises Cost of Infertility Treatments in 2013

Buried in the 2,000 page health care reform bill is taxHowever the IRS limits these deductions to the
language that will raise the cost of infertilityamount over 7.5% of adjusted gross income.
treatments beginning in 2013. Many infertilityAdjusted gross income is the total income earned by
treatments are self paid: most insurance plans providea couple. Take for example a couple undergoing one
no coverage, so couples trying to conceive must payIVF cycle. The average cost of IVF is about $12,000.
out of pocket. These expenses are tax deductible,If the couple has a $100,000 adjusted gross income
but the bill raises the threshold for itemized(AGI), their threshold is $7,500. This means the
deductions beginning in 2013, thereby raising costs.couple can deduct $4,500 of their IVF costs, saving
Most insurance plans provide little or no coverage forabout $1,125 in taxes if they are in the 25% tax
infertility treatments. Only fourteen states mandatebracket.
some level of infertility coverage, and these lawsBeginning in 2013 the Health Care Reform Bill
contain many exceptions and loopholes. Couplesstipulates that the threshold for itemized deduction
trying to conceive must often pay expenses forfor un-reimbursed medical expenses will be increased
infertility treatment out of pocket.from7.5% of adjusted gross income to 10.0%. In the
Couples do get some relief for un-reimbursed medicalexample above this lowers the eligible deduction to
expenses through the tax code. Most of the$2,000 and the tax savings to $500.
non-covered infertility treatment options areMore than ever before, couples trying to conceive
considered tax deductible. This list includes diagnosticneed to understand infertility insurance mandates, the
testing, fertility drugs, IVF and other assistedtax code, and how to leverage supplemental
reproductive techniques, as well as travel costs.insurance.