Can I use a Lifestyle Spending Account (LSA) for IVF treatments?

If you're exploring ways to finance fertility treatments like in vitro fertilization (IVF), you may be wondering if you can use your Lifestyle Spending Account (LSA) to cover these expenses.

LSAs are becoming an increasingly popular employee benefit, offering flexibility and choice in how you allocate funds towards your personal well-being.

In this article, we'll dive into what LSAs are and whether they can be used to support your family-building journey through IVF.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account is an employer-funded benefit that provides you with a set amount of money to spend on a variety of wellness-related expenses. Unlike traditional health insurance or Flexible Spending Accounts (FSAs) , LSAs offer more flexibility and choice in how you use your funds.

Your employer determines the amount they contribute to your LSA, as well as the eligible expense categories. These categories can be quite broad, encompassing everything from fitness and mental health to personal development and family planning.

The funds in your LSA are typically available to you on a use-it-or-lose-it basis within a set time frame, such as a calendar year. This means that if you don't use all of your LSA funds within the designated period, you may forfeit the remaining balance.

Examples of LSA eligible expenses

The specific expenses covered by your LSA will depend on your employer's program, but some common examples include:

• Gym memberships and fitness classes
• Exercise equipment and wearable fitness trackers
• Wellness apps and online fitness subscriptions
• Massage therapy and acupuncture
• Mental health counseling and therapy
• Stress management and mindfulness programs
• Financial planning and education
• Personal development courses and workshops
• Family planning expenses, such as fertility treatments and adoption

It's important to note that while LSAs can offer coverage for a wide range of wellness expenses, there may be some limitations or exclusions based on your employer's specific plan. Always review your LSA program details and guidelines to understand what is and isn't eligible for reimbursement.

Can you use an LSA for IVF treatments?

The short answer is yes, you may be able to use your Lifestyle Spending Account to cover expenses related to in vitro fertilization (IVF) treatments. However, it ultimately depends on your employer's specific LSA plan and what they consider eligible expenses.

Some employers are recognizing the importance of supporting their employees' family-building journeys and are including fertility treatments like IVF as part of their LSA eligible expense categories. This can be a game-changer for those who are struggling with infertility and facing the high costs associated with assisted reproductive technology.

When using your LSA for IVF, you may be able to cover expenses such as:

• Consultation fees with fertility specialists
• Diagnostic testing and lab work
• Medications for ovarian stimulation and egg retrieval
• Surgical procedures for egg retrieval and embryo transfer
• Cryopreservation (freezing) of eggs, sperm, or embryos
• Genetic testing of embryos

It's important to keep detailed records of all your IVF-related expenses, including receipts and documentation from your healthcare provider. This will be necessary when submitting claims for reimbursement through your LSA.

If you're unsure whether your LSA covers IVF or have questions about the claims process, reach out to your HR department or LSA plan administrator for guidance. They can provide you with specific details about your plan's eligible expenses and any requirements for reimbursement.

Maximizing your LSA for IVF and overall well-being

While using your LSA for IVF can be a significant help in covering the costs of fertility treatments, it's also important to consider how you can use your LSA funds to support your overall well-being during this challenging time.

Undergoing IVF can be physically, emotionally, and mentally taxing. In addition to using your LSA for the medical aspects of IVF, consider allocating some of your funds towards self-care and stress management. This might include:

• Acupuncture or massage therapy to promote relaxation and reduce stress
• Mental health counseling or therapy to support your emotional well-being
• Meditation or mindfulness apps to help manage anxiety and stress
• Nutritional counseling to optimize your diet for fertility and overall health
• Fitness classes or equipment to maintain physical health and manage stress

By taking a holistic approach and using your LSA to support both your IVF journey and your overall well-being, you can give yourself the best possible chance of success while also prioritizing your health and happiness.

Can IVF treatments be covered under a Lifestyle Spending Account?

Yes, many employers are now including family planning and fertility treatments as eligible expense categories in their Lifestyle Spending Account (LSA) programs. This means you may be able to use your LSA funds to cover some or all of the costs associated with in vitro fertilization (IVF) and other assisted reproductive technologies.

The specific fertility-related expenses covered by your LSA will depend on your employer's plan design. Some LSA programs may have a dedicated "fertility" or "family planning" category, while others may include these expenses under a broader "medical" or "wellness" category.

When using your LSA for IVF, it's important to review your plan documents and guidelines carefully to understand what expenses are eligible for reimbursement. Some common examples of fertility-related expenses that may be covered by your LSA include:

Examples of fertility-related LSA expenses

• In vitro fertilization (IVF) procedures: This may include costs associated with ovarian stimulation, egg retrieval, fertilization, and embryo transfer.
• Intrauterine insemination (IUI): IUI is a less invasive fertility treatment that involves placing sperm directly into the uterus to facilitate fertilization.
• Fertility medications: LSA funds may cover the cost of prescription medications used for ovarian stimulation, such as follicle-stimulating hormone (FSH) and human chorionic gonadotropin (hCG).
• Egg and sperm storage: If you're undergoing IVF or other fertility treatments, you may choose to freeze and store excess eggs, sperm, or embryos for future use. Your LSA may cover the costs associated with cryopreservation and storage fees.
• Genetic testing: Preimplantation genetic testing (PGT) is often used in conjunction with IVF to screen embryos for genetic disorders or chromosomal abnormalities before transfer. Your LSA may cover the costs of PGT.
• Donor services: If you require donor eggs, sperm, or embryos for your IVF treatment, your LSA may cover some or all of the associated costs, including donor compensation and agency fees.
• Surrogacy expenses: For those who need to use a gestational carrier to carry their pregnancy, LSA funds may be used to cover some of the costs associated with surrogacy, such as legal fees, agency fees, and medical expenses for the surrogate.

Keep in mind that while many LSA programs now include fertility treatments as eligible expenses, there may be some limitations or exclusions. For example, some plans may have a cap on the amount you can spend on fertility treatments, or they may require you to use in-network providers to be eligible for reimbursement.

To maximize your LSA benefits for IVF, work closely with your HR department or LSA plan administrator to understand your specific plan details and requirements. Keep detailed records of all your fertility-related expenses, including receipts and documentation from your healthcare provider, to ensure a smooth reimbursement process.

What are the benefits of using an LSA for IVF?

Using a Lifestyle Spending Account (LSA) to cover the costs of in vitro fertilization (IVF) can provide several significant benefits for employees who are undergoing fertility treatments.

Tax advantages

While the funds in an LSA are considered taxable income, they still offer a valuable financial benefit by allowing you to pay for IVF expenses with employer-provided dollars. This can help offset some of the out-of-pocket costs associated with fertility treatments, which can be substantial.

It's important to note that LSAs are different from Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs), which offer tax advantages by allowing you to contribute pre-tax dollars. However, LSAs still provide a financial benefit by giving you access to employer funds that can be used for a wide range of eligible expenses, including IVF.

Flexibility

Another key benefit of using an LSA for IVF is the flexibility it provides in covering a range of fertility-related expenses. While traditional health insurance plans may have limited coverage for fertility treatments, an LSA can be used to pay for a variety of expenses beyond just the medical procedures themselves.

For example, your LSA may cover costs such as fertility medications, genetic testing, egg and sperm storage, and even travel expenses related to IVF treatment. This flexibility can be especially valuable for those who may need to seek specialized fertility care outside of their local area.

Additionally, LSAs often have fewer restrictions and limitations compared to traditional health insurance plans. This means you may have more freedom to choose your fertility care providers and treatment options without being limited to in-network providers or facing strict coverage caps.

Recruitment and retention

From an employer perspective, offering LSAs that cover IVF and other fertility treatments can be a powerful tool for recruiting and retaining top talent. In today's competitive job market, employees are increasingly looking for companies that offer comprehensive and inclusive benefits packages.

By providing an LSA that supports employees on their family-building journeys, employers can demonstrate their commitment to the well-being and life goals of their workforce. This can be especially appealing to millennials and younger generations who are more likely to prioritize family-friendly benefits when considering job opportunities.

Moreover, offering LSAs for IVF can help improve employee satisfaction and loyalty. When employees feel supported in their personal lives and are able to access the resources they need to build their families, they are more likely to be engaged, productive, and committed to their employer over the long term.

In fact, a survey by FertilityIQ found that 62% of employees who received fertility coverage from their employer reported feeling more loyal and committed to their company as a result. This highlights the significant impact that offering comprehensive fertility benefits, such as LSAs for IVF, can have on employee retention and overall job satisfaction.

How to use your LSA for IVF expenses

If you've confirmed that your Lifestyle Spending Account (LSA) covers IVF treatments, the next step is to understand how to actually use your funds to pay for these expenses. The process may vary slightly depending on your employer's specific plan, but here are the general steps to follow.

Check your plan details

Before you start incurring IVF expenses, review your employer's LSA program rules and guidelines to confirm that IVF is indeed an eligible expense category. Look for any specific requirements or limitations, such as:

• Maximum dollar amount that can be used for IVF expenses
• Types of IVF expenses that are eligible (e.g., medications, procedures, storage fees)
• Required documentation or proof of medical necessity
• Timeframe for incurring and submitting expenses

Understanding these plan details upfront will help you make the most of your LSA funds and avoid any surprises or denied claims down the road.

Save documentation

As you begin your IVF journey, it's crucial to keep meticulous records of all your expenses. This includes itemized receipts, invoices, and any required doctor's notes or letters of medical necessity.

Make sure your documentation clearly shows:

• Date of service
• Description of the expense (e.g., "IVF medication - Gonal-F")
• Amount paid
• Provider name and information

Having this documentation organized and readily available will make the reimbursement process much smoother when it comes time to submit your expenses to your LSA plan.

Submit expenses for reimbursement

The final step is to actually submit your IVF expenses for reimbursement from your LSA. The exact process will depend on your employer's plan setup, but there are typically two main options:

1. LSA debit card: Some employers provide an LSA debit card that you can use to pay for eligible expenses directly. In this case, you would simply use your card to pay for your IVF expenses as they occur, and the funds will be deducted from your LSA balance automatically.
2. Claims submission: If your employer does not offer an LSA debit card, you will need to pay for your IVF expenses out-of-pocket and then submit a claim for reimbursement. This usually involves filling out a claim form and providing your expense documentation.

When submitting claims, be sure to follow your employer's specific instructions and deadlines. Some plans may require you to submit claims within a certain timeframe after incurring the expense, while others may have more flexible submission windows.

Once your claim is submitted, your LSA plan administrator will review your expenses to ensure they are eligible and properly documented. If approved, you will typically receive reimbursement via check or direct deposit within a few weeks.

By understanding your plan details, saving proper documentation, and submitting expenses in a timely manner, you can successfully use your LSA funds to help cover the costs of your IVF treatments and make your family-building dreams a reality.

Lifestyle Spending Account considerations for IVF

When using your Lifestyle Spending Account (LSA) to cover IVF expenses, it's important to familiarize yourself with your company's specific plan details. Each employer sets their own rules for LSA contributions, spending deadlines, and rollover policies, so understanding these parameters will help you maximize your benefits.

Your HR department or LSA plan administrator can provide you with information on the annual contribution limit for your account. This is the maximum amount your employer will fund your LSA each year. Knowing this limit will help you plan your IVF expenses accordingly and budget for any additional out-of-pocket costs.

It's also crucial to be aware of any spending deadlines associated with your LSA. Some plans operate on a use-it-or-lose-it basis, meaning any unspent funds at the end of the plan year will be forfeited. Other plans may allow a grace period or even a limited rollover of funds into the next year. Make sure you understand your plan's specific rules to avoid losing any of your valuable LSA dollars.

If your employer offers other health benefits like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) , you may be able to coordinate these with your LSA to maximize your savings. HSAs and FSAs offer tax advantages and can be used to pay for a wide range of medical expenses, including some fertility treatments. However, keep in mind that these accounts have their own contribution limits and rules, so it's important to understand how they differ from your LSA.

As with any medical expense, it's wise to be aware of IRS regulations regarding eligible expenses for reimbursement. While LSAs are not subject to the same strict rules as HSAs and FSAs, your employer may still choose to follow IRS guidelines for determining eligible expenses. If you have any questions about whether a specific IVF expense qualifies for reimbursement under your LSA, don't hesitate to reach out to your HR team or benefits provider for guidance.

By taking the time to understand your company's LSA policies, coordinating with other available benefits, and staying informed about eligibility requirements, you can make the most of your LSA funds and minimize your out-of-pocket costs for IVF treatment. Remember, your HR team is there to support you in navigating your benefits, so don't be afraid to ask questions and seek guidance throughout your journey.

Is using an LSA for IVF treatments worth it?

Deciding whether to use your Lifestyle Spending Account (LSA) for IVF treatments is a personal choice that depends on your individual circumstances and financial situation. For many employees facing the high costs of fertility care, an LSA can be a valuable resource to help offset some of the expenses associated with IVF.

IVF costs can easily reach tens of thousands of dollars , especially if multiple cycles are needed. Even with insurance coverage, out-of-pocket costs for medications, co-pays, and uncovered services can add up quickly. By using LSA funds to cover some of these expenses, you can reduce your financial burden and focus on your family-building journey.

In addition to the financial benefits, using an LSA for IVF can also provide emotional support. When an employer offers family-forming benefits through an LSA, it sends a message that they value their employees' personal well-being and life goals. This can help alleviate some of the stress and anxiety that often accompanies fertility treatments, knowing that you have your employer's support.

However, it's important to carefully consider your specific needs and financial situation before deciding to use your LSA for IVF. Review your LSA plan details to understand the eligible expenses, contribution limits, and reimbursement process. You should also factor in any other financial resources available to you, such as insurance coverage, personal savings, or fertility grants .

If you have a limited LSA balance and anticipate needing funds for other eligible expenses throughout the year, you may need to prioritize your spending. Consider creating a budget to help you allocate your LSA funds effectively and ensure you're making the most of this valuable benefit.

Ultimately, the decision to use your LSA for IVF is a deeply personal one that requires careful consideration of your unique circumstances. If you have questions or concerns about using your LSA for fertility treatments, don't hesitate to reach out to your HR representative or benefits provider for guidance and support. They can help you navigate your options and make an informed decision that aligns with your family-building goals and financial well-being.

Forma provides flexible benefits solutions that help you use your Lifestyle Spending Account (LSA) for expenses that matter most—including IVF treatments. With customizable plans and expert support, Forma ensures you maximize your benefits while navigating fertility costs.

‍Schedule a consultation with one of our experts today.