Financial Strategies for Infertility Patients

April 25, 2008

Information Compiled By:
Diane, a member of FortilitySM

Be an informed consumer.
Schedule consultations with several qualified physicians to compare charges for the procedures you may need. If Dr. A charges $3,000 more for an IVF cycle than Dr. B or Dr. C and you feel equally comfortable with all the doctors, why pay more for the same service?

Compare prescription prices.
Before filling a prescription, call several pharmacies to compare prices on expensive fertility drugs such as Metrodin, Lupron and HCG. Many times the small pharmacies are less expensive than the big chains.

Seek out individuals who have excess medications.
Your local infertility support group or doctor’s office may be able to put you in touch with someone who wishes to sell or even donate medications they no longer need.

Bundle expenses into one tax year.
If you itemize deductions on your federal tax return, anything you spend on medical needs over 7-1/2% of your adjusted gross income is a deduction. For example, if a couple with an AGI of $60,000 has $12,000 of medical expenses in 1997, they can reduce their taxable income by $7,500. In the 28% tax bracket, that means their federal taxes due are reduced by $2,100. And don’t forget to include all the other miscellaneous medical expenses you’ve had all year; i.e. HMO co-payments for doctors and prescriptions, your portion of the premium paid for your health insurance, eyeglasses and contact lenses.

Pre-pay procedures and medications.
For instance, if you plan an IVF procedure in early 1998 and have already met the 7-1/2% requirement mentioned above in 1997, ask your doctor if you can pre-pay in late 1997 or the next year’s IVF cycle. The tax reduction may be in your favor even if you must borrow money to pre-pay.

If you borrow money, make the interest deductible.
Consider obtaining a home equity line of credit; the rate of interest is much lower than most credit cards or personal loans and the interest is an itemized deduction on your federal income taxes. Once again, this will reduce your federal tax bill. A note of caution; defaulting on a home equity loan could result in your losing your home.

Access retirement funds.
Beginning in 1997, the normal 10% penalty for early withdrawal from an IRA won’t apply if the money is used for medical expenses exceeding 7-1/2% of your adjusted gross income.

Become your own insurance advocate.
Get a copy of your insurance contract or group agreement from your insurance carrier or employer. Unless a procedure is specifically excluded, you should submit a claim to your carrier. For instance, if your policy excludes IVF, GIFT and ZIFT procedures, but does not specifically exclude the office visits, blood tests and ultrasounds associated with the procedure, you should submit a claim. Your physician can assist you by breaking down the individual components of the procedure into specific billing codes. Remember, your insurance policy is a contract and should be read literally; do not allow anyone to “read between the lines” and interpret anything that is not specifically stated.

Adopting?
Starting in 1997, moderate-income taxpayers will be able to use a tax credit of $5,000 per adopted child ($6,000 if the child has special needs) for qualified expenses. The full credit is available if your adjusted gross income is less than $75,000. The credit gradually shrinks to zero for those earning $115,000 or more.

Get some perspective
We spend upwards of $20,000 for a new car that we might keep 8 or 10 years. Isn’t a child worth more than that?
Copyright 1997. The American Surrogacy Center, Inc.(TASC), Kennesaw, GA

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Article Source: Surrogacy.com

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