The Levin Letter: Fertility Cost Relief Act Would Help Americans Achieve Dream of Parenthood
Every year, millions of Americans seek fertility treatment, including IVF, to help them address infertility issues and welcome a new bundle of joy into their lives. According to the Pew Research Center, approximately 42% of American adults say they have used fertility treatments or personally know someone who has. In California alone, over 25,000 IVF procedures are performed annually.
Unfortunately, the high cost of IVF treatment makes it unaffordable for countless Americans who need it in order to build a family. According to the U.S. Department of Health and Human Services, the average cost for a successful pregnancy through IVF, which can take multiple cycles, is $60,000. IVF can cost Californians up to $24,000 out of pocket for one cycle alone. This hits home for many of our neighbors, and these costs are expected to rise as healthcare services become more expensive every year.
The laws have not kept up with the prevalence of IVF treatment. There are no federal laws to help cover the costs of IVF or to require health insurance companies to cover fertility treatments. Whether or not your insurance will pay for IVF is determined by individual state laws, forming a confusing patchwork that varies depending on where you live.
Most families only realize this when they start family planning and discover that IVF may be necessary. They experience the sticker shock when they attempt to undergo IVF, their health insurance doesn’t cover it, and no other resources are available.
That expensive reality hit a local couple who needed IVF treatment and discovered that they could be hit with a financial penalty.
Walt Bishop tried to take money out of his retirement account to cover the $25,000 cost of IVF and medications for his wife, only to discover that he would face early withdrawal penalties for using his own retirement savings to start a family. Like Walt, thousands of individuals face this financial penalty just for trying to start a family with their hard-earned retirement money.
Walt’s story inspired me to write and introduce the bipartisan Fertility Cost Relief Act alongside my Republican colleague Rep. Mike Carey of Ohio to prevent that retirement withdrawal penalty.
The bill would allow individuals to withdraw up to $20,000 from their IRA or 401(k) to pay for fertility treatment, including IVF, without penalty. Current law imposes a 10% tax penalty for any withdrawals before the age of 59½ from IRAs and 401(k)s. Congress has already created various exceptions to the early withdrawal penalty—for expenses like education, first-time home purchases, and the birth or adoption of a child—but not for fertility treatment. The Fertility Cost Relief Act would create that exception and ensure no one is penalized for withdrawing money from a retirement account to build a family.
This is a natural extension of the pro-family priorities that Americans across the political spectrum share. Helping mothers and fathers start and grow their families is about as fundamental as it gets. This bill doesn’t alleviate all the financial stress for couples undergoing IVF, but it is a sensible, commonsense starting point—and one we can build on.
Here in California, a newly implemented state law requires some health insurers to cover fertility preservation and IVF services. This benefits the many Californians who may need IVF but cannot shoulder the financial costs on their own. It is a step in the right direction to help families enter parenthood without IVF debt.
Expanding access to IVF is only one part of addressing a larger healthcare affordability challenge facing our country. Our healthcare challenges—from high premium costs to families struggling to keep their coverage—call for both parties to work together on solutions that lower costs and expand access. I truly believe that when we work together, we can deliver meaningful results for the people we serve.
I hope the Fertility Cost Relief Act can serve as an example of bipartisanship in action, bringing real financial relief to Americans who simply want to achieve the dream of parenthood.
By: Rep. Mike Levin
Source: Picket Fence Media