Have you taken advantage of the new tax benefits for breastpumps and supplies yet? If not, here’s what you should know about potential cost savings.
In February 2011, the IRS reversed its previous ruling, which denied breastfeeding-related supplies from being covered as a health expense. The decision to include it as an allowable health expense is a major milestone for nursing moms, as breastpumps and supplies that assist breastfeeding are now considered “medical care” and tax deductible. This means that moms and families can now use their pre-tax dollars from their flexible spending accounts (FSA) and health savings accounts (HSA) to cover the cost of lactation supplies.
For clarification, here is a brief explanation of these accounts:
Health flexible spending account (FSA): a type of tax-advantaged financial account that can be set up through an employer in the United States. An FSA allows an employee to set aside a portion of her pre-tax earnings to pay for qualified medical expenses as established in the plan.
Health savings account (HSA): a tax-advantaged medical savings account available to taxpayers who are enrolled in a high deductible health plan (HDHP).
Here is what you should know:
•The IRS guidance is broadly interpreted and covers any supplies that “assist lactation.”
•FSA/HSA benefits providers may differ slightly in what they may cover. For example, some may define a breastpump as an allowable expense, but not other supplies.
•It is important for you to contact your employer’s benefits provider to determine what is covered under your specific FSA/HSA and the steps needed for reimbursement.
•If you do not have a FSA/HSA account, you may be able to deduct breastfeeding costs if your total unreimbursed medical expenses exceed 7.5 percent of your adjusted gross income, and if you itemize your tax returns.
FSA/HSA plans are one of two ways you can explore reimbursement for your breastpump. Private insurance may also offer coverage.
Could my breastpump or lactation services be covered by my insurance?
Many health insurance plans are aware of the numerous health benefits of breastfeeding and therefore may cover certain breastfeeding-related expenses, including for example, lactation consultant services, breastpump rental/purchase and other costs. Coverage for breastfeeding-related expenses will vary widely among different health insurance plans.
Medela worked with respected insurance experts to provide you with several reimbursement-related resources that may help you in getting coverage for your breastfeeding-related expenses. The materials here can be used by expectant and new parents to help in submitting claims as well as appealing denied claims for services. There are also additional templates that can help you get assistance from your employer, healthcare provider and lactation consultant.
Take time to review each information category. Reading the information in the order in which it is outlined will help. Each information page is available in PDF format for you to download at your convenience.
•Coverage Questions You Should Ask
•Tips for Communicating with Your Insurance Company
•Understanding the Benefits of Breastmilk
•Filing an Insurance Claim
•Lactation Consultant Coverage
•Appealing an Insurance Claim
•Quick Reference Guide - Coding
Please note: in addition to private insurance assistance, some other state and federal programs may offer breastfeeding support and reimbursement under certain circumstances. For more information call your local Women’s Infants and Children (WIC) office or your local state Medicaid office.
For more information you may also visit http://www.aap.org/breastfeeding/files/pdf/CODING.pdf
Showing posts with label VIA. Show all posts
Showing posts with label VIA. Show all posts
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Wednesday, July 20, 2011
Breast Feeding Experience - Survey
Thursday, February 17, 2011
Breast Feeding Supplies Win Tax Breaks From IRS
Ending a long-running dispute with pediatricians and breast-feeding advocates, the Internal Revenue Service announced Thursday that it would grant nursing mothers a tax break on pumps and other breastfeeding supplies.
The ruling, which will affect expenses incurred starting in 2010, will allow mothers to use pretax money from their flexible spending accounts to cover the cost of breast pumps and other supplies. Those without flexible spending accounts may deduct breast-feeding costs if their total unreimbursed medical expenses exceed 7.5 percent of their adjusted gross income and they itemize.
Breast feeding advocates said the new policy would help millions of working mothers continue breast-feeding after returning to the workplace, and improve the health of infants who receive antibodies from the breast milk.
“Now, more women will be able to pass on the health benefits of breast-feeding to their babies, which include protections against asthma and other respiratory illnesses, bacterial and viral infections, and obesity, among other ailments,” said Dr. O. Marion Burton, president of the American Academy of Pediatrics.
A study by Harvard Medical School last year showed that if 90 percent of mothers followed the standard medical advice of feeding infants only breast milk for their first six months, the United States could save $13 billion a year in health care costs and prevent the premature deaths of 900 infants each year from respiratory illness and other infections.
But as recently as last year, the I.R.S. rebuffed those arguments. The I.R.S. code considers nutrition a necessity rather than a medical condition, and the agency’s analysts said they viewed breast milk as nothing more than a healthy food - meaning that breast pumps, bottles and pads were no more deserving of a tax break than a vegetable steamer.
In a letter reversing that ruling, Douglas H. Shulman, the I.R.S. commissioner, made no mention of the positive health effects of breast milk, but said that pumps and other equipment should be considered a medical expense because “they are for the purpose of affecting a structure or function of the body of the lactating woman.”
I.R.S. officials declined to elaborate. But studies show that breast-feeding is also beneficial for the nursing mother, helping her avoid Type 2 diabetes, ovarian cancer, breast cancer and postpartum depression.
Whatever the rationale for the policy change, breast-feeding advocates say it will make it easier for millions of women to heed the prevailing medical advice.
To continue breast-feeding once they return to the workplace, many mothers need to use pumps to extract milk, which can be chilled and fed by bottle to the child later. The pump and the accessories needed to store milk cost about $500 to $1,000 for most mothers over the course of a year, according to the United States Breastfeeding Committee.
A survey by the Centers for Disease Control and Prevention found that about 75 percent of the 4.3 million mothers who gave birth in 2007 started breast-feeding. By the time the baby was 6 months old, the portion dropped to 43 percent, and on the child’s first birthday, to 22 percent.
The I.R.S.’ s initial refusal to classify breast-feeding as a medical expense has frustrated women’s health advocates and pediatricians for years, especially since the federal government offers tax breaks on items like acne cream and denture adhesive. After a news report last fall about the I.R.S. turning down a nursing mother’s effort to use pretax funds for a breast pump, Representative Carolyn Maloney, a New York Democrat, and 55 other members of Congress wrote to Mr. Shulman asking him to revise the policy.
Robin W. Stanton, chairwoman of the United States Breastfeeding Committee, called the announcement a major victory for mothers, infants and America.
“It is critical to our nation’s health that the majority of American women are supported in their decision to breast-feed: the health, psychosocial, economic, and environmental benefits are undeniable,” she said.
February 10, 2011, New York Times
Breast-Feeding Supplies Win Tax Breaks From I.R.S.
By DAVID KOCIENIEWSKI
 |
| Ameda Ultra |
The ruling, which will affect expenses incurred starting in 2010, will allow mothers to use pretax money from their flexible spending accounts to cover the cost of breast pumps and other supplies. Those without flexible spending accounts may deduct breast-feeding costs if their total unreimbursed medical expenses exceed 7.5 percent of their adjusted gross income and they itemize.
Breast feeding advocates said the new policy would help millions of working mothers continue breast-feeding after returning to the workplace, and improve the health of infants who receive antibodies from the breast milk.
“Now, more women will be able to pass on the health benefits of breast-feeding to their babies, which include protections against asthma and other respiratory illnesses, bacterial and viral infections, and obesity, among other ailments,” said Dr. O. Marion Burton, president of the American Academy of Pediatrics.
 |
| Philips AVENT Isis Duo |
A study by Harvard Medical School last year showed that if 90 percent of mothers followed the standard medical advice of feeding infants only breast milk for their first six months, the United States could save $13 billion a year in health care costs and prevent the premature deaths of 900 infants each year from respiratory illness and other infections.
But as recently as last year, the I.R.S. rebuffed those arguments. The I.R.S. code considers nutrition a necessity rather than a medical condition, and the agency’s analysts said they viewed breast milk as nothing more than a healthy food - meaning that breast pumps, bottles and pads were no more deserving of a tax break than a vegetable steamer.
In a letter reversing that ruling, Douglas H. Shulman, the I.R.S. commissioner, made no mention of the positive health effects of breast milk, but said that pumps and other equipment should be considered a medical expense because “they are for the purpose of affecting a structure or function of the body of the lactating woman.”
 |
| Medela Freestyle |
I.R.S. officials declined to elaborate. But studies show that breast-feeding is also beneficial for the nursing mother, helping her avoid Type 2 diabetes, ovarian cancer, breast cancer and postpartum depression.
Whatever the rationale for the policy change, breast-feeding advocates say it will make it easier for millions of women to heed the prevailing medical advice.
To continue breast-feeding once they return to the workplace, many mothers need to use pumps to extract milk, which can be chilled and fed by bottle to the child later. The pump and the accessories needed to store milk cost about $500 to $1,000 for most mothers over the course of a year, according to the United States Breastfeeding Committee.
A survey by the Centers for Disease Control and Prevention found that about 75 percent of the 4.3 million mothers who gave birth in 2007 started breast-feeding. By the time the baby was 6 months old, the portion dropped to 43 percent, and on the child’s first birthday, to 22 percent.
The I.R.S.’ s initial refusal to classify breast-feeding as a medical expense has frustrated women’s health advocates and pediatricians for years, especially since the federal government offers tax breaks on items like acne cream and denture adhesive. After a news report last fall about the I.R.S. turning down a nursing mother’s effort to use pretax funds for a breast pump, Representative Carolyn Maloney, a New York Democrat, and 55 other members of Congress wrote to Mr. Shulman asking him to revise the policy.
Robin W. Stanton, chairwoman of the United States Breastfeeding Committee, called the announcement a major victory for mothers, infants and America.
“It is critical to our nation’s health that the majority of American women are supported in their decision to breast-feed: the health, psychosocial, economic, and environmental benefits are undeniable,” she said.
February 10, 2011, New York Times
Breast-Feeding Supplies Win Tax Breaks From I.R.S.
By DAVID KOCIENIEWSKI
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