In the ongoing war for talent, many companies are looking to broaden their benefits coverage and make them more family friendly.  One benefit that is garnering more attention and is on the rise is coverage for infertility treatments such as fertility drugs, in vitro fertilization (IVF), and fertility concierge services.  For employees facing difficulties conceiving, the financial cost of pursuing such options on their own can be out of reach.  The American Society for Reproductive Medicine calculates that the average cost of an IVF cycle runs approximately $12,400.

According to the International Foundation of Employee Benefit Plans (IFEBP), 24% of employers surveyed now offer some level of fertility services as part of their health care benefits. A separate study by Mercer in 2015, found that 60% of employers with more than 500 workers offer some type of fertility benefit, though it may often be limited to a consultation with a physician.  Approximately 1/3 of those employers cover fertility drug therapy, 24% cover IVF, and 23% cover artificial insemination.  40% of employers don’t cover any fertility services.  It is no surprise that many small employers do not offer fertility coverage.

Some of the reasons employers are implementing these programs are pretty straight forward including higher employee satisfaction and morale and the ability to attract and retain top talent.  What might not be as obvious is despite the high cost of fertility treatment, companies are finding that by offering this coverage, it is actually more cost effective.  Both Southwest Airlines and the State of Massachusetts which has the broadest state mandate, found that the benefit resulted in less than 1% of total premium dollars spent.

When it comes to designing a good infertility benefit, Dr. Mark Perloe, medical director at Georgia Reproductive Specialists states that an effective benefit should cover IVF, genetic screening and embryo evaluation.  It should also mandate that only a single embryo can be implanted for a “safer, healthier pregnancy outcome, which is obviously the best thing for the employer.”

When couples have to pay for fertility treatments on their own, often they can only afford limited IVF cycles and may skip recommended genetic screening that can identity abnormalities that could result in miscarriage.  As a result, they opt to transfer multiple embryos, increasing their chance of a pregnancy.  This results in greater risk of multiple births that carries higher chances of health complications to both the mother and babies and increased C-section rates, all of which bring a high price tag for employers. 

“When people are having to pay out of pocket and they are having to feel very pressured, they are making poor health decisions,” according to Barbara Collura, President and CEO of Resolve, the National Infertility Association.  “When they have the insurance and they have the benefits that allow them to do (IVF) more than once and the financial burden is removed, they actually make far better health decisions.”

The Centers for Disease Control and Prevention (CDC) reports that 17% of women aged 25-44, and 9.4% of men the same age, sought treatment for their infertility.  This may be a larger percentage of the employee population than employers realize, making infertility treatments coverage worth considering.

The following companies are leading the way in expanded fertility benefits:

·       Intel Corporation - Recently quadrupled its fertility coverage to $40,000 for medical services and $20,000 for drugs

·       Cisco Systems Inc. - $15,000 lifetime maximum for medical treatment and $10,000 for drugs

·       Activision Blizzard - In partnership with a fertility clinic with locations across the country, the company offers employees access to the latest technology and protocols, to optimize their chances of conceiving a healthy baby.  They also provide confidential access to Ovuline, a fertility and pregnancy-management program.

·       Ernst & Young - Financial assistance of up to $25,000 per family for adoption and advanced reproductive technology procedures (ART) for surrogacy and medically-necessary egg and sperm freezing

·       Domo - Access to Progyny, a concierge fertility benefit. Eligible employees can receive $30,000 in medical and $10,000 in pharmaceutical benefits, including: diagnostic tests, ultrasounds, IVF cycle management, retrieval, ICSI, embryo assessment and transfer and egg freezing consultation. Includes surrogacy and adoption consultation along with advice from fertility nurses, geneticists and embryologists. 

While expanded parental leave options and paid parental leave has gotten a lot of attention over the years, employees struggling with infertility issues are a group that is often not recognized.  Companies that offer expanded fertility benefits up front find that it can outweigh the high costs down the road of maternity care that results from multiple births including C-section, pre-term birth and NICU expenses.

Sources: Entrepreneur 4/24/2017; Huffington Post 2/21/2017; BenefitsPro 8/16/2016