Should your company offer fertility benefits?
Most businesses today understand all too well that they must craft a robust and varied benefits package to draw good job candidates and retain valued employees. But beyond basics such as health insurance and a retirement plan, there are so many options. Well, you can add one more to the list: fertility benefits.
Recent surveys
Indeed, interest in fringe benefits related to helping employees conceive children and build their families appears to be growing for both companies and workers.
Earlier this year, women-focused health care consultancy Maven released Maven’s State of Women’s and Family Health Benefits 2024. The report includes the results of a survey of more than 1,200 human resources leaders and over 3,000 full-time employees. It found that 75% of employers believe “reproductive and family benefits are important or very important for retaining employees.” Also, about half (48%) of employers stated that they intend to “increase their family health benefit offerings in the next two to three years.”
A different survey highlighted the apparent strong interest of workers in fertility benefits. Last year, Carrot Fertility, a global fertility benefits provider, published a report entitled Fertility at Work. It features a survey of 5,000 working people from across the globe. Only about a third (32%) of those respondents said they could afford fertility treatments. Meanwhile, 65% said they’d “change jobs to work for a company that offers fertility benefits,” and 72% reported they’d “stay at their company longer if they had access to fertility benefits.”
Some examples
So, evidence of interest in fertility benefits is pretty strong. But what do these benefits actually look like? Here are some examples:
Fertility assessments. These include a wide range of tests, as well as consultations with reproductive medical specialists, to help individuals determine their fertility health. Many businesses partner with health care providers or fertility clinics to give employees affordable access to assessments.
In vitro fertilization (IVF). This is a medical procedure whereby an egg is fertilized outside the body and then implanted in the birth mother. Companies may offer full or partial benefits coverage for IVF treatments, which tend to be quite pricey.
Fertility medications. There are a variety of medications for stimulating and supporting the reproductive process. Businesses can expand their prescription drug coverage to include clomiphene, gonadotropins and other hormone treatments.
Oocyte cryopreservation. This is the process of retrieving and freezing eggs for later fertilization. Companies may offer coverage for initial retrieval, the freezing itself and storage thereafter.
Practical matters
There are various mechanisms you can use to offer these benefits and others. Assuming your company sponsors a health insurance plan, it might already include fertility benefits that you or your participants aren’t fully aware of. If your plan doesn’t include the fertility benefits you want to offer, you may be able to expand its coverage to do so. This will, of course, likely raise your costs.
Many businesses today sponsor Flexible Spending Accounts for employees or offer Health Savings Accounts along with high-deductible health plans. In such cases, participants can generally use those funds for fertility-related expenses.
Some companies set up reimbursement programs. Under these, employees pay for fertility-related assessments, treatments and medications upfront, and their employers reimburse all or part of the costs. As mentioned, businesses may also be able to partner with certain health care providers to give employees access to discounted or fully covered services.
A question worth asking
There’s no easy answer to whether your company should offer fertility benefits. But it’s a question worth asking. We can help you dig deeper into the details, including estimating all the potential costs involved and identifying the likely tax impact.
© 2024