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As infertility treatments become more widely sought, many employees and employers are looking for flexible and cost-effective ways to provide support. Two options that often come up are: adding an infertility rider to your group health insurance plan, or offering access to a Lifestyle Spending Account (LSA) that covers infertility-related expenses.
Let’s break down the pros and cons of each approach—and why an LSA might offer more flexibility and value.
What Is an Infertility Rider?
An infertility rider is an add-on to a traditional health insurance plan that expands coverage for infertility services like diagnostic testing, medications, or procedures such as IUI and IVF. However, these riders come at a cost:
- Higher premiums: Adding a rider increases the monthly cost of the group plan.
- Strict limitations: These riders often come with age restrictions, cycle limits, or require a formal diagnosis of infertility before coverage kicks in.
- Preauthorization hurdles: Members may need to navigate extra red tape to get approval for services.
For employers, it can be an expensive addition with limited flexibility.
What Is a Lifestyle Spending Account (LSA)?
An LSA is an employer-funded account that employees can use for a wide variety of expenses—including fertility-related services—that may not be covered by insurance. Unlike Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs), LSAs are taxable to the employee but offer unparalleled flexibility in how the funds can be used.
LSA Benefits for Infertility Support
- Customizable coverage: Employers define what’s eligible—including fertility consultations, acupuncture, counseling, egg storage, surrogacy support, and more.
- No diagnosis required: Employees don’t have to meet specific clinical criteria to access funds.
- More inclusive: LSAs can support LGBTQ+ families and single parents by design.
- Cost-controlled: Employers set the budget, offering predictable costs without impacting insurance premiums.
Cost Comparison Example
Let’s say an infertility rider adds $20–$40/month per employee to your group plan. That’s $240–$480 annually per employee, regardless of whether they use it.
In contrast, an employer could offer a $1,000-$10,000 annual LSA for specific life-stage expenses—including fertility—and only fund it for employees who want it.
Bottom Line: Flexibility Wins
While infertility riders may still make sense for some companies or employees, LSAs are increasingly becoming the smarter choice—especially for businesses looking to provide meaningful, inclusive benefits without ballooning insurance costs.
If you’re looking to support employees navigating fertility journeys in a more thoughtful and budget-friendly way, an LSA could be your secret weapon.
Want to Learn More?
We’d be happy to help you explore whether a Lifestyle Spending Account is right for your team. If you have any questions or would like more information on how to enhance your benefits package, feel free to reach out to SSA Insurance Services at 760-203-4293 or service@ssainsuranceservices.com.
We’d be happy to help you explore whether a Lifestyle Spending Account is right for your team. If you have any questions or would like more information on how to enhance your benefits package, feel free to reach out to SSA Insurance Services at 760-203-4293 or service@ssainsuranceservices.com.
Since 2013 SSA Insurance Services has been helping organizations of all sizes to promote and protect the health and wellness of their most important asset: their employees. Stephanie San Antonio and her team do this by working with employers to design, implement, and maintain a company culture that is in line with their mission and values, and building a comprehensive benefit package that attracts and retains their top talent. Call SSA at (760) 203-4299 for a complimentary benefits package review, to make sure your group health plan is in compliance, and for help with establishing a wellness program for your employees to keep them healthy, happy and engaged.
