Molly & Patrick

Like all couples going through fertility treatment, Molly and Patrick were excited and anxious as they awaited the results of the beta pregnancy test from their first cycle of IVF. When it came back negative, they were crushed. They were also immediately thrown into a quandary about what to do next.

Molly and Patrick had an insurance plan that did not cover fertility treatment. That meant that not only did they have to decide whether to try IVF again or move on to adoption, but they also had to figure out how to pay for the plan of action they chose. “Affording the first round of treatment was a little tough, but when we found out we would have to do more, we knew things were gonna get a lot tighter,” says Patrick.

Fortunately for them, Patrick is an accountant. Between his smarts with budgeting, an innovative financial program at Shady Grove Fertility, and his knowledge of the tax system, they were able to navigate the finances of treatment smoothly. Not only did they find a way to stay within their budget, they also got a hefty refund from the IRS that reduced the cost of treatment significantly.

Finding financial programs that work

Molly and Patrick live outside of Pittsburgh. Their first round of IVF was done at a fertility center in their area. Once they decided that they wanted to try IVF again, they began to research other fertility centers to see if they might be able to find more affordable treatment. Patrick knew that finding a financial program that fit their budget and needs was the first step to making continued treatment work for them.

A friend’s daughter who had a successful IVF treatment at Shady Grove Fertility suggested they check them out. Molly and Patrick were particularly drawn to the Shared Risk 100% Refund Program at Shady Grove Fertility. This program allows couples to attempt up to six IVF cycles and the related frozen embryo cycles for one flat fee. If the couple does not deliver a baby, 100% of their fee would be refunded.

“Even though the fee for the program is as much as two IVF cycles, we liked the certainty of the money-back guarantee,” says Patrick. “Since we had to pay out-of-pocket, knowing the exact amount we would spend eased a lot of stress for us. And, if it didn’t work out, we would still have that money available for adoption costs.”

Using tax deductions to reduce costs

The next step Patrick took was to plan for use of the IRS’s rule allowing itemized deductions for medical expenses. Patrick knew that since they would be paying all of the costs for treatment themselves, they would be eligible for a substantial tax write-off at the end of the year. This would mean that, most likely, they would be refunded a portion of the money they were about to spend on treatment.

The key to making this work was to track and log expenses thoroughly. “I knew we would need to keep detailed records of all of the expenses related to our treatment with Shady Grove,” says Patrick.

Traveling for treatment

Molly and Patrick made the four-hour drive from the Pittsburgh area to see Robert J. Stillman, MD in Shady Grove Fertility’s Rockville office several times. Patrick remembers, “We tracked all of our mileage and tolls each time we made a trip to Maryland because we knew we could include those costs in our tax deductions.”

Molly adds, “Luckily, my parents live near Rockville, so we were able to stay with them during our treatment. But, if we hadn’t had that option, we also could have added our hotel and food expenses to our deductions.”

By the end of treatment, Molly and Patrick had a clearly labeled file of invoices and receipts for everything from diagnostic testing to the Shared Risk fee to medication costs. “We kept every bill and receipt,” says Patrick, “At the end of the year, we had over a dozen deductions to add to our tax return.”

Keeping records

Patrick knew that keeping detailed records to back up their deductions would be imperative since there would be no form on which to explain the sudden increase in their medical expenses to the IRS. Patrick remembers, “I knew this could be a red flag for the IRS, so I wanted to be prepared in case they asked for our records supporting the amount we wrote off.”

Patrick was right. About two years after they filed that return, they were contacted by the IRS to provide more detail. “The process was easy,” Patrick says. “I made copies of all the receipts and printed out my spreadsheet. I mailed everything in and about two weeks later, I received a letter from the IRS letting me know that our return had been verified and approved, and the case was closed.”

Getting more than a refund

Using all the financial tools available for fertility treatment requires some research, some know-how, and some paperwork. However, these tools enable couples like Molly and Patrick to get the treatment they need to realize their dreams of parenthood. Patrick reflects, “I had to be disciplined to keep everything straight, but it was well worth it in the end.” That year, Molly and Patrick were refunded several thousand dollars from the IRS – but even better – they gave birth to a healthy baby girl.