Stem Cell Storage is HSA eligible with a Letter of Medical Necessity
Stem cell storage is eligible with a Letter of Medical Necessity (LMN) with flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), and only eligible for the period of time necessary to treat an existing or imminent disease. To use HSA funds, your physician must provide a signed Letter of Medical Necessity (LMN) stating Stem Cell Storage treats a specific diagnosed condition.
Your LMN must be signed by a licensed provider, name the diagnosed condition, and be retained with your receipts for at least 3 years after the tax year.
How to claim it
- Get a signed LMN from your licensed physician tied to a specific diagnosis.
- Pay with HSA funds or reimburse yourself — keep the LMN and itemized receipt together for your records.
Frequently asked questions
Is Stem Cell Storage FSA or HRA eligible too?
Generally yes, but like an HSA it requires a Letter of Medical Necessity. FSAs and HRAs use the same IRS Publication 502 rules, so you'll need an LMN tying Stem Cell Storage to a diagnosed condition.
Can I use my HSA debit card to pay for Stem Cell Storage?
Only with a Letter of Medical Necessity on file from your physician. Without an LMN this is a non-qualified distribution subject to income tax and a 20% penalty.
Do I need to keep a receipt for Stem Cell Storage?
Yes — for every HSA withdrawal the IRS requires documentation proving the expense was qualified. Keep itemized receipts for at least 3 years after the tax year.
Can I reimburse myself years later for Stem Cell Storage?
Yes — the IRS imposes no time limit on HSA reimbursements. As long as the expense was incurred after your HSA was established and you have documentation, you can reimburse yourself years or even decades later.