Paulsen, Kind Introduce Legislation to Improve Life-Saving Treatment and Access to Stem Cells in Cord Blood

Statement

Congressman Erik Paulsen (MN-03) and Congressman Ron Kind (WI-03) haveintroduced the Family Cord Blood Banking Act to help families access cord and placental blood and tissue banking services. This initiative would make the collection and storage costs a qualified medical expense under health savings accounts (HSAs) and flexible spending accounts (FSAs).

"We cannot overlook the significant scientific and medical use this blood and tissue has, which is why we need to make it easier for families to donate it to banking services," said Congressman Paulsen. "By allowing families of newborns to use their HSA or FSA dollars to donate umbilical cord blood and cells to private blood banks, we can increase accessibility to these services and better ensure their fullest medical potential is realized to improve and save lives."

"When it comes to fighting cancer, blood disorders, and immune diseases, researchers say cord blood could be an effective tool for treatment," said Congressman Kind. "This legislation supports families that choose this potentially life-saving investment by providing tax incentives to ease the burden of their medical expenses."

The Family Cord Blood Banking Act is similar to legislation introduced by Congressman Paulsen and Congressman Kind in the 113th Congress, where it had 42 co-sponsors.

After a baby is born, parents have the option to donate the umbilical cord blood to a private bank, public bank, or to dispose of it. Even though it ismore expensive, parents often choose private banking because a successful stem cell transplant often requires a genetic match between donor and patient. Private banking services ensures access to a guaranteed match for that child and potentially even for blood relatives. Although public banking services are available, they can't guarantee a donor match. Stem cells from a family member are much more likely to be successfully transplanted than those from an unrelated donor. In fact, the New England Journal of Medicine recently reported that the one-year survival rate for patients treated with cord blood stem cells from a relative was 63 percent, compared with 29 percent for those treated with stem cells from unrelated donors.

Private cord and placental blood and tissue banking is not typically covered by health insurance plans. Designating banking services as a qualified medical expense for those families who use health savings accounts or flexible spending accounts would increase accessibility forfamilies by giving themthe option of using private banking services.

Congressman Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, chairs the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen's work in Congress visit paulsen.house.gov.

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