Do you start a family? The company’s profits favor IVF over adoption

Fertility benefits are becoming almost fashionable in chip companies, with more companies offering help with IVF costs and egg freezing. But in many cases, companies that offer fertility benefits do not give any financial aid to employees who want to adopt, and when they do adopt, the benefits are usually much less generous.

Estimates of how many companies offer fertility or adoption benefits are vague. Most employers don’t give a damn. But the gap is clear.

The Society for Human Resource Management estimates that as of 2018, 27% of employers offered some form of infertility coverage and 11% offered assistance for adoption. FertilityIQ, a website that offers courses and other information on family building, regularly reviews the benefit disclosures of thousands of employers. In a report released Saturday, it is estimated that only one in five companies offering fertility coverage also offers adoption assistance.

According to FertilityIQ, employers who offer fertility assistance offer benefits averaging about $ 36,000. Jake Anderson-Bialis, co-founder of FertilityIQ, said the benefits of adoption rarely exceed $ 10,000 and are usually much less.

Disparity harms people who cannot or prefer not to undergo fertility treatments, including women discouraged by too many miscarriages and those who are attracted to adopting a homeless child. For gay men, fertility benefits are essentially useless without a substitute, and making one can easily cost $ 100,000 or more.

“It’s not like the company’s job to support children who need to be adopted,” said Adam Pertman, director general of the National Center for Adoption and Permanence, a research and advocacy group. “But if they equalized the playing field in supporting employees no matter how they form their family, it would have a huge social consequence.”

For Mrs. Mahalchick, the two years she spent on fertility treatments were unfortunate. IVF hormones made her sick. She suffered several abortions. She and her husband spent about $ 10,000 on their share of treatments. In January 2020, she quit smoking.

Now they are pursuing adoption and wish they had started earlier. “It’s already stressful enough when he becomes a father,” said Ms. Mahalchick, who lives in the Northeast. “But adoption is treated like a luxury.”

Adoption and fertility treatments are beyond the reach of many families. Adopting a child can easily cost $ 50,000 or more. (The exception is foster care adoption, where financial costs are usually minimal.) A single round of IVF can cost $ 20,000 or more and many women need several rounds.

Lauren Serianni of Tampa, Florida, said she was discouraged that her husband’s employer was willing to pay the three-cycle IVF bill, a benefit worth $ 60,000 but would only pay $ 3,000 for an adoption. . She and her husband spent more than ten times this to adopt their daughter, who is now one year old.

“Any way to grow a family is beautiful,” Ms. Serianni said. “It shouldn’t be, ‘If it’s not genetically yours, we won’t pay for it.'”

In 2018, about 80,000 children were born in the U.S. with IVF and other fertility treatments, according to the Centers for Disease Control and Prevention. That same year, the Americans adopted about 85,000 children with whom they were unrelated, according to the National Council for Adoption, a defense group.

Companies that have introduced generous fertility benefits often say they respond to employee demand. IVF and egg freezing have become part of the white-necked zeitgeist in a way that adoption has not.

Employers may also have logistical and financial reasons for offering fertility assistance that does not apply to adoption.

Fertility coverage, when offered, is usually provided in a health insurance plan, which means coverage may be subject to regulations. At least 17 states have passed laws that require some insurers to cover, or at least cover, some infertility treatments.

Some companies have decided that it is cheaper to pay for employee fertility treatments than to let employees pursue them on their own, as employers may end up covering many of the related costs anyway. If an employer pays the IVF bill, you can specify, for example, that doctors only implant one embryo at a time.

This reduces the chances of twins or triplets, where pregnancy and childbirth are often complicated and costly. A 2013 study published in the American Journal of Obstetrics & Gynecology found that delivering and caring for a single baby costs about $ 20,000 for insurers and patients. The twins cost $ 100,000; three twins, $ 400,000.

Adoption-related taxes can complicate things. For example, both an employer and an employee can get a tax credit if an employee reserves wages for health care or childcare expenses, but will not get the same if an employee reserves wages for adoption expenses, said Mary Hevener, a lawyer compensation specialist for Morgan, Lewis & Bockius LLP.

A few years ago, Morgan Lewis offered free assistance to corporate clients who might be interested in expanding their benefit plans to allow employees to leave pre-tax wages to adopt.

“We promoted all the numbers:‘ Look at all the children in foster care, look at all the employees you could help, ’” Ms Hevener said. “And what we heard was,‘ Hey, I guess. ”

Anita Jennison, herself adopted, had long wanted to adopt. In 2019, he joined the life brand Goop in California and discovered that the company would reimburse employees up to $ 60,000 in adoption fees through Carrot Fertility, a profit provider.

Mrs. Jennison estimates she spent about $ 80,000 on adopting her daughter, who is now a year old. He would have much preferred to save for his daughter’s education. He has since left Goop, but is grateful for his financial support. He knows at least half a dozen families who are desperate to adopt, but can’t afford it.

Before joining Goop, Mrs. Jennison had thought her path to motherhood was closed. “I never expected that to happen,” he said. “This is a gift from God, because no one offers it.”

Write to Christina Rexrode to [email protected]