Washington, D.C.– Congressmen Erik Paulsen (MN-03) and Ron Kind (WI-03) have introduced bipartisan legislation, the Family Cord Blood Banking Act, that gives greater access to families seeking to collect and store cord and placental blood and tissue. This type of blood and tissue is rich in stem cells that can often be used later to treat life-threatening blood disorders in those children or their family members. The bill makes the collection and storage of cord and placental blood and tissue a qualified expensive for Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs).

“After the birth of a child, parents are often immediately faced with a decision of whether to have blood and tissue collected and stored in case of future illness,” said Rep. Paulsen. “Since private blood and tissue banking is not typically covered by health insurance plans, giving families flexibility by allowing them to use HSAs and FSAs will help lower barriers to this important service.”

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

Stem cells derived from the umbilical cord and placental blood can replicate and differentiate into cells with orgran- or tissue-specific functions, and they are currently used in transplants to treat many life-threatening blood disorders. More than 30,000 patients worldwide have been treated with stem cells derived from the umbilical cord and placenta. These stem cells have successfully been used to treat diseases like leukemia and lymphoma, and there is some evidence they could be used against other illnesses like cerebral palsy, muscular dystrophy, and Parkinson’s disease.

Congressman Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, 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. 

###