Banking baby’s cord blood: What you need to know | Progyny

Updated by the Progyny Clinical Team — June 2025

Many parents are interested in cord blood banking for different reasons. Your newborn’s cord blood may contain life-saving stem cells. These cells might be able to be used to treat many different conditions. Conditions include genetic, immune, and neurologic disorders, or even certain cancers. This blood can also be donated and used for research, possibly helping develop new treatments and saving lives in the future.

There are two important things to note. According to a leading authority on cord blood banking, the American College of Obstetrics and Gynecology (ACOG), states:

• “Umbilical cord blood collected from a neonate (newborn) cannot be used to treat a genetic disease or malignancy in that same individual.” That’s because stored cord blood has the same genetic variant or premalignant cells that led to the condition.
• This blood is collected after the delivery of your child. However, there are a variety of circumstances that may come up during labor and delivery that might prevent proper collection.

In any case, the decision of whether or not to bank cord blood does not impact the care you and your child receive. If you do decide that you’d like to bank your newborn’s cord blood, be sure to let your healthcare provider know. They can help you make arrangements.

Now, there are two options for cord blood banking. While there is no “right” choice, consider your family’s medical history and personal preferences to help guide you to the best decision.

Private banks

These facilities are for-profit companies that charge for private storage of cord blood for personal use.

According to ACOG, “The routine collection and storage of umbilical cord blood with a private cord blood bank is not supported by the available evidence.” The data on the use of cord blood is still limited. Thus, most health insurance companies do not cover the cost of collecting and storing it privately.

• Processing and initial storage of cord blood can range from $1,200 to $2,895 depending on what has been requested to be harvested.
• Once the blood has been banked, families must pay an annual storage fee. The annual cost for storing it can range from $150 to $400, depending on the company and type of storage plan chosen.

In rare circumstances, cord blood storage can be paid for through a health savings account (HSA) or a flexible spending account (FSA). You must get a Letter of Medical Necessity from a medical doctor to get reimbursed through your HSA or FSA. The blood must be used to treat a current illness or one that is likely to develop in your child or a family member. Storing this blood just in case it’s needed in the future usually doesn’t qualify.

Public banks

These facilities are non-profit, and donating cord blood to a public bank is free. Donations to public banks aren’t saved for your family’s future use. Still, many parents choose this option because it can help others by making the blood available for treating conditions or for research.

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Disclaimer: The information provided by Progyny is for educational purposes only and is not medical advice. Always consult a qualified healthcare provider for medical guidance.