Tubal ligation reversal can be expensive. Most couples must pay for the procedure without the help of health insurance. The upfront fees for the surgery can be a barrier for many couples seeking to have a baby.

A tubal ligation reversal payment plan can help couples afford the surgery today, and make payments over time. The clinic performing the procedure may offer a payment plan, or you can find other financing options. There are four approaches to make the payments more affordable:

  1. Lower interest payment plans
  2. Leveraging surgical success rates 
  3. Medical expense deductions deductions on payments

Finding Low Interest Payment Plans

Tubal ligation reversal surgery costs can range from $5,000 to $15,000 depending upon the type of surgical procedure required. Financing and grants work best, but are often hard to find.

Most insurance plans will cover the initial tubal ligation procedure, but not the surgery to reverse the sterilization. The first procedure lowers downstream benefits costs, while the reversal increases them. Find more on that topic later.

Couples are then faced with a choice: dip into savings to pay for the procedure, or find a way to make payments over time. For couples with the savings the choice is fairly clear; the interest charges are often far higher than the investment earnings. For couples without savings a loan or payment plan may be the only option.

Payment Plan Options

Tubal ligation reversal financing has become very difficult. Many lenders have exited the business because of high default rates. Medical financing is more readily available at lower interest costs for cosmetic and dental procedures because the default rates have always been better, and are likely to remain better. Take a moment to understand why, and find the ideal tubal ligation reversal payment plan approach.

The objective of tubal ligation reversal surgery is for mom to be able to conceive and have a baby. In addition to making payments for the surgery, many couples then face extra medical expenses for prenatal care, hospital delivery, newborn care, lost maternity leave income, and the expense of feeding and caring for a baby.

Lowest Interest Payments

These downstream expenses contribute to the higher default rates. Higher default rates mean fewer options, and higher interest rates. Higher interest rates mean the biggest payments. Your clinic may offer payment plans through a finance company, but these typically come with the highest interest rate.

Credit cards can be used for payment, but often have high interest rates and may require a limit increase. Click here for more information about borrowing money for medical procedures. Home equity loans usually have the lowest tax-favored interest rates, but require equity in your home and a lengthy application process. Whatever your payment plan vehicle, make sure you investigate the next three steps in lowering your total payments.

Leveraging Tubal Ligation Reversal Success

Remember that the objective of tubal ligation reversal surgery is for mom to conceive, and deliver a baby. While traditional insurance does not cover the procedure, two supplemental maternity insurance plans will cover the objective: the hoped for normal childbirth. One stipulation is that the policies must begin prior to conception, which is not a problem for women considering the surgery.

Payment Plan Example

Follow a simple payment plan example to see how you can use supplemental insurance to help pay for your surgery. Doctors recommend that women allow their body to heal from the surgery for several weeks, and wait two menstrual cycles before attempting to get pregnant.

For sake of our example, we can assume the policies are purchased in conjunction with the procedure. Mom is earning Mom conceives three months after the surgery, and delivers nine months later. That equates to twelve months of insurance payments prior to delivery.

  • Monthly payment – $150
  • Total payments – $1,800
  • Benefits paid for c-section delivery – $7,000

As you can see from the example there is enough of a gap between the premium payments, and the benefits returned to cover the entire expense of an entry level tubal ligation reversal. Plus, additional benefits may be paid in the event of pregnancy complications, premature birth, delivery complications, accidents and illnesses.

Tax Deductible Payments

There is a down side to using tubal ligation reversal payment plans. You may miss out on tax savings that help make the procedure more affordable. Most infertility treatments payments are tax deductible because they are not covered by insurance, and qualify as an un-reimbursed medical expense. But these deductions provide the biggest savings when bunched into a single tax year, and payment plans spread them out.

AGI Threshold

The amount you pay out-of-pocket for qualified medical expenses in any tax year can be deducted from taxes using schedule C. The IRS limits these deductions to those above 10% of the family’s Adjusted Gross Income. A family with a $100K AGI may realize tax savings only on those totaling more than $10,000 in any tax year. By spreading your payments over two or more tax years you risk losing the tax savings.

Flexible Spending First Dollar Savings

Flexible spending accounts fit very nicely with tubal ligation reversal payment plans. The primary benefit is first dollar tax savings. No matter what a couple’s earnings level, money contributed into the account reduces reported W2 income. Couples realize tax savings right away, without having to meet any spending thresholds.

Flexible spending accounts have annual contribution limits of $2,500. If both spouses have access at work, a total of $5,000 can be contributed. In theory, even the most expensive tubal ligation reversal surgery could be paid off over three years using your FSA.

Image credit: dgm / 123RF Stock Photo

Posted