MODDERN Cures Act of 2013

This bill, HR3091, amends Section 223(d)(2) of the Internal Revenue Code of 1986 to explicitly include fertility treatments as qualified medical expenses for Health Savings Accounts (HSAs). This change makes fertility services and related medications tax-advantaged for millions of Americans with HSAs, effectively reducing the out-of-pocket cost of these treatments. The expansion covers preservation of reproductive materials, artificial insemination, assisted reproductive technology (like IVF), prescribed fertility medications, and gamete donation. This is a direct financial incentive for consumers to utilize fertility services. The money trail flows directly from increased consumer spending, facilitated by tax advantages, into the fertility services market. Healthcare providers offering fertility treatments, such as IVF clinics and reproductive endocrinology practices, will see increased patient volume. Pharmaceutical companies that produce fertility drugs will experience higher demand. Companies like CooperCompanies ($COO), through its CooperSurgical division, which provides fertility and genomics solutions, and Haemonetics ($HAE), which offers products used in blood and plasma collection, including for gamete donation, stand to gain. Pharmacy chains like CVS Health ($CVS) and Walgreens Boots Alliance will see increased prescription fulfillment for fertility medications. Health insurance providers such as UnitedHealth Group ($UNH), Elevance Health, Humana ($HUM), and Molina Healthcare ($MOH) will see increased claims for fertility treatments, potentially leading to higher premiums or increased utilization management, but also a broader market for their plans that cover these services. Diagnostic companies like LabCorp ($LH) and Quest Diagnostics ($DGX) will benefit from increased testing associated with fertility treatments. Historically, legislative actions that expand tax-advantaged healthcare spending categories lead to increased utilization of those services. For example, the expansion of HSA-eligible expenses for over-the-counter medications in the CARES Act of March 2020 led to an immediate increase in sales for pharmaceutical and retail health companies. While specific fertility-related legislative precedents are limited, the general principle holds: reducing the effective cost of a medical service increases its demand. The bill's sponsor, Rep. Underwood, is a senior member of the House Committee on Appropriations, indicating a moderate level of legislative momentum for healthcare-related initiatives. Specific winners include CooperCompanies ($COO) due to its strong position in fertility products and services, and Haemonetics ($HAE) for its role in gamete donation processes. Pharmaceutical companies like Perrigo Company plc ($PRGO), which manufactures various healthcare products, including some over-the-counter medications that could be related to reproductive health, will benefit from the broader eligibility. Major pharmacy chains CVS Health ($CVS) and Walgreens Boots Alliance will see increased prescription volume. Health insurers like UnitedHealth Group ($UNH) will see increased claims volume, which they manage through their networks and benefit designs. There are no clear losers, as the bill expands benefits without imposing new costs or restrictions on existing market participants. This bill has been introduced in the House and referred to the Committee on Ways and Means. The next step is committee consideration and potential markup. If it passes committee, it moves to a full House vote. If passed by the House, it would then go to the Senate for similar consideration. The effective date for the amendments is upon enactment, meaning the impact on consumer spending and corporate revenues would begin immediately after the bill becomes law.