ROI of Offering Fertility Benefits: How to Invest in Your Employees’ Future

Deciding to start or grow a family is one of life’s biggest milestones. But following this choice, 1 in 6 people worldwide will experience infertility, the struggle to conceive after 12 months of trying. 

Increasingly, employers support their employees with the fertility treatment costs required to achieve their parental dreams. Companies like Bank of America, Salesforce, and Adobe offer fertility benefits that deliver inclusive, comprehensive coverage, giving all employees access to the care they need, regardless of gender, sexual orientation, or relationship status.

But are fertility benefits the right fit for your company? (Spoiler alert: Yes, they are!) This guide digs into the return on investment you can expect when you support your employees with their family forming plans. 

Cost savings associated with fertility benefits

The cost of supporting anyone’s fertility journey can appear expensive on paper. Data from FertilityIQ reports that the average cost of a single IVF cycle is $23,474. However, the exact cost per patient will depend on the employee’s location and the specific services required as part of their treatment. For example, donor eggs or sperm, genetic testing, or intracytoplasmic sperm injection to fertilize the egg all incur additional fees. 

With these eyewatering costs in mind, you might be surprised to learn that offering fertility benefits can also help organizations save money. Here are three main areas where employers will receive a return on their investment: 

Greater employee retention 

For many professionals, the ability to start or grow a family is deeply intertwined with career decisions. Companies that offer comprehensive fertility benefits often see improved employee loyalty and retention as a direct result of supporting their workforce through major life transitions.

For companies striving to build a loyal workforce, these numbers highlight the direct impact of fertility coverage on employee commitment and long-term retention. Bearing in mind that SHRM’s chair-elect, Edie Goldberg, puts the cost of replacing an employee at up to 3-4x their annual salary, fertility benefits could significantly reduce the need to pay these costs by appealing better to its workforce. 

The connection between fertility benefits and retention becomes even clearer when you consider that employees who are planning families often make career decisions years in advance. Companies that offer comprehensive family-building support signal to their workforce that they’re invested in employees’ long-term life goals, not just their immediate productivity. This forward-thinking approach to benefits design creates deeper employee engagement and reduces the likelihood that valued team members will seek opportunities elsewhere when they’re ready to start or expand their families.

Increased demand 

47% of large employers now cover IVF, and demand for fertility benefits has surged, further driven by state-level mandates. 

Currently, 15 states require some form of insurance coverage for IVF, while 17 states mandate fertility preservation coverage for medically induced infertility. As more states follow suit, organizations that are proactive in adopting fertility benefits can avoid compliance penalties and the reputational damage associated with not demonstrating exceptional commitment to employee well-being. 

Reduced long-term healthcare costs

When employees pay out-of-pocket for fertility treatments, many opt for multiple embryo transfers to increase their chances of success. While this approach appears initially cost-effective, it also raises the likelihood of high-risk pregnancies and costly medical interventions. Multiple births carry higher risks of preterm labor, neonatal intensive care unit (NICU) stays, and long-term health issues for both parent and child. 

Infertility also has a significant psychological and emotional toll, leading to higher rates of depression, anxiety, and workplace absenteeism. The Mayo Clinic highlights that women experiencing infertility report anxiety and depression levels similar to those diagnosed with cancer, heart disease, and HIV.

Additionally, a global study from ScienceDirect confirms infertility negatively impacts quality of life (QoL) for both men and women. Employees facing these challenges may experience reduced productivity, disengagement, and increased absenteeism, all of which contribute to higher healthcare and disability-related costs for employers.

What to expect when offering family building benefits

Employers should be aware that less than 1% of employees access fertility benefits annually, on average, keeping overall costs manageable for companies of all sizes. 

There are several different benefits structures to choose from: 

1. Cycle-based fertility 

In this model, employers opt to pay for a specific number of fertility treatment cycles, such as one to three in vitro fertilization rounds. This approach favors IVF over other lower-cost paths to parenthood, making it less inclusive and more expensive than other models. 

2. Fertility HRAs (Health Reimbursement Arrangements)

Fertility HRAs allow employers to reimburse employees for eligible fertility-related medical expenses on a pre-tax basis, making them a financially efficient option for both the company and its people. They provide predictable budgeting with a set allowance and can cover a wide range of costs, from IVF and egg freezing to certain adoption-related expenses. 

However, HRAs are regulated under IRS rules, which means eligibility and expense categories are more limited compared to stipends. This can make them less inclusive, since common family-building paths often fall outside of §213(d) medical expense definitions. For example, expenses that are generally not HRA-eligible include:

• Surrogacy (e.g., carrier costs, medical, and legal fees)
• Non-temporary sperm/egg freezing (cryopreservation beyond one year)
• Egg or sperm donor expenses where neither the donor nor the carrier is the employee or their spouse
• Same-sex couples pursuing IUI, IVF, or similar procedures without a medical diagnosis of infertility

Because of these restrictions, HRAs can leave certain employees without meaningful support for their family-building journey, whereas stipend models often allow broader inclusivity and flexibility.

3. Flat-dollar family formation allowance

Unlike HRAs, which are limited to IRS-defined medical expenses, flat-dollar programs give employers the option to allocate a set monthly or annual allowance for fertility and family-building care. While these stipends are typically treated as a taxable benefit, they offer far greater flexibility and inclusivity. Employees can use the funds for expenses that HRAs often exclude, such as surrogacy, long-term egg or sperm freezing, donor costs, or family-building needs for same-sex couples without a medical infertility diagnosis. This makes flat-dollar allowances a more comprehensive and equitable option, extending support across a wider range of paths to parenthood.

From the employer’s perspective, stipends are easy to budget for and straightforward to administer, since companies only pay for what employees use. The trade-off is the lack of pre-tax treatment, but many organizations see the expanded coverage and inclusivity as worth the cost, especially when family-building benefits are a critical part of DEI and retention strategies.

Fertility benefits by the numbers

Data from the 2025 Benepass Benefits Benchmarking Guide shows that fertility benefits are no longer niche offerings but a strategic differentiator:

• 5% of Benepass LSA clients now offer a dedicated Family Planning Account, signaling rising employer investment in this space.
• Employers contribute a minimum of $15,000 annually per employee to family-building benefits.
• The median contribution is $15,000, while some organizations go as high as $20,000 per employee per year.

These benchmarks show that forward-thinking companies are funding fertility benefits at a level that meaningfully reduces the financial burden for employees. By doing so, they’re sending a clear signal: Family building is a supported, celebrated part of their workforce experience.

Download the full 2025 Benepass Benefits Benchmarking Guide to see how your benefits strategy compares to companies of a similar size and industry and where you can stand out.

Why fertility stipends are inclusive benefits

Offering comprehensive fertility coverage ensures all employees, regardless of their family structure, identity, or medical circumstances, have access to the support they need for their reproductive health and family formation goals.

Supporting LGBTQIA+ family building 

Family-building is a significant consideration for LGBTQ+ individuals, yet traditional fertility coverage often excludes those who do not meet the clinical definition of infertility. A study by the Williams Institute at UCLA found that 18% of LGBTQ+ people, roughly 2.57 million adults, are raising children, and nearly one in five married same-sex couples are parenting minors.

However, LGBTQ+ individuals face additional barriers, including costly reproductive procedures like IVF, surrogacy, and donor sperm or egg services. By keeping fertility benefits inclusive for same-gender couples and transgender parents, employers provide critical support to a growing workforce demographic.

Providing choice for single parents 

The desire to start a family isn’t limited to couples. Many single people choose to have children without the support of a co-parent. Single women and men often rely on donor conception and IVF to build their families. One woman summed up her fertility journey by recapping a conversation with a fertility clinic receptionist, telling her, “I’m not infertile, I’m just single.”

But assisted reproductive technologies may be out of reach to single people unless employers make comprehensive infertility benefits accessible to employees, regardless of marital status.

Preserving fertility for future parenthood 

Fertility benefits also play a key role in supporting employees who want to preserve their reproductive options for the future. The latest data from the Society for Assisted Reproductive Technologies shows that 29,083 egg-freezing procedures happen per year in the U.S., while the global sperm banking industry shows a compound annual growth rate (CAGR) of 5.3%, forecast to reach $8 billion by 2030. 

Egg and sperm freezing are a core element of modern reproductive medicine and essential for: 

• Individuals delaying parenthood for career, medical, or personal reasons
• Cancer patients or those undergoing other medical treatments who may wish to start a family after their treatment 
• Transgender individuals who may wish to preserve fertility before transitioning

By covering fertility preservation, employers give employees the freedom to build their families on their own terms, reducing stress and reinforcing long-term retention.

Support your employees’ family plans at Benepass

Every employee embarking on a family-building journey has a unique set of needs, whether they’re pursuing fertility treatments, adoption, surrogacy, or preserving fertility for the future. And their needs don’t end once a child arrives; parenting comes with a host of new challenges, such as childcare expenses and postpartum recovery.

That’s where the Benepass Family Care and Formation Account makes a difference, offering a flexible, inclusive, and equitable solution that adapts to each employee’s circumstances. Here’s how it works: 

• You’ll define what employees can spend their allowance on, such as childcare, eldercare, family planning services, fertility services, or adoption. 
• We’ll code your unique policy into the Benepass Platform and issue Visa cards for your employees. 
• We’ll connect to your payroll system and automate enrollment. 
• You’ll communicate your new family health benefits to your employees and invite them to join their Benepass account from day one. 

In addition to stipends, we also support fertility HRAs. If your organization needs a tax-advantaged solution or a program structured to meet IRS requirements, Benepass can help design and administer HRAs as well. Together, we’ll structure a benefit that balances compliance with inclusivity, ensuring your program truly meets your company’s unique goals and workforce needs.

Ready to support your employees throughout their family formation journey and beyond? Book a free Benepass demo today.