There are two types of cord blood banks. One is the public blood bank. When the donor opts to donate to a public blood bank, cord blood banking cost is not a problem. Donation is free. Although the process of collection, blood testing and cryopreservation is costly, the fee is defrayed for those who donate. But once cord blood is donated, you are not entitled to retrieve it for whatever purposes in the future. The cord blood you donate will be tissue typed and will be added to a database that is accessible to all hospitals worldwide. The donated cord blood will be available for use to the public.
When a patient needs cord blood for transplantation and finds a match from a public cord blood bank, the blood will be subject to a release fee. The cord blood banking cost that will be charged to the insurance will be on range of $30,000 – $50,000 depending on the facility. This is how public cord blood banks get return for their operational expenses. The units of blood in public cord blood banks are also being utilized for research purposes. We have to remember that these public cord blood banks are non-profit oriented organizations.
On the other hand, if the donor will choose a private cord blood bank it is for the reason that they have foreseen the need to withdraw the blood for the use of the baby. It could be due to known regenerative disease in the family like leukemia and diabetes type 1 that would require an autologous transfusion. A private cord blood bank will require a substantial amount for the collection, processing and testing of blood and cryopreservation. The cord blood banking cost for private cord blood bank is approximately $2,000 on collection and $125 per year for preservation. We have to take note that private cord blood banks are operating for profit purposes.
Both private and public cord blood banks claim that they incur operational expenses that are substantial. It is necessary in order to facilitate appropriate testing of the blood. Examples of necessary blood testing are tests for Hepatitis B, HIV, ABO and Rh typing, HLA class 1, aerobic and anaerobic bacteria culture. The mentioned blood testing is costly. Aside from testing, both cord blood banks incur expenses for cryopreservation, collection and operational aspects. These things are considered in the computation of cord blood banking cost.