Is Cord Blood Banking A Scam? What Doctors Aren’t Telling You

Before we can tackle the ‘scam’ question, it’s essential to understand what we’re actually talking about. When a baby is born, the blood left over in the umbilical cord and placenta is known as cord blood. For a long time, this was considered medical waste. However, we now know it’s a precious resource.

Cord blood is rich in a specific type of powerful cell called a hematopoietic stem cell (HSC). Think of these as master cells of the blood and immune system. They have the remarkable ability to develop into various types of cells, including:

• Red blood cells: which carry oxygen throughout the body.
• White blood cells: which fight infection.
• Platelets: which help blood to clot.

This regenerative power makes these stem cells a cornerstone of certain medical treatments. For over 30 years, cord blood transplants have been used to treat more than 80 different diseases. These are primarily cancers of the blood like leukemia and lymphoma, inherited blood disorders like sickle cell anemia and thalassemia, and certain immune system and metabolic disorders. In these cases, a patient’s diseased or damaged bone marrow is replaced with healthy stem cells, which then rebuild a new, healthy blood and immune system. It’s an established, life-saving medical procedure.

The value of cord blood stem cells is not in question. The real debate centers on who should store it and for whose potential use.

This is the central decision you face. You can either pay to store your baby’s cord blood for your own family’s exclusive use (private banking) or donate it for free to a public bank where it can be used by any matching patient in need. These two paths have vastly different costs, implications, and benefits.

Private Cord Blood Banking

With private banking, you enter into a contract with a for-profit company. They provide a collection kit, coordinate with your hospital, and then process and cryogenically freeze the cord blood unit in their facility. You pay a significant initial fee for this service (often ranging from $1,000 to over $2,500) and an ongoing annual storage fee (typically $100-$300 per year). The promise is that these cells will be a perfect genetic match for your child and a partial match for other family members, available if ever needed.

Public Cord Blood Donation

Public donation is an altruistic act. If you choose to donate, the process is free of charge to you. The collected cord blood is sent to a public bank, where it is tested, typed, and listed on a national and international registry. Doctors around the world can search this registry to find a life-saving match for a patient in need. Once donated, the cord blood unit is no longer yours; it belongs to the public inventory. This is particularly crucial for patients from diverse ethnic backgrounds, who often have a harder time finding a matching adult bone marrow donor.

To see the differences clearly, let’s compare them side-by-side:

The word ‘scam’ is strong, but it reflects the genuine concern many parents have. The feeling arises from a disconnect between the marketing promises and the medical statistics.

The Marketing vs. The Reality

Private cord blood banks often market their service as ‘biological insurance,’ a simple way to protect your family against future diseases. They may highlight emerging research in regenerative medicine for conditions like cerebral palsy or autism, suggesting future uses are just around the corner. While this research is promising, these are still experimental therapies, not standard, approved treatments. There is no guarantee that the stored cord blood will ever be used for these purposes.

The medical reality, as stated by the American Academy of Pediatrics (AAP) and the American College of Obstetricians and Gynecologists (ACOG), is that the chances of a child needing their own cord blood for a currently approved treatment are very, very small. Why?

• Genetic Conditions: If a child is born with a genetic disease (like many leukemias or immune disorders), their own cord blood stem cells contain the same genetic defect and therefore cannot be used for a transplant. They would need cells from a healthy donor.
• Insufficient Volume: A single cord blood collection often does not contain enough stem cells to treat a teenager or an adult. As a person grows, they need a larger dose of cells for a successful transplant.
• Low Probability: The lifetime probability of needing a stem cell transplant is low, and the probability of using one’s own stored cord blood is even lower, estimated by experts to be between 1 in 2,700 and 1 in 20,000.

Because of these factors, leading medical organizations do not recommend private cord blood banking for families without a known, specific risk factor. Instead, they strongly encourage public donation.

“For the vast majority of families, private cord blood banking is an expensive purchase that is unlikely to ever be used. Public donation, on the other hand, costs nothing and has the potential to save someone’s life.” – A sentiment shared by many pediatricians and hematologists.

Yes, but they are specific and uncommon. While public donation is the best choice for most, private banking can be a medically sound decision in certain high-risk situations. The key difference is a pre-existing, diagnosed need within the immediate family.

The AAP suggests that parents may want to consider private banking if they have a child (a full sibling to the new baby) who has a condition that could be treated with a stem cell transplant. Examples include:

• Certain types of leukemia or other blood cancers
• Sickle cell anemia or thalassemia
• Severe combined immunodeficiency (SCID) or other immune system disorders
• Certain metabolic diseases

In these cases, a sibling has a 25% chance of being a perfect genetic match, making their cord blood a valuable, targeted treatment option. This is a far cry from the speculative ‘what if’ scenario sold to the general public. If you believe your family falls into this category, it is crucial to have a detailed conversation with your obstetrician, a pediatrician, or a genetic counselor. They can help you understand the specific risks and whether private banking is a reasonable medical precaution for your family.

This is not a decision to be made based on a brochure you received in the mail. It is a targeted medical strategy for a known and present risk.

Feeling empowered in this decision comes from asking the right questions. Whether you are leaning toward private banking or public donation, being prepared will help you navigate the process. Here is a checklist to guide your conversations.

Questions for a Private Cord Blood Bank:

1. What are all the associated costs? Ask for a complete breakdown of the collection fee, processing fee, and the annual storage fee for the full term (usually 18 or 21 years). Are there any hidden fees?
2. What is your company’s accreditation? Look for accreditation from the AABB (Association for the Advancement of Blood & Biotherapies), as this is the gold standard for processing and storage protocols.
3. What is your success rate? Ask how many of the units they have stored have been successfully used in treatments.
4. What happens if the company goes out of business? A reputable bank should have a plan in place to transfer stored units to another accredited facility.
5. How is the sample transported and how quickly is it processed? The viability of the cells can be affected by time and temperature.

Questions for Your Doctor or Midwife:

1. Based on our family’s medical history, do you see any specific reason for us to consider private banking over public donation? This is the most important question.
2. Which hospitals in our area partner with public donation programs? Not all hospitals are equipped to handle public donations, so you need to plan ahead.
3. What is the collection process like? Reassure yourself that it is a safe, painless procedure that happens after the baby is born and the cord has been clamped and cut. It poses no risk to you or your baby.
4. In your professional opinion, what do you recommend for a family like ours? Hearing a trusted medical provider’s perspective can provide immense clarity.