Domestic Partner Health Insurance

Nationally, about 19% of workers have the option of obtaining health care benefits for their domestic partners. Statistics show that the number of domestic partnerships in the United States is increasing. There are more unmarried couples openly cohabiting than ever before in this country's history. In the competitive employment marketplace, provision of domestic partner health benefits may help attract and retain quality employees and many companies are beginning to realize that this is an opportunity to provide a distinguishing benefit over their competition.

In addition, even with the unfavorable tax ramifications, the cost of the employee and domestic partner acquiring coverage through a group plan may sometimes be less expensive then acquiring coverage through an individual policy in the open market in certain areas of country (Note that this is true only in instances where the employer will pay some or all of the health insurance premiums because outside of this then individual health insurance premiums are much cheaper than group health insurance premiums).

Finally, from an overall public policy perspective, regardless of one's moral, social or religious views regarding homosexuality and non-marital heterosexual co-habitation, it is generally regarded to be true that one should encourage health insurance coverage for as many individuals as possible. If domestic partner coverage reduces the number of persons who are without health coverage, then this is a positive result.

The History Behind Domestic Partner Health Insurance

In 1980, the Village Voice, a New York City weekly, became the first employer to offer health coverage to their employees' unmarried domestic partners. During the next decade, this concept remained relatively unfamiliar; fewer than two-dozen U.S. employers offered domestic partner health coverage in 1990. However, through the 90s, domestic partner coverage expanded rapidly. Many companies in California and other states across the nation now offer domestic partner health insurance benefits.

Problems Associated with Domestic Partner Coverage

Taxes

Traditionally, the Internal Revenue Service (IRS) has deferred to state law to define the term "spouse." However, the Defense of Marriage Act provides that same sex domestic partners may not be treated as an employee's spouse for purposes of federal law (and it follows then that a domestic partner cannot be defined as a spouse for the purposes of the COBRA health insurance laws). Same sex domestic partners will not be afforded the preferential tax treatment otherwise available to spouses; nor will unmarried heterosexual domestic partners.

New Hampshire does not have domestic partner civil union legislation as does Vermont which officially recognizes the civil union of homosexual partners who elect to undergo a civil ceremony. The IRS has addressed domestic partner benefits in several Private Letter Rulings (PLR’s), one of which involved a municipality which recognized and solemnized domestic partner relationships. In each case, the IRS determined that the domestic partner was not a spouse, did not qualify as a dependent under IRC §152 and, therefore, the employee was taxable on the health coverage premiums allocable to the domestic partner.

Cobra Health Insurance

COBRA health insurance laws protect certain employees and their dependents by allowing them group health insurance continuation coverage after a “qualifying event”. One example of this is if an employee loses their job (for almost any reason: retires, quits, even gets fired as long as it is not because of gross negligence) dies or is divorced, the "qualified beneficiary" who has been covered by the employer's health insurance plan has a right to continued group coverage for 18 or 36 months depending upon the type of the "qualifying event."

The catch is, as related to domestic partner issues, is that a “qualified beneficiary” within the meaning of COBRA is limited to an employee, spouse or dependent child who is covered under the plan. Qualified beneficiary does not include domestic partners. Therefore, if a domestic partner should lose his/her coverage as a result of a "qualifying event," the domestic partner does not have the right to continuation of coverage. (Note: Continuation of coverage could be provided voluntarily by the employer with the cooperation of the health insurer or HMO – many companies, especially in California; will offer this “above and beyond the COBRA law” benefit).

Keep in mind; there is no federal mandate for continued coverage for a domestic partner as there is with all other employers of 20 or more employees. Moreover, even if the employer wishes to provide domestic partner coverage voluntarily, to include COBRA rights, the insurance carrier underwriting the plan may not be willing to provide that coverage and in turn deny the employers request (to learn more then read the article COBRA health insurance).

Health Insurance Companies that Offer
Domestic Partner Shared Benefits

Almost across the board, no insurance company (health or otherwise) offers discounted services to couples unless they are legally married, which would exclude same sex couples, except possibly for Vermont same sex couples who have united in a civil union. If you are looking for domestic partnership health insurance benefits you will most likely not find them at a discounted rate, but there are some insurance companies that will offer shared benefits.

While terms and services may vary according to where you live, a list of insurance companies that have traditionally given domestic partnership health benefits are listed below:

Domestic Partner Health Insurance Quotes

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