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The debate over access to
benefits for domestic partners reached a fever pitch in 2006 with a
number of laws enacted at the state level that allow domestic partners
to have the same rights as a spouse regarding inheritance, probate,
guardianship and other rights traditionally accorded to spouses. Insurance matters are no different.
Today,
the number of private employers, nonprofit organizations, and unions in
the United States that offer domestic partner benefits to homosexual or
unmarried heterosexual partners is 9,374. Private-sector companies make
up 8,653 of that total, and 270 are Fortune 500 companies, according to
a 2008 report by the Human Rights Campaign Fund, a Washington
D.C.-based political organization.
The roots of domestic partner benefits go back to
1981, when San Francisco considered legislation to provide benefits to
unmarried couples. "Domestic partners" soon became a legal term used by
private and public employees to extend benefits to an employee’s
unmarried partner of the same or opposite sex.
In 1982, The Village Voice in New York
City became the first private employer to offer domestic partner
benefits. Two years later, Berkeley, Calif., became the first municipal
employer to do so. In May 1997, San Francisco began requiring all
businesses with municipal contracts to offer same-sex benefits if they
offer benefits for married couples.
Those defined as domestic partners include same-sex
couples and unmarried opposite-sex couples. Benefits offered to
domestic partners can be the same as those for married couples, such as
long-term care insurance, group life insurance, bereavement, sick leave
and relocation benefits. The most commonly offered benefits are health, dental and vision insurance.
If your employer offers health insurance coverage for domestic
partners, you’ll probably first be asked to sign an affidavit that you:
Have lived together at least six months.
Are both age 18 or older.
Share a close personal relationship and are responsible for each other’s common welfare.
Are exclusive.
Are not married to anyone else.
Are not related by blood closer than would bar marriage in the state.
Share the same regular and permanent residence, with the current intent to continue doing so indefinitely.
Are
jointly financially responsible for "basic living expenses," defined as
the cost of basic food, shelter and any other expenses of a domestic
partner because of the domestic partnership. (Domestic partners need
not contribute equally or jointly to the cost of these expenses as long
as they agree that both are responsible for the cost.)
Were mentally competent to consent to the contract when the domestic partnership began.
Some employers impose waiting periods that vary from six months to a year before insurance coverage begins.
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Some employers that offer domestic partner benefits exclude
coverage for unmarried heterosexual couples on the grounds that they
have a legal right to get married. This exclusion continues to be
challenged in the courts.
The Employee Benefit Research Institute (EBRI)
pointed out in a 2007 report that studies have shown that offering
domestic partner health insurance costs employers no more than offering
coverage for spouses, and that few workers choose the domestic partner
benefit when it is offered. The vast majority of workers who enroll in
domestic partner benefits tend to be unmarried heterosexual couples.
Private
employers are not required to offer health insurance to any employees,
including domestic partners. Employers that choose to offer health
benefits must follow federal law and state law, when applicable.
In April 2000, Vermont Gov. Howard Dean signed the
first "civil union" law that grants gay couples nearly the same
benefits as heterosexual married couples. The law, which took effect
July 2001, covers taxes, inheritance and medical decision-making.
Massachusetts, Connecticut, Iowa, Maine, and
Vermont currently recognize same-sex marriages and provide couples with
the same rights as traditional married couples. The California Supreme
Court upheld the state's Proposition 8 in May 2009, which restricts
marriage to opposite-sex couples.
New Hampshire and New Jersey have legal unions for
same-sex couples that provide all the rights and responsibilities of
marriage under state law. The District of Columbia, Hawaii, Oregon and
Washington offer legal unions for same-sex couples with varying subsets
of the rights and responsibilities of traditional marriage.
Although some cities, such as New York City, allow
domestic partners to officially register their relationships with the
city, those registries do not constitute legal status as marriage or
common law marriage. In November 2008, the New York insurance
department issued a bulletin to insurers that says same-sex couples who
enter into valid marriages outside New York must be treated as married
people for the purposes of New York insurance law, including health
insurance. That means for New Yorkers with group health plans where you
can add spouses, a same-sex spouse is eligible.
To view a list of state laws regarding domestic partners, visit the
Human Rights Campaign.
Some health insurers have contended that allowing
domestic partner benefits would make them targets of fraud if customers
tried to add relatives or friends onto their health plans. This is why
many employers that offer such benefits require detailed information
from domestic partners to determine eligibility.
Many employers that offer such benefits require detailed information
from domestic partners to determine eligibility for benefits. |
In 2005, the California Insurance Equality Act
required companies with a group policy that provides benefits to
spouses must provide the same benefits to domestic partners. (Companies
with self-insured benefits are exempt from state law.) This made
California the first state to require equal insurance coverage for
domestic partners. Now, over a dozen states have laws on the books that
mandate benefits for domestic partners. To see 2009 state health
insurance mandates, visit the Council for Affordable Health Insurance.
Even if your state doesn't mandate that insurance
benefits be extended to domestic partners, and employer can choose to
include them in group benefits. Many major group health insurers
provide insurance for domestic partners through employers: Ameritas,
CIGNA, Aetna, Kaiser Permanente, United HealthCareGroup, MetLife, Great
West Life, Humana, Mutual of Omaha, Guardian and some Blue Cross Blue
Shield plans. For a list of insurance companies that provide domestic
partner benefits, go to the City and County of San Francisco Human Rights Commission.
Same-sex couples cannot be treated as spouses for
federal tax and employee-benefit purposes, regardless of state law. The
IRS has determined that employment-based health benefits for domestic
partners or non-spouse cohabitants can be excluded from taxable income
only if the recipients are legal spouses or legal dependents.
The federal and state governments do not tax
benefits for spouses. But the federal government taxes benefits for
domestic partners because it does not recognize those relationships.
Also, in some instances, an employee who receives benefits for a
domestic partner has to pay for the premium with after-tax dollars and
then pay taxes again on the cost of the benefit because it counts as
income.
The "Big Three" automakers (Daimler AG, Ford and
General Motors) were the first to offer same-sex benefits starting in
2001. They said that offering domestic partner benefits, including
medical, dental and prescription coverage, is consistent with their
commitment to promoting diversity in the workplace.
Employers say domestic partner benefits are a good recruiting tool. |
Employers say such benefits are a good recruiting
tool to attract a diverse mix of talented people to their companies.
Job candidates want to work for employers that are considered socially
conscious and diverse.
Also, most employers that offer these benefits to
domestic partners do so out of a strong sense of fairness. EBRI notes
that many employers believe that offering benefits to legally married
partners of employees and not offering the same benefits to partners of
non-legally married employees discriminates on the basis of sexual
orientation and/or marital status.
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