Currently, about one-third of companies with more than 500 employees offer domestic partner benefits. But the percentage drops off sharply when smaller employers are counted, said Mary Jo Hudson, director of Ohio Department of Insurance.
When it comes to medical care and protecting your family’s health, we’ve got you covered. Many employers ask couples to prove that their relationship is a legally binding union, however in nearly every state in the U.S. that proof is simply not available. Hence, domestic partner’s are not eligible for medical coverage.
According to a recent New York Times article, unlike married couples, domestic partners must pay federal and state taxes on health care benefits. That’s because the Internal Revenue Service counts the value of the domestic partner’s benefit as income for the employee. On top of that, pretax dollars from an employee’s flexible spending accounts or health savings accounts cannot be used to cover the domestic partner’s benefits.
If you are lucky enough to work for a company that offers coverage to domestic partners, what happens if you are your partner loses their job? Cobra might cover you…might. Cobra is a federal law, thus is can easily hold true to the Defense Of Marriage Act and refuse to offer you and your children coverage under your partner. It’s an entirely sticky situation.
The way I see it, you have a few options. First off, make sure you have every T crossed and every I dotted to prove you are in a committed relationship. If your state offers a domestic registry, sign up. Take care of your parental rights, your power of attorney, your taxes, and your properties. Doing all of these things will help protect you and will help to insure your medical coverage.
However, there is always a small chance that you still will not be covered should your partner lose their job. With programs like the No Insurance Club, you can be assured medical coverage for you and your family.
