What is Domestic Partner Coverage?

A domestic partnership is a legally recognized union between an unmarried same- or opposite sex couple that allows them to enjoy certain benefits and protections under the law. In California, one of these benefits includes group health insurance coverage for domestic partners.

Domestic partner health coverage must provide the same coverage at the same level that it would for an enrolled party’s spouse. Health, vision, and dental coverage may all be included. An employer that offers other forms of insurance, such as life or disability, may also offer domestic partner coverage for those as well.

Equal access to personal health insurance can help employees and their partners and families maintain good health and seek timely care when needed. Group plans may include HMOs, PPOs, or POS plan, each of which has pros and cons that should be carefully weighed to determine which might be the best plan for a particular couple or family.

Having access to domestic partner coverage can be very beneficial, particularly for those who are unemployed or self-employed or who have pre-existing health conditions. Unfortunately, there can be some financial drawbacks.

Although California does not tax domestic partnership health insurance premiums and benefits, they are considered taxable on a federal level. Because the federal government does not yet recognize domestic partnerships, they will exact taxes on both the amount of the insurance premiums as well as any benefits paid. This can become quite expensive in some situations and may not be worth the extra expense for some couples.

In the end, as with other health care decisions, this one is personal and can vary according to the couple’s needs. For a couple with pre-existing conditions or where one partner struggles with locating affordable benefits, domestic partnership insurance can be particularly helpful. For other couples, maintaining separate plans may be the best option. If you are uncertain about which may be best for your unique situation, a qualified insurance professional can help.

Source: Health Insurance Los Angeles

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