Spousal and Domestic Partner (DP) Coverage Is Available To Both Same-Sex And Opposite-Sex Couples Covered Under Small Business Health Insurance Plans In New York City

Spousal coverage

Same-sex and opposite-sex spouses can be covered under a family policy in New York.

Under New York’s Marriage Equality Act, same-sex spouses are treated no differently than opposite-sex spouses for New York State and New York City tax purposes. This means that insurance premiums paid by an employer for same-sex spousal coverage are not subject to State or City income taxes (e.g., they are excludable).

Domestic partner coverage

Domestic partners are not recognized as eligible dependents for tax favorable status under federal or New York State law. Accordingly, domestic partner health insurance premiums paid by an employer and/or employee are considered taxable employee wages and are subject to payroll and federal, state, and local income taxes.

Offering the same benefits to all employees, including those with DPs, is a way for businesses to attract and retain the workforce needed to be as successful as possible. Several health carriers automatically include DP coverage in their plans while others allow you to add it as a rider.

Eligibility requirements for DP coverage vary among health insurance carriers. Carriers may require proof that domestic partners are financially interdependent, and most require that DPs live together for at least 6 months. In addition, carriers typically require DPs to sign an affidavit acknowledging their relationship and/or show proof that they have registered their relationship in the jurisdiction or municipality where they reside.

Children of DPs may also be added to a health plan and are governed in the same manner as other dependent children.

For information on how to register a domestic partnership in NYC, call (212) 669-2400 or go to: http://www.cityclerk.nyc.gov/html/marriage/domestic_partnership_reg.shtml

Last Updated: May 21, 2012