Not every couple feels that marriage is right for them. However, plenty of couples build lives together outside of matrimony. In fact, more than half of adults 18 to 44 have lived with a partner without getting married. For committed couples, a domestic partnership can provide a meaningful alternative to formalizing their commitment, without the legal ties of marriage. Domestic partners can even enjoy some of the same benefits as married couples, including access to health insurance.
But what is a domestic partner for insurance and how does it work? In this blog, we’ll cover the ins and outs of domestic partner benefits such as who is eligible, how to enroll, and the financial implications to be aware of.
A domestic partnership is a legal designation that typically refers to any two individuals who live together and share a life but are not married or in a civil union. Even without marriage, the lives of a committed couple can become deeply intertwined to the point that the well-being of one impacts the well-being of the other. Domestic partnerships can provide meaningful legal protections to these couples. Currently, federal law does not recognize domestic partnerships, but certain states do.
If you live in a state with domestic partnership rights, you could be entitled to benefits similar to those of married couples, including:
Each state has its own unique set of domestic partnership rights and regulations. If you believe your relationship qualifies as a domestic partnership, consult with a domestic partnership attorney to understand your rights.
If you’ve enrolled in an employer or Health Insurance Marketplace Plan before, you were probably given the option to enroll a spouse or dependent. That’s because Affordable Care Act-compliant plans must offer family coverage to your dependents, including your spouse or dependent children under the age of 26. Some states view a domestic partner as a dependent, extending them the same rights to health insurance as a spouse or child.
Private employers are not required to offer health insurance. However, if they do, they must follow state and local laws regarding health insurance for domestic partners. To become eligible, you will have to prove that you are in a domestic partnership in most cases.
We’ll cover what you’ll need to verify your domestic partnership in the following sections.
If you’re interested in adding a domestic partner to a health insurance plan, this is a typical list of criteria insurance companies look for when evaluating you and your domestic partner:
Simply meeting these criteria is not enough to receive domestic partner health insurance. You will also need to provide documents verifying your partnership, which we’ll go over shortly.
Federal law does not mandate employer health insurance coverage for domestic partners. However, some states with domestic partnership rights do. Currently, seven states recognize domestic partnerships: California, the District of Columbia, Maine, Nevada, Oregon, Washington, and Wisconsin.
Each state has its own laws regarding domestic partner insurance. Some — but not all — domestic partnership states require employer health insurance plans to provide the same coverage for domestic partners as they do for spouses. Consult with a local domestic partnership benefits attorney to see if your domestic partnership qualifies for health insurance benefits.
If you have health coverage and have recently entered into a domestic partnership, insurance is one of the many benefits your significant other might receive. You don’t need to wait until Open Enrollment, because registering a domestic partnership is considered a qualifying event, making you eligible for a Special Enrollment Period.
Just make sure to notify the benefits administrator at your place of employment, or your insurance carrier, as soon as possible, because time limits do apply. In most cases, you have between 30 and 60 days after the qualifying life event to enroll for new or additional coverage.
So, how can you add a domestic partner to your health insurance? Here are the steps to get started:
Once you’ve provided the necessary documents showing domestic partnership, a health insurance administrator at your place of employment or a service agent at your insurance company can help you finalize your enrollment.
When your spouse or other eligible dependents (such as children) receive health insurance through your employee health plan, that is considered a benefit. However, the same is usually not true for domestic partnership health insurance, because Federal law does not recognize these types of unions. As a result, the value of your domestic partner’s health insurance benefits might be categorized as taxable income, and subject to federal income taxes.
In some cases, you could be exempt from the federal domestic partner health insurance tax, if the IRS determines that your partner is your dependent. It’s also possible for this benefit to be exempt from state taxes if you live in a state that recognizes domestic partnerships.
Consult with a local tax expert to determine whether your domestic partner’s health benefits will be subject to state taxes. In some cases, you might see greater savings by having your domestic partner purchase an individual plan through the Health Insurance Marketplace, especially if they qualify for subsidies.
Once you’ve determined that you can add a domestic partner to your health insurance, it’s time to choose the right plan. Here are some factors to consider:
These are just some factors to consider. However, it’s always useful to read reviews to hear members' real-life experiences.
If you decide that adding your partner to your health plan doesn’t make sense, you can consider putting your domestic partner on a health insurance plan of their own. Here are some available options:
If your partner plans to apply for subsidies or other financial aid, they must do so through the Health Insurance Marketplace’s official website.
Our insurance professionals are ready to answer all of your coverage questions. For insurance guidance you can trust, Insurance ‘N You is here to help you find policies that meet your coverage and financial planning needs.
Our powerful AI tool will pair you with policies that are perfect for your life — and whatever life throws your way. Compare instant health insurance quotes and find your perfect plan today!
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