Domestic partner health insurance coverage

The American Institute of Physics offers medical and dental/vision coverage through its insurance carriers to same sex and opposite sex domestic partners of its active employees. Premiums for the domestic partner will be charged at full cost. In addition, these benefits will also be extended to the children of the domestic partner. Domestic partners will also be included in the following policies: bereavement leave, sick leave, and "Family/Medical Leave".

Eligibility

Domestic partners will be defined as two adults of the same or opposite sex who are not related by blood, who have lived together continuously for at least one year and plan to do so indefinitely, are mutually responsible for their common welfare, reside at the same address, and maintain no other domestic partnerships or marriage.

Completing an affidavit and enrollment form

An employee who is interested in Domestic Partner Benefits must read and sign an affidavit. In addition to the affidavit, domestic partners must show that they reside together and are financially interdependent.

Employees and their domestic partners, who have registered as domestic partners in their city or state, must provide proof of the registration to meet the residency and financial interdependence requirement. OR
Proof of residing together can include driver's licenses or passports showing the same address, mortgage documents or rental agreement.
Proof of financial interdependence can include a joint checking account.

Enrollment

New employees must request coverage within their eligibility period as defined by AIP’s policy. Requests for coverage after the initial enrollment period may be denied, unless the domestic partner has lost existing health coverage, as defined under the terms of AIP’s plan (qualifying event). The domestic partner must be enrolled under the same health plan as the employee.

Tax Consequences

Unless the domestic partner is considered the employee’s dependent under the Internal Revenue Code, the IRS treats the value of the dependent health insurance as imputed income. Employees are advised to review the consequences of electing this benefit with their own tax advisor.

Payment of Premium

Unless a domestic partner and his or her children meet the definition of a tax dependent for health coverage purposes under the Internal Revenue Code, the fair market value of any employer-provided health coverage (less any after-tax contributions the employee makes toward the coverage) is considered taxable income to the employee for federal purposes. Therefore, while employees can purchase spousal coverage on a pretax basis through a cafeteria plan, domestic partner coverage typically must be paid for on an after-tax basis (unless the partner and children qualify for tax-free coverage under the plan). This difference in tax treatment can have important implications under the IRS regulations governing midyear cafeteria plan election changes.

In some states, domestic partners may receive favorable (nonfederal) tax treatment if they satisfy registration requirements, join in a state-recognized civil union or meet other state-specific standards. At AIP, employees who cover domestic partners will pay the same pre-tax contributions out of their paychecks; however, income for the fair market value of domestic partner coverage will be imputed as taxable income.

End of Domestic Partnership

If at some point the terms of the domestic partner relationship are no longer met, the employee must advise in writing Human Resources within 30 days of the change.

Legal Consequences

Employees are advised to consult an attorney regarding the possibility that filing an affidavit of domestic partnership may have certain legal consequences, including the fact that it may in the event of the termination of the partnership relationship, be regarded as a factor in court to treat the relationship as the equivalent of marriage for the purpose of establishing and dividing community property or for ordering payment of support.