implications of offering domestic partner benefits?

hr traci

Our company is considering offering health benefits for "domestic partners" and we are located in Michigan & Georgia. How do you determine what constitutes a "domestic partner" (i.e. length of cohabitation, same sex or all cohabiting couples, etc.)?

What other HR policies are then affected if we recognize domestic partners as dependents on the health benefits? I am looking for feedback on the best way to implement this if we go ahead with it. Thanks for any info you can provide!

Don D

If you want to pattern your policy after those states that mandate them, I suggest you get a copy of the definitions from one of the states like California or Vermont. I won't opine on the wisdom of the Company's decision, but will speculate that if they are determined to do this, they would probably want to follow one of the established state policies already in existence rather than create a new wheel.

hr traci

Thanks for the advice - by the way, the company probably won't actually do this until next plan year if it even happens at all. We want to investigate the options available so we can provide a detailed response to employees that are requesting this. We are a small company (just under 100 ee's) so the cost basis is a big factor on how feasible this is.

Rockie

Good advice from Don. Otherwise, your company is going to open itself up to all types of "co-habitation" issues and drive your expenses up as well.
In South Carolina, we have what is known as "common-law" marriage,which, in the eyes of the law, is the same as being legally married. There is a time limit on this (I think six years of cohab) and there are some other legalities attached to it as well.

One of our employees found out about this the hard way. She and her partner have been together for many years in a cohabitative state. They then decided to go their separate ways and he went after part of her retirement benefits. Of course, she thought since they weren't "married" he wasn't entitled to anything. WRONG. She actually has to go through divorce proceedings the same as a "legal" marriage and he may or may not be entitled to some of her assets.

Another employee was going to get married as she was expecting her "live-in's" baby. He has children by a previous "live-in" who is currently residing in New Jersey. Our employee found out if she married this guy, that the previous live in could go after part of her salary for increased child support. She decided that marriage was not necessary.

Oh, and we thought being married was complicated!

hr traci

Thanks for examples of the "worst case scenarios"! We know it could open a huge can of worms on many issues, even if the states we are located in do not mandate this type of coverage.

mikicini

We require a legal notarized "Affadavit of Domestic Partnership" that states several conditions for the definition of "domestic partner". I would be happy to e-mail it to you as it is 3 pages long. There is also a "Revocation of Domestic Partnership" that must be signed to remove from insurance once the partener is enrolled.