Taxed on Benefits
Nina recently talked about domestic partnerships and the benefits that you do receive with those, though minimally really. I thought I would give some personal experience on that. Surfgirl and I have been lucky in that in the 10 years we have been together only 1 year went by that we didn’t have insurance for both of us, either through her job or mine. Thankfully we also live in a state that allows domestic partnerships so the chances of a medium or small company having it are better, from my experience. But how each company handles it is interesting.
I had worked at two different telecommunication companies and was able to have Surfgirl on my insurance with no trouble, I paid like any straight couple would, with both pretax and post tax option depending on the medical, life, supplemental insurance we picked up. No problem.
We also had no trouble with the medical establishment that we went through; Kaiser has been a most satisfactory company to deal, not perfect, but good. We haven’t had any trouble with staff, doctors or billing when it comes to the domestic part of our relationship.
My current job allows domestic partnerships as well, except one thing. I pay taxes on her portion of the insurance along with the amount that is automatically taken out. This is a post tax amount that in our case is a little over 300 a month; it has gone up over the last few years of slightly over 200.
I know that this tax wouldn’t be given to straight couples simply because I have asked my co workers if they are charged, and I have spoken with the HR dept. It is specific for domestic partnership. Bummer! My take home pay could be 300 dollars more a month; and surfgirl has even brought this up that she can just not have insurance and then we can have the extra money. I nixed that idea quickly as I know we would never be able to deal with those medical bills if something did happen to her.
Today I decided to check around at the possibility of buying insurance separately for her and perhaps saving a few dollars a month. I was able to find a broker who could get me a deal that would save me about 30.00 a month, but the co-pay would be higher as well as losing a few other options we have free and the process of transferring wasn’t worth it to me.
So instead we continue with the monthly taxes on our domestic partnership and we deal with the lower amount of money we bring in due to that, because I want to be secure in the thought that if something happens to her bills will be the farthest from my mind. Though it may not be optimal, I am thankful for that little blessing.
You know, it’s not just a gay person’s problem either. I work for a firm with less than stellar health benefits. I have considered dropping out of our insurance and going with a private provider since the quality of care will be about the same for less money with certain plans. (I am lucky to be young, single, no kids, and reasonably healthy.)
Just because you get healthcare from your employer, doesn’t mean you should take it. Shop around!
I read in “Money Without Matrimony” that domestic parntership health insurance benefits always are taxed. My guess is that the previous employer who treated you as if you were a married heterosexual couple were either making an error or covering the taxes for you.
Yep, I think Lisa’s right. What gets me is that not only are you taxed on the part of the premium YOU pay for your partner’s health insurance, but you’re also taxed on the part your employer pays because it’s treated as extra income.
My partner’s employer actually changed their rules for us, so I can be on his insurance, but it cut his take-home pay IN HALF during the brief period after we had our son when we were all on his insurance. I went back to work largely because of this.
My primary employer would cover my partner if we were a same-sex couple. Because we’re heterosexual, he’s not covered unless we get married.
Dawn, Great post. I actually posted something about this unfair taxation last night. There is an act in Congress to remove this inequality. Let’s hope we get to keep out money someday soon!