4 DOMA-related do's and don'ts
March 22, 2013 4:08 PM
1. Dont let the courts define spouse for you.
If your plan doesnt include a formal definition of spouse the courts may define coverage more broadly than the employer intended.
If [an employers] SPD or insurance contract defines spouse as a legally married spouse, then theyre covering same-sex spouses, whether they intended to or not, says Stover. If they want to limit how theyre defining a spouse, they need to review the definition. If the definition is five or 10 years old, the courts might look at that definition very differently now than they would have previously.
2. Do ensure that your HSA program provides the intended benefits.
Since a same-sex spouse is not recognized under federal law that creates some unique challenges for designing and administering consumer-driven plans with health savings accounts.
If an employer sets up an HSA and they are covering a same-sex spouse, the employee cant actually use any of those HSA funds to reimburse spousal expenses because under federal tax law, that same-sex spouse is not a spouse, explains Stover.
3. Do address all employee benefit programs.
While the primary focus of employers is typically medical plans, dont forget to address other programs such as retirement benefits, leave programs, dental and vision programs, and the death or divorce of a same-sex spouse.
You need to make sure the carrier or insurer is willing to cover that spouse and can legally do that in the state that contract might be sited in, says Stover. [These other programs] can sometimes get overlooked when an employers primary focus is on the medical plan.
You need to make sure the carrier or insurer is willing to cover that spouse and can legally do that in the state that contract might be sited in, says Stover. [These other programs] can sometimes get overlooked when an employers primary focus is on the medical plan.
4. Dont think this issue doesnt apply to your plans.
Even employers who dont want to provide benefits to same-sex spouses need to address this area as more and more states recognize same-sex marriages, and employees move from state to state.
