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Exploring Options for Domestic Partner Benefits

Although complete statistics are elusive, the Human Rights Campaign’s WorkNet project has documented more than 4,000 employers that offer domestic partner health insurance benefits.

Still, the fact remains that the majority of lesbian and gay employees do not have access to health insurance or other benefits for their uninsured partners. If you and your partner find yourself in this situation, here are some options to consider.

Other sources of group coverage: Generally speaking, group health insurance (which is what most employers provide) is more affordable than individual coverage. A wide variety of nonprofits use their group buying power to get discounted health insurance. If you belong to any sort of trade, professional, or even civic organization – or are eligible to join one – contact their member services department to see what they have to offer. Most of these organizations are more than happy to speak with you – in fact, many use these benefits as a recruiting tool to increase their membership. If you can find good coverage at a fair price, becoming a member may just be the way to go!

For the self-employed: An uninsured domestic partner who is self-employed or maintains a part-time side business may have even more alternatives. First, health insurance agents and brokers sometimes are aware of opportunities to “pool” small businesses to create a small group; ask your financial advisor if he or she is aware of any such opportunities in your area.

Medical Savings Accounts: Another possibility that is often overlooked for helping self-employed individuals obtain health coverage is the Medical Savings Account (MSA) program. MSAs were authorized by Congress in 1996, but have never really caught on as intended. An MSA combines high-deductible health insurance with a savings account that later is used to pay out-of-pocket expenses until the deductible is met. The policy’s original goal of putting individuals in charge of health care purchases and thus restoring a modicum of market discipline to the health care industry hasn’t really played out. However the MSA program can be a great way for eligible individuals to trim their health care expenditures. A financial advisor can direct you to the insurers in your area who offer MSAs and help you evaluate whether an MSA can play a role in your overall planning.

Finally, if your employer doesn’t offer domestic partner benefits, try to find out why. Sometimes, it’s simply because no one has asked. Other times, it’s because employers are unsure about the issues and costs surrounding domestic partner benefits; in this case, there are resources available to help you help your employer better understand these issues.

August 1, 2002

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