Shannon was pregnant with twins and fell so ill that she could no longer work. She was unable to qualify for insurance on her partner’s insurance plan, so she applied for medical assistance, which was available only because she was pregnant. After the twins were born and her health returned, the couple more closely examined the domestic-partner benefits available through the employer of Shannon’s partner.
Benefits were available to Shannon and to the children, but the costs were extremely high. Not only would the amount paid for Shannon’s coverage be taxable, but the employer’s contribution would have been taxable as well. In addition, the plan considered the children Shannon’s, so taxes would have been withheld on contributions for their insurance coverage, too. The combination of costs made it impossible for Shannon and her partner to afford.
Their only recourse would have been for Shannon’s partner to file an affidavit at the end of each year to prove the children were legally hers. Even then, they would not have received the tax money reimbursement until they filed their taxes the following year.
The solution?
“Only the children are covered,” Shannon said. “If I am not on the plan, they consider the children to be legally hers, as the employee. No proof required. If we were married, no one would question if the children were legally my partner’s.”
