article: As a Lesbian Mother, I Have to Pay More For Health Care

[Shallah Kali]

Gays and lesbians remain separate and utterly unequal in the eyes of the law when it comes to obtaining health insurance for their families.

http://www.alternet.org/reproductivejustice/142648/unbelievable%3A_as_a_lesbian_mother%2C_i_have_to_pay_more_for_health_care?page=entire

J and I celebrated and felt blessed to be in a position where it seemed we could make decisions for our growing family just like our heterosexual friends. When it came time to read the not-so-fine print, however, we were stunned to realize that “equal access" was a complete distortion of what these domestic partner benefits offered. Yes, we could all be on the same plan if need be, but unlike our heterosexual, married friends, we would be taxed -- and heavily -- for the privilege.

Few people -- gay or straight -- realize that there are significant tax consequences that attach to DP benefits. As one human resource professional explained it:

Domestic partner benefits may be taxed differently than married couples benefits. In general, no tax consequence follows for the family when an employer provides health insurance for the employee’s spouse and legal dependents. However, an employee whose domestic partner receives health benefits would normally include the cost of those benefits as taxable income.

In other words, if you’re a married heterosexual and put your family on your company’s health plan you get the double benefit of health insurance coverage and freedom from taxation on the value of that plan, although it’s technically “income" by IRS standards. But if you’re unmarried, you get no such forgiveness by the IRS -- the value of that health care coverage for your partner (and any pre-tax contribution to the plan) is instead calculated as income by the IRS and summarily taxed.

Even in those few states that allow gay and lesbian couples to wed the situation is little better, since those marriages aren’t recognized by either the federal government or the IRS. So claiming the benefit means seeing significantly less money in your paycheck than your married peers -- so much less, in many cases, as to make the possibility of choosing domestic partner benefits completely untenable. Many unmarried straight couples take one look at the difference the tax burden makes in their take home pay and hasten themselves to the county clerk’s office or chapel, to make their partnerships legal. But for families like mine, no such option exists whether or not our state allows us to marry. The federal Defense of Marriage Act (1996) made sure of that by “ invalid most state or local tax provisions for gay, lesbian, bisexual and transgender families for the purpose of federal taxes."

http://www.alternet.org/reproductivejustice/142648/unbelievable%3A_as_a_lesbian_mother%2C_i_have_to_pay_more_for_health_care?page=entire

[MountainLaurel]

1. Yet another facet to the issue

Which makes me wonder, who isn't getting screwed by this country's health care system?