Human Resources

Domestic Partner Health and Dental Benefits

The state of Iowa offers its non-contract employees and employees represented by AFSCME, PPME and UE/IUP employees the ability to enroll their same sex or opposite sex domestic partner in their state employee health and/or dental insurance.

Quick Access to this Site
Eligibility
Tax Consequences of a Domestic Partner Enrolled in Benefits
Enrollment
Termination of Coverage
COBRA
Domestic Partner Resources
Domestic Partner Frequently Asked Questions	(PDF)   (Web Site)
Domestic Partner Forms
Affidavit of Domestic Partnership
Affidavit of Termination of Domestic Partnership
Certification of Non Full-Time Student Dependent Age 19 to 25
Certification of Same Sex Marriage Tax Dependent Status (CFN 552-0732)

Eligibility

To be eligible for Domestic Partner coverage, you and your domestic partner must meet the conditions outlined in the Affidavit of Domestic Partnership.

Eligible Dependent Child (Children)

Your children or children of your domestic partner may be insured under the health and dental options for which you are eligible. For information on eligible dependent child(ren), review the DAS Health Insurance Web site.

Tax Consequences of a Domestic Partner Enrolled in Benefits

There maybe tax consequences if a domestic partner is enrolled in your health and dental insurance plans.

Non-Taxability of Health and Dental Premiums

Your domestic partner and their dependent children may qualify as Internal Revenue Code (IRC) Section 152 dependents provided certain qualifying conditions are met. Generally, to qualify as an IRC Section 152 dependent of an employee, the domestic partner and partner’s children must be your "qualifying relative."

To be a "qualifying relative,” the domestic partner must meet ALL FOUR of the following requirements:

1. He or she lives with you as a member of your household (shares a principal residence) for the full tax year, except for temporary reasons such as vacation, military service, or education.
2. He or she is a citizen, national or legal resident of the United States or a resident of a contiguous country. (This requirement doesn’t apply to children being adopted by a US citizen or national.)
3. He or she isn’t anyone’s IRC Section 152 qualifying child dependent.
4. He or she receives more than half of his or her support from you.

If qualified under IRC Section 152, health and dental insurance provided by the state is not subject to federal and state withholding and FICA. Additionally, such coverage can be provided on a pretax basis and claims can be reimbursed through a health care flexible spending account.

Taxability of Health and Dental Premiums

If your domestic partner does not qualify as a dependent under the IRS Code, you will be taxed on the value of the state-provided health and dental care coverage for your domestic partner and their dependent children. The state has determined the fair market value of dependent coverage and the fair market value is different for each health and dental insurance plan and the number of non-qualified tax dependents (domestic partner and their dependent children) enrolled. The state will include this excess value of the non-qualified dependent in your gross income and it will be subject to federal and state withholding and FICA and be reported on your form W-2.

Conclusion

Detailed information on the tax treatment of non-qualified tax dependents including the added value table, form and an example is available at the DAS Benefits Tax Treatment of Non-Qualified Tax Dependents Web site.

The rules for determining whether the domestic partner receives more than half of his or her total support from the employee are complicated and more involved than just determining who the “primary bread winner.” is. You should consult with your tax advisor and review the IRS information to determine if you qualify for tax favored domestic partners benefits.

The above information shall not be construed as legal or tax advice.

Enrollment

In addition to completing the Affidavit of Domestic Partnership, you must also complete the necessary insurance applications (IowaBenefits or paper application). The Affidavit and the completion of the insurance enrollment must be completed with 30 days of each other.

Qualified Life Events

When you enroll in health or dental insurance, your elections remain in effect to the end of the calendar year. You cannot make any changes until the next enrollment and change period unless you experience a qualified life event and the benefit change you request is consistent with the event.

If you experience a qualified life event, you can request changes that are consistent with the life event by notifying your Personnel Assistant within 30 days after the date of the event (60 days for birth and adoption.) If you do not notify your Personnel Assistant within the required timeframe following the event, you will not be able to change your benefits until the next enrollment and change period.

For additional information on qualified life events, review the DAS Qualified Life Events Web site.

Termination of Coverage

If the domestic partner relationship is terminated, you must complete an Affidavit of Termination of Domestic Partnership and notify the insurance carrier(s) of termination of coverage. Coverage for the domestic partner will terminate at the end of the month in which the your Personnel Assistant receives the necessary signed insurance application/change notification. The termination affidavit and the insurance change must be signed within 30 days of the insurance change.

COBRA

The former domestic partner and his/her dependents will not be eligible for COBRA and will not be notified of termination. COBRA will not be offered to a domestic partner or his/her children if the employee terminates employment, or if the domestic partner’s dependents have an event that makes them ineligible for your plan.

Site update 06/15/2009