The Hidden Cost of Health Care for Same-Sex Couples

[William769]

For same-sex couples, whose marriages aren't recognized by the federal government, the costs of getting health care add up quickly.

Mike Bosia and Steven Obranovich, of Hardwick, Vt., were married three years ago after Vermont legalized same-sex marriage. As Bosia's spouse, Obranovich is entitled to health insurance through Bosia's employer, Saint Michael's College in Colchester.

But that coverage comes at a cost.

The couple estimates that they have had to pay $4,500 in additional federal income tax and filing-related expenses because the federal government is prohibited by the Defense of Marriage Act from recognizing same-sex marriages. Bosia, 51, has to pay that tax on the value of the health coverage he gets for Obranovich, 45.

Bosia says the difference in tax treatment at the state and federal levels creates headaches for the couple’s accountant at tax filing time.

Dealing with the different rules, he says, "takes more time and costs more."

According to a report published by two think tanks, the Center for American Progress and the Williams Institute, which conducts research on gender identity and sexual orientation, an employee who buys health insurance for a domestic partner of the same or opposite sex pays $1,069 more a year in federal taxes, on average, than a worker in a heterosexual marriage would pay for the same coverage.

http://www.advocate.com/health/2013/04/09/hidden-cost-health-care-same-sex-couples

[REACTIVATED IN CT]

1. Not only is the cost of the spouse's coverge taxable for

federal purposes (FIT,FICA, etc) but an employee can't make pre-tax payments for heir contributions for.the same-sex spouse rhru a cafeteria plan. Nor can the spouse be covered under a Flexible Spending plan (FSA). when I had to impute income on a W2, I had to use the cost of single coverage as the value of the spouse's coverage even if the employee already had family coverage for his/her kids. So, even though the company didn't pay a penny more to cover the same sex spouse the employee got hit with snother $6,000 of taxable income.

Marriage is an economic arrangement as far as the State is concerned

[MNBrewer]

2. My partner has to pay tax on the benefits we obtain through his employer

Thanks, Bill Clinton and Paul Wellstone.

[REACTIVATED IN CT]

3. I think thepotential loss of this tax revenue is why DOMA has not been repealed n/t

[MNBrewer]

4. Republicans hate all taxes

except the ones paid by teh gays.

[mitchtv]

5. I've been getting that little add on to my W2

for years so far.