In June, the U.S. Supreme Court ruled that same-sex marriage must be allowed in all 50 states.  This has several implications for employee benefit plans, including solving much of the administrative complexity that had resulted from different tax treatment and marriage laws in different states.

Here are the key takeaways:

• Fully insured plans are now REQUIRED to offer coverage to same-sex spouses if they offer coverage to opposite-sex spouses. This is effective now, not at the next renewal.
• The ruling creates a qualifying event for any same-sex spouses previously denied coverage to join the plan within 31 days of the date of the decision, which was June 26th. Some carriers are allowing adds through July 31st.
• All legally married couples, whether opposite sex or same-sex, will be allowed to cover their spouses and children on employee benefit plans on a pre-tax basis.
• Same-sex spouses are now universally eligible for Medicaid and subsidies on the exchanges if they don’t qualify for your coverage.
• Self-funded plans are still not required under ERISA to offer coverage for same-sex spouses.  Many legal scholars, however, warn that employers opting out of this coverage may now face discrimination claims under Title VII of the Civil Rights Act.

Please This email address is being protected from spambots. You need JavaScript enabled to view it. if you have any questions about how this ruling impacts the administration of your plan.