Spouse Health Insurance Laws

Health insurance laws cover the rights of employees, former employees and their spouses. These laws will affect the insurance coverage under group health plans allowing for continued coverage under temporary circumstances, privacy of health information and who has access to it, and regulations designed to provide the same coverage for spouses without discrimination.

Cobra Continuation Coverage

• The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides temporary continuation of group coverage for former employees and their spouses when it might otherwise be terminated. This coverage is usually more expensive than insurance for active employees, but less than individual health coverage. The qualifying events for spouses to be covered by COBRA include voluntary or involuntary loss of the covered employee's job for reasons other than conduct, reduced work hours for the employee, Medicare coverage of employees, divorce or legal separation from employee, and death of employee.

Health Insurance Portability and Accountability Act

• The Health Insurance Portability and Accountability Act (HIPAA) provides regulations covering individuals to protect their rights for preexisting coverage. It prohibits discrimination against employees and their spouses based on health factors such as prior medical conditions, genetic information and other factors. If the group health plan permits coverage of the spouses, and the spouses participate in the same HIPAA protections as the employees, the spouse will be covered by HIPAA.

Tax Equity for Health Plans Beneficiaries Act

• The Tax Equity for Health Plans Beneficiaries Act protects spouses from discrimination by eliminating the taxation of benefits for domestic partners. Many employees pay extra income and payroll tax for a domestic partner than an employee in a similar situation who has a different-sex spouse. This bill would exclude the employer-provided health insurance value for a domestic partner from the eligible employee's income, taking the burden off employers who offer these benefits and must calculate the taxes separately and pay additional payroll taxes. More than 50 major U.S. businesses who have joined the Business Coalition for Benefits Tax Equity support this act.