Unlike married couples, domestic partners don’t automatically qualify for spousal health insurance benefits.But if you’re in a domestic partnership, you still have options, even if you aren’t eligible for employer-sponsored health insurance coverage.
Whether you’re a domestic partner seeking insurance or an employer structuring benefits for employees, this guide will provide you everything you need to know to make informed decisions and get a plan in place.
What Is a Domestic Partnership?
Colorado state law formally recognizes domestic partnerships, but they don’t have the same automatic legal status as marriage.
Unlike some states that offer a formal domestic partnership registry, Colorado does not require official registration at the state level. Instead, Colorado residents can establish a domestic partnership through civil union, private agreements, or employer-defined policies. While civil unions offer similar legal protections to marriage, not all domestic partners choose this option.
For health insurance purposes, employers and insurers set their own definitions of what qualifies as a domestic partnership. Common requirements include:
- A signed affidavit stating that both partners share financial responsibilities and live together. (You’ll find a sample affidavit below. But check with your employer or carrier to see if they have their own form already that you must use.)
- Proof of joint residency, such as a shared lease or mortgage statement.
- Financial documentation, such as joint bank accounts, utility bills in both names, or shared debt.
- Evidence of shared dependents, including co-parenting agreements or medical proxy documents.
FREE QUOTE
COLORADO HEALTH INSURANCE
Civil Unions vs. Domestic Partnerships Under Colorado Law
The Colorado Civil Union Act, enacted in 2013, formally granted legal recognition to civil unions in the state.
Civil unions provide many of the same rights and protections as marriage, including the ability to make medical decisions for a partner, inherit property without a will, and access health insurance benefits through an employer.
Unlike domestic partnerships, civil unions are legally recognized statewide and must be formally registered with a Colorado county clerk’s office.
But while civil unions provide many of the same legal protections as marriage under state law, they are not recognized at the federal level. This means that federal benefits, including tax advantages and Social Security spousal benefits, do not apply to civil union partners.
For this reason, civil unions provide stronger legal protections than domestic partnerships.
More information on registering a civil union can be found through the Colorado Department of Public Health & Environment or your local county clerk’s office.
TIP: If you’re applying for health benefits as a domestic partner, start gathering documentation early. Each employer or insurer has different requirements, and missing paperwork could delay coverage.
Employers that offer domestic partner coverage should establish clear eligibility criteria and communicate them effectively to avoid confusion or disputes.
Health Insurance Options for Domestic Partners in Colorado
Domestic partners in Colorado can obtain health insurance through an employer-sponsored plan or by purchasing an individual policy.
Each option has unique benefits and potential challenges. Employer-sponsored coverage tends to offer lower premiums due to employer contributions, but it may have limited provider networks. Individual health plans allow greater flexibility in selecting providers but may come with higher costs unless subsidies or tax-advantaged accounts help offset expenses.
If you’re unsure which type of plan fits your needs, a ColoHealth Personal Benefits Manager can help you evaluate options and find the most cost-effective solution.
Affordable Care Act (ACA) Considerations
The ACA requires insurers to offer coverage to all individuals regardless of marital status.
However, federal law does not require employers to provide health benefits to domestic partners. Some state laws and employer policies extend benefits voluntarily.
Since health insurance rates vary significantly, it’s a good idea to get quotes from multiple carriers before selecting a plan. Contact a ColoHealth Personal Benefits Manager for free assistance in finding the most affordable plan for your unique needs.
Employer-Sponsored Health Insurance for Domestic Partners
Many Colorado employers offer domestic partner benefits, but eligibility and coverage rules vary.
If your employer provides domestic partner health insurance, you’ll typically need to submit documentation proving your relationship. Employers may require an affidavit of domestic partnership, financial records, or proof of shared residence.
Taxation of Employer Group Health Insurance for Domestic Partners
Unlike spousal benefits, health coverage for domestic partners of employees is generally considered taxable.
Exception: The value of health coverage is not taxable if the partner qualifies as a dependent under IRS rules. This means:
- The value of the employer-paid portion of the premium is added to the employee’s taxable income.
- The employee may pay additional payroll taxes on the imputed income.
- The domestic partner’s premiums are typically not eligible for pre-tax payroll deductions unless they qualify as a tax-dependent.
ColoHealth does not provide tax advice. For specific information on whether you or your partner may qualify for a dependent, consult a qualified tax professional.
Colorado Legal Protections for Domestic Partner Health Insurance
Colorado law prevents insurers from denying domestic partners coverage if they meet eligibility criteria.
However, private insurers and employers can define their own partnership requirements, leading to variability in coverage options.
Public employees—including state and municipal workers—often have broader access to domestic partner benefits. Many government agencies extend health insurance coverage to qualified domestic partners, regardless of gender or marital status.
To learn more about your rights as a domestic partner under Colorado law, visit the Colorado Civil Rights Division website.
FREE QUOTE
COLORADO COST-SHARING
Conclusion
Finding the right health insurance for domestic partners requires careful planning.
Whether selecting an individual plan or enrolling in employer-sponsored coverage, it’s important to compare costs, benefits, and tax considerations.
A ColoHealth Personal Benefits Manager can help you navigate your options and secure the best coverage. Our expert team provides personalized recommendations, side-by-side comparisons, and free health insurance quotes tailored to your and your family members’ unique needs. Connect with a ColoHealth Personal Benefits Manager today.
For Further Reading:
Leslie Alford is a Personal Benefits Manager at ColoHealth. Her aim is to help you make smart and informed healthcare coverage decisions that will fit your needs and budget. Read more about Leslie on her Bio page.
