Beginning May 1, 2013, Colorado will recognize civil unions entered into by same-sex and opposite-sex couples, giving these individuals benefits otherwise reserved for married people.
An insured health plan issued, delivered or renewed in Colorado on or after January 1, 2014 will be required to treat a civil union and a marriage the same. Therefore, if an employer in Colorado offers health coverage to the spouse of an employee, the employer must also offer health coverage to a civil union partner of an employee. The requirements do not apply to an employer’s self-funded health plan.
Since a civil union is not a marriage for federal law purposes, the federal Defense of Marriage Act (DOMA) will not recognize the Colorado law, and certain benefits offered by Colorado employers under federal law will not be available to civil union partners.
While COBRA continuation coverage will not apply to a civil union partner due to DOMA restrictions, beginning January 1, 2014, civil union partners participating in insured group health plans will be entitled to continuation coverage under Colorado state law.
The payment for health coverage for a civil union partner will continue to be made with after-tax dollars for federal tax purposes, and any employer contributions toward civil union coverage may be imputed income to the employee. State tax implications may differ.
