Benefits Challenge

An employer decides to cover same-sex domestic partners for the first time under its group health plan. True or false, the fair-market value of the domestic partner's coverage is taxable under the Internal Revenue Code.

• True, a same-sex domestic partner can never receive health coverage on a pre-tax basis, per the Defense of Marriage Act.
• False, a same-sex domestic partner can receive pre-tax health coverage as long as the state recognizes such relationships as valid marriages.
• False, a same-sex domestic partner can receive pre-tax health coverage as long as the individual meets the definition of a dependent who is a "qualifying relative".
• False, a same-sex domestic partner can receive pre-tax health coverage as long as the plan document makes such individuals eligible for coverage.