MEMORANDUM

DATE: August 24, 2001

TO:  The Board of Regents

FROM:    Regent Robert Sievers and Regent Susan Kirk

SUBJECT:   Eligibility of Domestic Partners for Enrollment in University of Colorado Employee Health Plans

I.  REQUEST FOR ACTION BY THE BOARD OF REGENTS

The following resolution is submitted for action at the September 6, 2001, meeting of the Board of Regents.

WHEREAS, in accordance with eligibility requirements for health care coverage established by the University for the group benefit plans offered to its employees, retirees, and their dependents, employees may enroll their legal spouses and their eligible dependents in the University s health care plans; and

WHEREAS the University s health care plan eligibility requirements currently do not permit the enrollment of some domestic partners of employees and the partners  otherwise eligible dependents;

RESOLVED that the Board of Regents hereby rescinds its action of April 21, 1994, in which it was resolved that the Board limit the insurance coverage provided under insurance contracts entered into by the University to the present categories of eligible insured ; and

FURTHER RESOLVED that the Board of Regents approves the addition of  domestic partners  and domestic partners  dependent children  as categories of persons eligible for enrollment in the University of Colorado health care plans, effective with the 2001 enrollment period or the earliest enrollment period thereafter, according to the attached Eligibility Criteria for Domestic Partner Coverage ; and

FURTHER RESOLVED that, insofar as the general intent of this resolution is accomplished, the Board of Regents authorizes the University administration to adopt such procedures for implementation of the attached Proposal to Provide Domestic Partner Health Insurance Coverage  as may be necessary to comply with applicable law, policy, and sound business practice.

 

II.    STATEMENT OF INFORMATION

In March of 1996 the University of Colorado Faculty Council passed a motion in support of the extension of health care benefits to domestic partners.  In December of the same year the Council expressed its desire to renew discussions about domestic partner insurance with the Board of Regents.  In response, the Board s Academic Planning Committee was asked to review the issue of domestic partner benefits and to report by the following summer (1997) on the availability of such benefits in other colleges and universities and in the private sector.

At the Committee s request and in order to focus the discussion, System Administration drafted a proposal that was discussed at the Committee s May 1997 meeting, at which time the Committee asked that the proposal be considered at the June 1997 meeting of the Board of Regents.  At the June 1997 Board meeting the chairs of the Faculty Council, the Staff Council, and the Intercampus Student Forum spoke in favor of the proposal.  The proposal was defeated.  Since the vote of the Board of Regents in June of 1997, University governance groups have expressed their support for health benefits for the domestic partners of University employees or for employee-plus-one  coverage.

Currently, University health care plans provide coverage for the employee and the employee s legal spouse and dependents.  Under the Colorado Uniform Marriage Act, a marriage is valid if it is licensed, solemnized, and registered as provided by statute or if it is a valid marriage under the common law.  Each partner to a valid formal marriage therefore is the legal spouse of the other by operation of statutory law.  Similarly, if a marriage exists under the common law, each partner to the common law marriage is the legal spouse of the other.  In the case of a formal marriage, the status of the legal spouse may be established by providing documentary evidence that the marriage has taken place.  In the case of a common law marriage, the status of the legal spouse may be established by completion of an affidavit acknowledging the existence of a common law marriage signed by both partners to the marriage.  The proposal accompanying this resolution would provide a third and distinctly different way of establishing eligibility for University health care benefits for domestic partners who met the established criteria.

Medical plan options currently offered through the University s health care plans include: CIGNA/UANet Direct, CIGNA/UANet Choice, Kaiser Direct, Kaiser Choice, One Health/GWL Direct, One Health/GWL Choice, Great-West Life Ultimate, and Great-West Life Catastrophic.  Two dental plans are available: Delta Exclusive Preferred Option (EPO) and Delta Preferred Option Plan (DPO).  In addition a Medicare Supplement is offered by Great-West Life.  A change in eligibility criteria for these plans may require an amendment to the University s contract with each provider.  Domestic partner benefits are not provided in the State of Colorado s health plans, which are available to the University s classified staff at the staff member s option.

 

III.   PREVIOUS ACTIONS

On April 21, 1994, following discussion of student health insurance coverage on the Boulder campus, the Board of Regents adopted the following resolution:

RESOLVED that the Board limit the insurance coverage provided under insurance contracts entered into by the University to the present categories of eligible insured.

At the meeting of the Board on June 4, 1997, the University System Administration, at the request of the Faculty Council, asked the Board to consider a resolution aimed at expanding eligibility to enroll in CU health plans.   The resolution was defeated.

At the Board meeting of April 19, 2001, Regents Sievers and Kirk gave notice of a motion to add domestic partners and domestic partners  dependent children as persons eligible for coverage under the University s health care plans; the Board held discussion of the motion at that time.  The matter was further discussed at the May 10, 2001, meeting of the Academic Planning Committee and public comment was taken.  The resolution was continued as a notice of motion at the June 21, 2001, Board meeting.  Additional discussion was held and public comment was taken at the August 1, 2001, meeting of the Academic Planning Committee.  At the August 2, 2001, meeting of the Board, Regents Sievers and Kirk withdrew their motion and announced their intention to submit a new resolution that would incorporate a simpler definition of domestic partners.

ATTACHMENTS

Attachment A:  Proposal to Provide Domestic Partner Health Insurance Coverage

Attachment B:  Eligibility Criteria for Domestic Partner Coverage under Health Care Plans Offered by the University of Colorado 

It is proposed that the domestic partners of University of Colorado employees and the dependent children of the domestic partner be eligible for enrollment in health insurance plans offered by the University of Colorado.

Under this proposal, the University s System Administration is authorized to negotiate the addition of employees  domestic partners and the partners  dependent children to the categories of those eligible for coverage under medical and dental insurance plans entered into by the University with private insurance companies.

Active employees (faculty, unclassified staff, and classified staff), faculty retirees, and PERA retirees under age 65 will be permitted to enroll their domestic partners and their partners  dependent children in the University s health insurance plans.

Because domestic partner benefits are not available under the health insurance plans of the State of Colorado, University classified employees who are currently enrolled in one of the State plans but who wish to receive domestic partner benefits under this proposal must first change their own enrollment to a health insurance plan offered by the University of Colorado.

The initial enrollment period for domestic partner coverage will be the fall 2001 open enrollment period or the earliest enrollment period thereafter.  If eligibility is established, coverage will become effective as of January 1 of the year following enrollment.

To establish enrollment eligibility under this proposal, University employees/retirees and their domestic partners will be required to submit either:  (1) a Certificate of Domestic Partnership from the City of Boulder, or  (2) a Certificate of Committed Partnership from the City and County of Denver.   Documentation, including copies of tax returns and court orders, may be required by the University to establish eligibility for coverage of the domestic partners  dependent children.

The insurance premium paid by the employee/retiree who enrolls a domestic partner and the partner s dependent children will be the same as that paid by the employee/retiree who enrolls a legal spouse and/or spouse s dependent children in the same plan.

The University will provide the standard employer contribution associated with the plan and coverage level selected by the employee/retiree.

According to current interpretation of the U.S. Internal Revenue Code, the portion of the health insurance coverage attributable to the domestic partner and the partner s dependent children may be subject to taxation.  In addition, the employee/retiree may not be permitted to use pre-tax income to pay the portion of insurance premiums attributable to the domestic partner and dependent children.

New participants in the University s health care plans as a result of this proposal will be subject to all other rules imposing limitations on health care coverage that are in place for 2002 and subsequent years.

 

ATTACHMENT B

UNIVERSITY OF COLORADO