Fully-Insured Benefit Plans in NY Must Recognize Out-of-State Same-Gender Marriages

Article from Proskauer Rose LLP: Fully-Insured Benefit Plans in New York Must Recognize Out-of-State Same-[Gender] Marriages. Excerpt: The New York State Insurance Department issued a Circular Letter on November 21, 2008 (the “Circular Letter”) stating that it expects all New…

Article from Proskauer Rose LLP: Fully-Insured Benefit Plans in New York Must Recognize Out-of-State Same-[Gender] Marriages. Excerpt:

The New York State Insurance Department issued a Circular Letter on November 21, 2008 (the “Circular Letter”) stating that it expects all New York insurers to recognize the marriages of same-[gender] couples legally performed in other jurisdictions for purposes of providing the same level of insurance coverage as is provided to opposite-[gender] spouses.

Also:

In general, the Employment Retirement Income Security Act of 1974, as amended (“ERISA”) preempts state laws that relate to employee benefit plans. However, state insurance laws are excepted from ERISA’s broad preemption provision. Accordingly, it seems clear that the Insurance Department’s pronouncement would apply to employee benefit plans that are provided under insurance policies issued in New York because the insurance companies will have to recognize same-[gender] spouses under their policies. Employers (and other plan sponsors) that provide insured benefits will therefore be required to offer the same benefits to both same-[gender] spouses and opposite-[gender] spouses.

Self-insured plans would be exempt from the requirement per the “deemer clause” of ERISA.

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