U. Florida health insurance plan unequal for gays

By Alex Tiegen

GAINESVILLE, Fla. - When Nora Spencer heard a year ago that the University of Florida would offer health insurance benefits to partners of gay and lesbian employees, she and her partner thought it was wonderful.

But when the former adjunct professor became eligible for the benefits as the director of Lesbian, Gay, Bisexual and Transgender Affairs in August, she realized the plan came with a heavy cost. The plan would give her extra taxable income of at least $5,000, which is why she decided not to use it.

“I just looked at it, and it doesn’t make any sense,” Spencer said.

Almost a year after the university first offered domestic partner benefits, the plan is meeting mixed reception from faculty. While it is seen as a step forward in gay and lesbian rights, those who benefit from the plan said it is not equal to the spouse plan for heterosexual couples and, most importantly, not enough.

Kyle Cavanaugh, vice president for human resources, said 40 faculty members have enrolled in the plan since it was adopted last February. After much debate, UF was the first public university in Florida to adopt the plan.

Though Cavanaugh considers the plan to be a success, he said the taxable income has been a “challenge.”

Under the domestic partner plan, provided by AvMED, employees and their partners pay $90 and the university contributes $445.

The problem, said Cavanaugh, is that the Internal Revenue Service requires that the money UF pays for domestic partners health insurance be treated as “taxable wages” — or extra income. Of the $890 the university pays a month, $466 — more than half — is treated as taxable income. So even though the money never reaches the hands of the employees, they could be taxed for an extra $5,600 a year.

“It’s like a gift, only it isn’t,” Spencer said. Cavanaugh said employees are surprised to learn more about the plan’s “taxable wages.” Because of this “challenge,” the human resources department had to readjust its management system, Cavanaugh said.

They now meet with employees in person to explain the plan benefits.

Linda Lamme, chairwoman of UF’s LGBT Concerns Committee, has worked on getting domestic partner insurance for about 10 years. She praised President Bernie Machen for making the plan a priority but said the plan had inequities.

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