The Supreme Court decision overturning state bans on same-sex marriage will have implications for the employer-based benefits system. The 5-4 decision in Obergefell v. Hodges determined that marriage, regardless of sexual orientation, is a fundamental right under the Constitution's Equal Protection Clause and states do not have a right to deny marriage to same-sex unions. Prior to the decision, same-sex marriage had been legalized in 37 states.  

The most important thing about the ruling for BDR client's to understand is that now there will be standardization across the country for how employers treat employees for spousal benefits. Previously, employers had to navigate a complicated patchwork of laws across states to determine whether benefits would need to be extended to same-sex spouses. The ruling, which is effective immediately, will help to clear up some of the confusion for employers uncertain of whether they legally need to offer coverage to same-sex spouses. It will also help to clear up confusing plan administration for some domestic partnership couples who could now become legal spouses.

A Kaiser Family Foundation survey last year found that while nearly all employers offered coverage to spouses, only half allowed same-sex partners to claim insurance benefits if they weren't legally married. The ruling could lead to some employers dropping coverage for domestic partnerships and instead only offering to legally wed spouses.

The Supreme Court ruling will also force changes for Medicaid and the health insurance marketplaces. The 2013 ruling that struck down the Defense of Marriage Act led CMS to encourage states to recognize same-sex marriages performed in another state when the state the couple resides does not recognize same-sex marriage, leading to a gray area in how benefits would be applied. This ruling will require all states' Medicaid programs to recognize all legally wed spouses. The decision will also impact same-sex households applying for tax credits on the exchanges, where they may previously have been treated as individuals but can now apply as a married couple.

Source: National Association of Health Underwriters

The law requires all insurance carriers to supply the IRS with key information on each covered individual. This information includes, but is not limited to name, social security number (SSN) or taxpayer identification number (TIN) and the months in which a member had coverage. In addition, each plan subscriber must be sent a form 10956-B statement reflecting medical coverage held for themselves and their dependents, which will be used when filing their 2015 tax return. Employers do not have reporting responsibilities for the 1095-B if they are fully insured. (Different rules for self-insured groups). The carriers will be sending this information to the IRS.

For more information on these new requirements, you may visit the IRS website at  www.irs.gov/Affordable-Care-Act.