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While a newly released survey suggests that a sizeable number of companies are giving serious thought to spousal benefits for same-gender spouses, insurers say that newly married gay couples already can buy the same policies that straight couples do.
The issue has come to the fore in light of a decision in the Massachusetts court case, Goodridge et al. v. Department of Public Health, initiated by seven lesbian and gay couples in Massachusetts who sued the department for the right to marry. In Massachusetts, the department oversees the issuance of marriage licenses.
Calls to major insurers including John Hancock Life Insurance Co., Massachusetts Mutual Life Insurance Co., New York Life Insurance Co., Prudential Financial, Savings Bank Life Insurance Co. and Sun Life Assurance Co. of Canada, indicate that a change in state law permitting gay couples to marry in Massachusetts will not affect the way they do business. Responses from representatives for these companies suggest that insurers are trying to get a sense of the change, may consider new products and for the time being will offer existing products to any spouse that is insurable.
Philip Salis, a vice president of marketing with MetLife Inc., New York, says that his company decided to target the gay community at the end of 2002, long before the Massachusetts court decision allowing gay couples to marry.
Currently MetLife has 100 reps who reach out to the gay community. They offer educational seminars and materials describing how existing products can be structured to meet the special tax and estate planning needs of the gay community including gay couples.
Salis says that the reps are all over the country and actually participate in monthly conference calls to learn how they can better serve the gay community.
Products and marketing already reach out to the gay community and will not change because of a change in the law, says Len Scholl, assistant vice president-individual and small business with the U.S. operation of Sun Life in Wellesley Hills, Mass.
As long as there is an insurable interest, Sun Life will continue to provide insurance to the gay community, Alice La Vigne, vice president-underwriting and business, says. The underwriting department looks beyond state and federal tax differences and focuses on insurable interest, she adds.
For insurers serving the business community, a survey just released by AON Consulting, Chicago, suggests that companies already are pondering the issue.
Responses from 216 companies received in mid-June indicated that when asked whether a request to recognize a same-gender spouse on an employees health benefit plan would be recognized, 32.6% of companies said yes; 39.5%, no; and, 27.9% said that they did not know.
Also, 43% of respondents said that they would need to amend their health plans to clarify whether spousal coverage will include same-gender spouses; 33.2% answered negatively; and 23.8% said that they did not know.