Austin ISD insurance not covering domestic partnerships; district might revisit

Earlier this year, Austin ISD decided against extending employee insurance coverage to include domestic partnerships in the 2013–14 school year, but during the next few months, the district might revisit that decision for future school years, according to Michael Houser, AISD's chief human capital officer.

The district said in March that it planned to offer domestic partners coverage, but it then decided to maintain its current benefits practice until two related U.S. Supreme Court rulings were issued and the Texas Legislative session ended. External legal counsel advised AISD to wait until the rulings before making a final decision April 30, according to a letter to the district from Houser.

The Supreme Court on June 26 ruled that the Defense of Marriage Act, which prevented federal government recognition of same-sex marriages legalized by the states, is unconstitutional. That decision will result in federal benefits being extended to domestic partners. In a separate case related to California's Proposition 8, the court's ruling paved the way for legalized same-sex marriages in California and leaves other states to decide whether to allow same-sex marriages.

"Now that the Supreme Court rulings have been issued, and subject to extensive due diligence that must occur, it is possible that something may change over the next few months and allow the district to return to its original intent of offering domestic partnerships coverage," Houser said in the letter.

To finalize its benefits plan, set 2013–14 insurance rates and follow district procedure by communicating information to employees two months before open enrollment starts July 1, AISD had to decide by April 30 whether to extend coverage to domestic partnerships, Houser said.

In late April, Texas Attorney General Greg Abbott said a school district would violate state law if its health plan recognized a legal status that is similar to marriage. House Bill 1568 was also filed in the 83rd Texas Legislative Session, aiming to reduce funds for school districts offering insurance benefits to domestic partnerships and would have cost the district about $22 million if approved, Houser said. On April 26, the House Public Education Committee filed a favorable report about the bill and sent that report to a calendars committee to schedule consideration by the full House.

Houser said that based on the advice of legal counsel, AISD believed it had no choice but to maintain its current benefits practice until the rulings and the Texas Legislative session were complete.

Houser said AISD will continue discussions and consultation with the district's joint insurance committee and employee association representatives.