Domestic Partnership 

May I elect coverage for a domestic partner in any public school district in Vermont starting in 2024?

Yes. There are requirements to qualify for domestic partnership coverage.  To learn more about them, please contact HR@windhamcentral.org. 

The IRS has special rules on the reimbursement of qualified expenses for domestic partners through an employee’s Health Saving Account (HSA).  Please click here for more information on HSAs on this issue and other eligibility matters.

Domestic Partnerships & Eligibility for HSA Contributions 

1) Can an employee use HSA funds to pay for the qualified medical expenses of domestic partners? 

(a) Typically, domestic partners are not considered tax dependents by the IRS. Individuals may use their Health Savings Accounts to pay qualified medical expenses only for tax dependents (which includes their spouse, themselves, and children who qualify). 

(b) If, however, a domestic partner meets the definition of a “qualifying relative,” HSA funds can be used to pay for the qualified medical expenses of the domestic partner. To be a “qualifying relative,” four tests must be satisfied. The most relevant for most employees is the “gross income” test. More details on these four tests can be found at: https://www.irs.gov/publications/p17/ch03.html. We also recommend you consult with your school district’s Third Party Administrator for guidance. 

(c) If the domestic partner is not a “qualifying relative,” the employee cannot use HSA funds to pay for the domestic partner’s qualified medical expenses. The domestic partner can still be covered by the employee’s HSA-qualified health plan and is eligible to open a personal HSA account and fund the account up to the maximum family contribution. For more information, click on: https://www.irs.gov/uac/answers-to-frequently-asked-questionsfor-registered-domestic-partners-and-individuals-in-civil-unions, or consult with your school district’s Third Party Administrator.