My question involves insurance law for the state of: Mass
My DP took out health insurance for us as a family. We have lived together for 7 yrs, but are NOT same sex.
I have 2 kids covered in family plan.
Cost of policy was as follows: 50 for him as employee, 50 for me, and 60 more for kids to get family policy. This amount is deducted from his paycheck every 2 weeks x 24 pay periods.
Total cost was 50 every 2 wks for him, I paid the 110 every 2 wks for my family.
We noticed the dedcution, but the tax from mainly federal gov went up by 140 per pay period. In essence this crazy plan is costing us double what we thought. It is 110 per pay period for me and kids, and another 160 is being deducted by taxes.
When he asked his benefits coordinator, they explained that his portion is tax free, but the family part is not since we are not married.
Does this make any sense to anyone? I can't understand it, because I don't see how my health insurance, married or not could be taxed at over 100 percent rate. Do we get anything back?
He is still in process of investigating why and how it came to this. His benefits coordinator is very weak and unknowledgeable.
I am just wondering if this is legal, and possible. Would we get a lot back in tax?
Had we known, I prob would have not taken out this health insurance. I work part time and have it offered by my company, but it is just as expensive as his when you figure the tax implication.
Would appreciate any advice or insight.