Blue Cross & Blue Shield of Western New York announced on Monday that it would immediately begin offering spousal health insurance benefits to same-sex couples that have been legally married.
The change in policy comes three weeks after the New York Civil Liberties Union filed a lawsuit against the Buffalo-based health insurance carrier on behalf of a Cheektowaga Central School District employee and her same-sex spouse.
Jeanne Kornowicz, a school psychologist, applied for spousal health insurance with the permission of her employer, but was denied by Blue Cross.
NYCLU sued the company, citing a recent victory by an appeals court that unanimously ruled that New York State must recognize the valid out-of-state marriages of gay and lesbian couples.
Kornowicz and her partner, Joy Higgins, were legally married in Ontario, Canada in 2006. Higgins gave birth to the couple's daughter, Elizabeth Higgins, in July, 2007. Kornowicz legally adopted Elizabeth in January of this year.
"As spouses and parents, Jeanne and Joy deserve the same protections that every other family in New York State enjoys," said NYCLU attorney Matt Faiella. "We're so relieved for their family that they will finally know some piece of mind."
In a statement from Blue Cross, spokeswoman Karen Merkel-Liberatore said, "While this situation brought to light an outdated police that no longer met the needs of our customers, it also presented an opportunity to more more responsive and showed the company ways that, despite being in a highly-regulated industry, we can be more progressive in taking action to please our customers."
Gay and lesbian rights advocates call the decision by Blue Cross, a major victory.
"If one company can change this police, then all company's should," said Bryan Whitley-Grassi, executive director of Pride Center of Western New York.
Many large companies offer domestic partner benefits through their health insurance coverage. Whitely-Grassi said these are not the same benefits offered to married couples.
"Domestic partner benefits are not only lesser benefits," he said. "But you're taxed on the income before spending it on your partner's health care."
Health care benefits for individuals, spouses and families are tax-deductible.
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