News
Obama admin says insurers can’t discriminate against gay unions
Prohibits discrimination even in non-marriage equality states

The Centers for Medicare & Medicaid has issued guidance clarifying insurers can’t discriminate against same-sex couples. (Image public domain)
The Obama administration clarified on Friday that insurers are prohibited from discriminating against same-sex marriages for the purposes of non-grandfathered family coverage — even if applicants are applying in non-marriage equality states.
In guidance dated March 14, the Centers for Medicare & Medicaid says existing provisions in the health care reform law prohibiting discrimination by insurers on the basis of gender — which the Obama administration has interpreted to extend non-discrimination protections based on sexual orientation and gender identity — also requires insurers not to refuse family coverage for married same-sex couples.
The guidance is set up as Q&A. The question is “If a health insurance issuer in the group or individual market offers coverage of an opposite-sex spouse, may the issuer refuse to offer coverage of a same-sex spouse?” The response starts off simply, “No.”
“This section prohibits an issuer from choosing to decline to offer to a plan sponsor (or individual in the individual market) the option to cover same-sex spouses under the coverage on the same terms and conditions as opposite sex-spouses,” the guidance states.
Alicia Hartinger, a CMS spokesperson, said the guidance spells out that non-discrimination is the rule for insurers — both on and off the health insurance exchanges — when selling policies.
“CMS recognizes the importance of all Americans and their families having access to quality, affordable coverage,” Hartinger said. “Today’s guidance clarifies that issuers may not choose to treat same-sex spouses differently from opposite-sex spouses. If an issuer offers opposite-sex spouse coverage, it may not choose to deny the same coverage to a same-sex spouse. We will continue to work with states and issuers to help ensure all Americans have an equal opportunity to purchase the new coverage options available to them.”
The guidance says insurers cannot refuse family coverage to married same-sex couples even if they live in — or the insurance is sold in — a non-marriage equality state that doesn’t recognize those unions.
Additionally, the guidance acknowledges insurers may not have realized this prohibition when designing their policies for the 2014 coverage year. Accordingly, while encouraging immediate compliance, CMS says insurers need not begin adhering to this policy until Jan. 1, 2015. The guidance also directs states to begin enforcing the regulations no later than Jan. 1, 2015.
The guidance doesn’t address whether it requires CMS to provide coverage to same-sex couples in domestic partnerships or civil unions. A CMS official said the guidance applies only to marriages, not these other unions.
LGBT advocates praised the new guidance as a step toward ensuring that married same-sex couples have the same access to health insurance as their opposite-sex counterparts.
Rea Carey, executive director of the National Gay & Lesbian Task Force, earlier said her group wanted the Obama administration to make the clarification and upon news of the guidance said it would help same-sex couples “hurting right now” because they were denied health insurance.
“Today’s important HHS announcement will help remove this type of discrimination by requiring the health insurance industry to treat us the same as straight married couples — even if the states where we live do not recognize marriage equality,” Carey said. “While insurers are not required to be in compliance with the new rules until January 2015, we urge the industry to act now — as affordable health care delayed is affordable health care denied.”
There have been reported incidents of married gay couples being unable to receive family coverage in the aftermath of the implementation of the Affordable Care Act. In February, a gay couple — Alfred Cowger and Anthony Wesley of Gates Mills, Ohio — filed a federal lawsuit charging that they were unable to obtain family coverage because their state doesn’t recognize their marriage.
In January, Blue Cross and Blue Shield canceled family insurance policies it sold to same-sex couples under the Affordable Care Act in North Carolina. Following news reports about the cancellations, the insurer changed course and agreed to offer family coverage on the health insurance exchange to same-sex couples.
Kellan Baker, director of the LGBT State Exchanges Project for the Center for American Progress, said the new guidance is important because research shows LGBT families have trouble accessing health insurance.
“Research has shown that same-sex couples, as well as transgender people and other members of the lesbian, gay, bisexual, and transgender, or LGBT, communities, frequently face obstacles to affordable, comprehensive insurance coverage,” Baker said. “My colleagues and I look forward to working with HHS to ensure that this guidance is fully implemented in a timely manner and that similar action is taken to remove other barriers to coverage, such as discriminatory insurance exclusions that target transgender people.”
Rehoboth Beach
Auction of Rehoboth’s Blue Moon canceled
Details on sale of iconic bar, restaurant not disclosed
The Blue Moon in Rehoboth Beach, Del., has been an iconic presence in the local LGBTQ community for four decades but its status remains murky after a sheriff’s auction of the property was abruptly called off on Tuesday.
The property was listed for sale in December. At that time, owner Tim Ragan told the Blade that he is committed to preserving its legacy as a gay-friendly space.
“We had no idea the interest this would create,” Ragan said in December. “I guess I was a little naive about that.”
Ragan explained that he and longtime partner Randy Haney were separating the real estate from the business. The two buildings associated with the sale were listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They were listed for $4.5 million.
The bar and restaurant business is being sold separately; the price was not publicly disclosed.
But then, earlier this year, the Blue Moon real estate listing turned up on the Sussex County Sheriff’s Office auction site. The auction was slated for Tuesday, April 21 but hours before the sale, the listing changed to “active under contract” indicating that a buyer has been found but the sale is not yet final. As of Wednesday morning, the listing has been removed from the sheriff’s auction site.
Ragan didn’t respond to Blade inquiries about the auction. Back in December, he told the Blade, “It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” noting that he turns 70 this year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.”
The identity of the buyer was not disclosed, nor was the sale price.
Delaware
Delaware school district remains supportive after Trump attacks on trans students
Cape Henlopen has gender identity nondiscrimination policy
The Cape Henlopen School District in Delaware, one of five school districts in several states where the U.S. Department of Education earlier this month rescinded agreements protecting the rights of transgender students, says it will continue to provide a “safe and supportive learning environment” for all students.
In response to a request for comment, a spokesperson for the Cape Henlopen district sent the Washington Blade a short statement on its response to the federal Education Department’s action under orders from the Trump administration that ended what were called school district “resolution agreements” put in place under the administration of President Joe Biden.
Among other things, the federally initiated agreements required schools to train faculty on responding to a student’s preferred name and pronouns and to implement policies that allow transgender students to use bathrooms and locker rooms that align with their gender identity.
“The Cape Henlopen School District has received correspondence from the U.S. Department of Education’s Office of Civil Rights regarding the resolution agreement entered in March 2024,” the Cape Henlopen School District’s statement says. “As always, we are committed to providing a safe and supportive learning environment where all students can succeed,” it says.
“We will continue to work collaboratively to ensure our practices and programs support the well-being, growth, and achievement of every student in our District,” the statement concludes.
Although it did not respond specifically to the Trump-initiated action ending federal protections for trans students, a statement on the Cape Henlopen School District’s website says the district has a policy of non-discrimination based on a wide range of categories, including race, religion, creed, gender, and “sexual orientation or gender identity.”
The Trump administration’s latest action does not take away nondiscrimination policies put in place by school districts on their own.
The Cape Henlopen district is in Sussex County, a short distance from Rehoboth Beach, a Delaware resort town with many LGBTQ residents and summer visitors.
The other school districts for which the U.S. education department ended the trans nondiscrimination agreements include the Delaware Valley School District in Pennsylvania, Sacramento City Unified School District in California, Fife School District in Washington State, and La Mesa Spring Valley School District also in California.
Kimberly Richey, the Department of Education’s Assistant Secretary for Civil Rights, said in a statement that the decision to terminate the school agreements highlighted the Trump administration’s efforts to prevent trans students from participating in girls’ and women’s sports teams and accessing shared locker rooms.
“Today, the Trump administration is removing the unnecessary and unlawful burdens that prior administrations imposed on schools in its relentless pursuit of a radical transgender agenda,” she said in her statement.
Shiwali Patel, an official with the National Women’s Law Center, said in a statement that the action removing protections for trans students would negatively impact all students.
“There is absolutely no basis for what the Department of Education is doing, and it is unimaginably cruel,” she said. “Parents, teachers, and students need the Department to focus on addressing real harms on campuses instead of rolling back policies that keep all students safe.”
Virginia
Va. voters approve HRC-backed redistricting plan
10 of state’s 11 congressional districts now favor Democrats
Virginia voters on Tuesday narrowly approved a congressional redistricting plan ahead of the 2026 midterm elections.
The referendum passed by a 51-48 vote margin.
Virginia’s last Census happened in 2020. The next time maps would have been redrawn was intended for 2030, but the referendum results allow for redistricting to happen this year, while allowing the standard district procedures to resume after the 2030 Census.
Many congressional maps have been redrawn since the Trump-Vance administration took office, adding seats for both Republicans and Democrats. Ten of 11 of Virginia’s congressional districts will now favor Democrats.
The Human Rights Campaign PAC supported the referendum.
“Virginians made their voices heard today, rebuking Republicans’ attempts to stack the deck in their favor in the 2026 midterm elections and beyond,” said Human Rights Campaign PAC President Kelley Robinson in a statement. “This year, we’re going to take Congress back from the fringe extremists who have bent the knee to President Trump’s historically unpopular agenda at every turn.”
“Virginians just put anti-equality, anti-democracy, and anti-freedom lawmakers on notice — together, we are fighting for a future where every single American’s vote matters and where every elected official must earn their constituents’ trust,” she added.
