The Montana Supreme Court ruled in December that the university system's current health insurance policy, which allows unmarried heterosexual couples to receive benefits, violates the equal protection clause of the state constitution since it doesn't afford gays and lesbians the same benefits.
Cathy Swift, attorney for the office of the commissioner of higher education, will develop health insurance policy options for the regents to consider at their March meeting.
While the university system pays for the full cost of its employees' insurance, employees must fully pay for coverage of spouses and dependents.
Commissioner of Higher Education Sheila Stearns said it's more likely that the university system will open its policy to include gays and lesbians, rather than restrict it to heterosexuals who are legally married. A constitutional ban on gay marriage in Montana, as well as a state "Defense of Marriage Act," prevent gays and lesbians from marrying here.
The current university policy, which allows people to sign an affidavit of common-law marriage for the purpose of attaining health insurance benefits, has been suspended until the problem is solved.
"I think our policy will broaden," Stearns said. "That's the more likely of the two scenarios."
Former University of Montana employees Carol Snetsinger and Carla Grayson and Montana PRIDE Inc. sued the university system in District Court in 2002 after their lesbian partners were denied health insurance benefits by the university system.
Days after filing the suit, the Missoula home Grayson shared with her partner, Adrienne Neff, and their child was destroyed by a suspicious fire. The case was never solved, and the women have since moved to Michigan.
Snetsinger, who worked in the biology department at the University of Montana when she filed the suit, still lives in Missoula with her partner, Nancy Siegel. District Court Judge Thomas Honzel of Helena dismissed their case in 2002, and the American Civil Liberties Union appealed on behalf of the two couples in March 2003.
Last month's Supreme Court decision hinged on the discrimination inherent in the university system's benefits policy.
"The Supreme Court found that you can't treat a same-sex couple different than a heterosexual couple," Swift told the regents.
The university system has not removed anyone from the health plan since the Supreme Court ruled, and officials said they hope to have the issue resolved by April 1, when open enrollment in the health plan begins. Swift said she is still gathering data from the campuses as she prepares her list of options.
Regent Lynn Hamilton of Havre said expanding the policy to include gays and lesbians could boost the university system's ability to recruit and retain employees. She said she's been surprised to discover that many large corporations do offer partner benefits to their employees.
Mercer, however, is calling the debate an "insurance question." He said it could make sense to allow more people into the self-funded health insurance pool, since a larger pool tends to be more stable.
"If they're willing to pay for insurance, then we're willing to provide it," he said.
The regents are expected to settle on a new policy in March.
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