State Corrections Sgt. Rachael Merry was looking forward to signing her partner and the womanâ??s daughter up for health insurance under a new provision for state workers that takes effect Friday. But the modest premiums and the significant federal taxes on the domestic partner benefit appear to make insuring the pair more expensive than Merry anticipated — as much as $4,500 a year, sheâ??s estimated.
“We thought, â??Now we can finally get family insurance like the rest of my married co-workers and be good to go,â??” Merry said. “But this benefit came with a great deal of cost.”
Federal law treats the additional health insurance benefit for partners and a partnerâ??s children as income, requiring any state worker who participates to pay taxes on it.