Financial Effects of Domestic Partner Benefits on State of Arizona

Publication Date: February 2007

Publisher:

Author(s): M.V. Lee Badgett; Danielle MacCartney

Research Area: Economics; Labor

Type: Report

Coverage: Arizona

Abstract:

Providing domestic partner benefits to State of Arizona employees' domestic partners will have several financial effects on the state. The possibility of cost increases is usually high on the list of employer concerns about partner benefits, although a great deal of evidence suggests that cost increases will be small. However, just as important are the benefits that the State of Arizona will see if state employees can cover a domestic partner, and those benefits will offset some of the costs of coverage. Based on our own research and a review of research of other academics, we conclude that the State of Arizona will see the following effects from offering benefits to state employees' same-sex or different-sex domestic partners: 1. Spending related to Medicaid and uncompensated health care for uninsured people is likely to fall. 2. Current employees will be healthier, more satisfied, and less likely to leave their jobs. 3. Domestic partner benefits will increase the ability of public employers to recruit talented and committed employees. 4. In addition to the benefits, health care costs would increase by a small amount.