Bill Ends Tax Inequities On Health Benefits For Same-Sex Couples

In a statement, the coalition noted that "employers across the U.S. in increasing numbers have made their business to provide health benefits to the domestic partners of their employees."

Both Brittain and a coalition letter to the co-sponsors said that as of this month, 266 of the Fortune 500 companies are offering domestic partner coverage, which represents a 12-fold increase since 1995.

"These employers have recognized that the provision of domestic partner health coverage is an essential component of a comprehensive benefits package," the letter said.

In his comments, Smith said the legislation could pass Congress as a stand-alone bill, but will more likely be part of omnibus health insurance legislation now being drafted by the Senate Finance Committee.

For example, the panel hopes to hold a markup very soon on bipartisan legislation that would extend the State Children's Health Insurance Program and increase funding for it. A key decision that has tentatively been made is to pay for the increase in funding of $50 billion over 10 years by increasing the cigarette tax.

Besides Senate Finance Committee members, Sen. Ted Kennedy, D-Mass., and Sen. Orrin Hatch, R-Utah, are involved in the talks, say congressional staffers.