The Joliet City Council has approved a new health insurance plan for its non-union employees, a move expected to save the city $230,000 each year. This decision, made during Tuesday’s meeting, is the city’s first major step in tackling healthcare expenses that officials warn are becoming unsustainable. The changes are part of a larger strategy to control costs projected to skyrocket by 2030, when current union contracts expire.
Soaring Costs Force the Council’s Hand
Joliet Mayor Terry D’Arcy highlighted the seriousness of the situation, calling the city’s health insurance costs “almost unaffordable.” The financial pressure has been building for years, largely due to long-term union contracts established in 2016.
Since those agreements were locked in, the annual cost of the city’s health program has jumped from $22 million to $32 million. Without significant changes, financial projections show this figure could reach $42 million by 2030.
The council’s action aims to begin reversing this trend before it further strains the city’s budget. The table below illustrates the sharp rise in Joliet’s health insurance expenses.
| Year | Cost | Projection |
|---|---|---|
| 2016 | $22 million | N/A |
| 2024 | $32 million | N/A |
| 2030 | N/A | $42 million |
A Limited but Important First Step
The new insurance plan was approved with a strong 8-1 majority. However, its immediate impact is limited. The changes only apply to about 100 of Joliet’s 950 employees, specifically those who are not part of a union.
The majority of the city’s workforce, who are unionized, have their benefits secured by contracts that run until 2030. Any changes to their plans will require separate and future negotiations.
City Finance Director Kevin Sing emphasized the potential for much larger savings if the new plan is eventually adopted across the board. “If applied citywide, the new plan could save Joliet approximately $1.5 million annually,” Sing stated.
New Plan Emphasizes Preventative Care
A key feature of the updated insurance plan is its strong focus on preventative care, a change that has already received positive reactions. According to Sing, this aspect is appealing because it promotes long-term health and can lead to lower healthcare costs over time through wellness initiatives and early detection of health issues.
“We’ve seen a lot of good feedback on the new plan because of the preventative side,” he noted during the council meeting.
An earlier proposal to create a two-tier system, which would have made new non-union hires ineligible for retiree health insurance, was removed from the final package before the vote.
Dissent and a Daunting Financial Future
While the measure passed with broad support, it was not unanimous. Councilman Joe Clement was the lone dissenting vote, stating that he needed more time to review the details of the proposal. “I want to be part of the solution,” Clement said, agreeing with the need for reform but questioning the pace of the decision.
Despite this initial step, Joliet continues to face a significant financial challenge. The city is grappling with a staggering $700 million unfunded health insurance liability. This massive figure includes the future costs of coverage for both current employees and retirees, which is a major driver of the city’s long-term financial concerns.
City officials acknowledge that this vote is just the beginning. The next critical phase will involve entering into negotiations with union representatives to seek broader reforms and secure Joliet’s financial stability.
