The Joliet City Council has taken its first step in addressing escalating health insurance costs by approving a measure expected to save $230,000 annually. The decision, which applies exclusively to non-union employees, marks the beginning of a broader effort to rein in expenses projected to hit unsustainable levels by the end of the decade.
Rising Costs Spur Action
Joliet Mayor Terry D’Arcy underscored the urgency of the issue during Tuesday’s meeting, describing the city’s health insurance costs as “almost unaffordable.”
In 2016, union contracts locked in health insurance coverage for 14 years. Since then, the cost of the program has ballooned from $22 million to $32 million annually. Without changes, projections suggest this figure could soar to $42 million by 2030, the year the current agreement expires.
The council approved the new insurance plan in an 8-1 vote, with the lone dissenter, Councilman Joe Clement, calling for more time to review the proposal.
Limited Scope for Now
The approved changes currently affect only about 100 of the city’s 950 employees—those who are not part of a union. Unionized employees, whose benefits are locked in by existing contracts, will require separate negotiations to adopt the new plan.
City Finance Director Kevin Sing highlighted the potential for broader savings if union employees also transition to the updated plan. “If applied citywide, the new plan could save Joliet approximately $1.5 million annually,” Sing told the council.
Preventative Coverage Offers Appeal
One of the key features of the revised plan is an emphasis on preventative care. This has already garnered positive feedback, according to Sing, who pointed out the potential long-term benefits of reduced healthcare costs through early intervention and wellness initiatives.
“We’ve seen a lot of good feedback on the new plan because of the preventative side,” Sing said.
The city originally proposed a two-tier system that would have excluded new non-union hires from retiree health insurance eligibility. However, this proposal was dropped from the final package approved by the council.
Unfunded Liabilities Loom Large
While the current changes represent progress, Joliet still faces a daunting $700 million unfunded health insurance liability. This figure reflects not only the cost of coverage for active employees but also for retirees, a significant driver of the city’s financial challenges.
City officials acknowledged the scale of the problem and emphasized the importance of negotiating changes with unions in the coming year.
Table: Joliet’s Health Insurance Costs Over Time
| Year | Cost | Projection |
|---|---|---|
| 2016 | $22 million | N/A |
| 2024 | $32 million | N/A |
| 2030 | N/A | $42 million |
Mixed Reactions from the Council
While most council members supported the changes, Clement expressed concerns about the process. “I want to be part of the solution,” he said, emphasizing his agreement with the need for reform but calling for additional time to scrutinize the proposal.
With negotiations set to begin with union representatives, city officials hope this initial step will pave the way for broader reforms, ensuring Joliet can maintain sustainable healthcare benefits without overburdening its finances.
