Approval granted by Joliet Council Tuesday will mean non-union employees will receive preventative care benefits in their plan.

Mayor Terry D’Arcy said the initial healthcare contract approved in 2016 with union employees is not set to expire until 2030. He described that coverage as a “Rolls Royce plan.” Union employees at that time took a two-year pay freeze in exchange for the 14-year healthcare plan.

“When this contract was put in, it cost the City of Joliet $22 million,” he said. “Now, it is $32 million.”

By 2030, D’Arcy expects the cost to skyrocket to $43 million.

The proposed changes would only affect non-union employees, non-union retirees, and the mayor and City Council members who have elected to take city insurance.

Union employees, however, are covered by a current collective bargaining agreement that runs through 2030, and any changes to their coverage will need to be negotiated.

Councilman-at-large Joe Clement Tuesday voted against the changes to the city ordinance that provides fringe benefits, including insurance coverage, for employees and retirees because he felt the proposal was too rushed for consideration.

The changes were put forward by Finance Director Kevin Sing, who told the council that he aims to reduce the city’s long-term unfunded insurance liability, which is currently estimated at $700 million. Additionally, the existing healthcare benefits, according to Sing, are outdated and do not reflect the provisions of the Affordable Care Act (ACA) of 2010.

“A group of us has studied this insurance issue for the past six months, and after much deliberation and consultation with industry professionals, we believe these changes will help lower healthcare costs for the city while also incentivizing employees and retirees to adopt healthier lifestyles,” explained Sing.

Under the current plan, preventive care check-ups and screenings are not covered, and employees are disincentivized from seeking lower-cost healthcare options, he said.

“The current plan steers employees toward higher-cost healthcare when making medical decisions,” Sing said. “The current plan doesn’t even cover women’s health items such as mammograms, pap smears, and birth control. We are working to change that.”

The new plan would cover preventive care at 100 percent and would offer coverage for popular weight-loss medications that are currently not covered. Additionally, a second tier of coverage would be introduced for employees hired after Jan. 1, 2025. These new hires would be classified as Tier 2 employees, which would lead to increased savings for the city by reducing the number of retirees receiving coverage, Sing said. Current employees hired before Jan. 1, 2025, would still be eligible for retiree health insurance.

Council member-at-large Jan Quillman said the city will realize long-term cost savings because of preventative care.

“With the new policy, women can get their yearly mammograms and Pap smears,” she said. Under the old plan, according to Quillman, women had to experience a problem like a lump in their breast before a mammogram was allowed.

“Preventative care is the way to go,” she added.

City Manager Beth Beatty also supported the proposal, emphasizing that the city cannot afford to ignore the growing unfunded liability.

“Many in the industry have already made these adjustments. If the city had addressed this issue 20 years ago, the city’s healthcare costs would be roughly $16 million a year, not the $32 million a year we are facing today,” said Beatty.

“As insurance costs continue to rise, the city’s ability to hire and retain staff, plan for capital projects, repair roads, and provide essential services to residents will be severely impacted if funds are continually drained by healthcare expenses.”

Sing estimates the annual savings at approximately $230,000 for the non-union workforce, but believes that by updating the current plan, the city could achieve even greater savings in the future.   Madhu Mayer is a reporter for the Times Weekly.