Kane County looks to push employees to HMO as insurance costs rise

Kane County government and its employees will take a financial hit through increased health insurance costs unless the county can lure workers into cheaper programs.

Right now 740 of the county's 1,228 employees choose the PPO option for their health insurance through the county. That program is much more costly to the county itself than when employees choose HMO options.

For instance, if all 740 employees currently in the PPO program maintained their current coverage, the county and its taxpayers will be hit with about $1.06 million more in health care expenses this coming year.

That contrasts with the second most popular insurance option with employees, the Blue Advantage HMO, with 266 employees participating. If all those employees stayed in that program, the county would save about $78,000 in costs next year. In other words, the more employees lured into the HMO, the less that $1.06 million impact will be.

HMOs are typically more restrictive than PPO programs, particularly in which doctors participants can see. But the county passed a resolution last year resulting in an out-of-pocket cost difference that may make moving to the HMO an irresistible option for employees.

Out-of-pocket employee heath care expenses will increase by about $59 a month for employees with family coverage in the PPO program. Meanwhile, in the HMO Blue Advantage Program, costs will only increase $7.66 a month for an employee choosing coverage for herself and two family members.

The difference in the increases is at least partially attributable to county mandating that the overall employee contribution rate into the program to be 15 percent for the first time. To achieve that, and usher employees into the HMOs, employees in the PPO will contribute at an average rate of 17.4 percent. Meanwhile, employees in the HMO Blue Advantage will only contribute an average of 6.1 percent.

The Human Services Committee approved the plan Friday, but complained about not fully comprehending the changes. However, not approving the plan meant a delay that would result in no insurance coverage at all.

"It's just asking us not to be responsible," Board Member Deborah Allen said. "It gives us the choice of cutting off our insurance or not getting our arms around it."

The plan moves to the Executive Committee for another vote.