Insurance cost increases put more pressure on Kane Co. budget

One of the main reasons Kane County is bracing for an even tighter 2010 budget is the expectation of using dwindling tax dollars to pay for a higher health insurance bill for county employees and board members.

The Human Services Committee learned Wednesday insurance will increase $1.4 million if it maintains the current plan. The total price tag would increase 9.7 percent to $15.7 million. The county anticipated an increase between 13.1 percent and 25.2 percent before its new insurance broker negotiated better terms.

Brokers told the county one reason its costs are high are because the number of claims filed are 25 percent more than the rest of just about all government agencies in the Midwest the last three years. The county has one employee who has had $1 million in claims the last two years.

Despite the good news of a lower-than-expected increase, a $1.4 million increase might be too much for the county to bear.

"We need to start looking at plan design quickly," county board member Jesse Vazquez said. "I mean, do you have another $1.4 million in your budget?"

The county will consider how to cut insurance costs. The options include ending insurance coverage for vision needs, which employees currently get for free; increasing employee insurance premiums; or, as Vazquez suggested, reworking the entire insurance plan design.