Elgin gives workers 1,000 more reasons to skip health insurance

Elgin leaders are taking steps to reduce how much the city pays for its employees' health insurance.

City council members this week increased from $2,000 to $3,000 an individual waiver program that entices employees not to accept coverage if they have other options, such as through a spouse.

The move is the latest instance in which city leaders hope to cut costs as the economy worsens and revenues from sales taxes and other sources decrease.

But city officials could not pinpoint or estimate how much this move would save the city.

"It's hard to tell how many employees will opt out," City Manager Femi Folarin said. So far, 51 employees want to opt out of the city's insurance, meaning the waiver program will cost at least $153,000, up $51,000 from the previous year.

But with premiums costing the city as much as $15,000 a year for workers who opt for the best coverage, the city expects to save even while shelling out extra incentives.

"We only need to add four of five more employees (to opt out) to get our money back," Councilman David Kaptain said.

Gail Cohen, the city's human resources director, said the city first began the waiver program in 2005 when it began charging employees for health coverage. Before that the city paid 100 percent of health care premiums.

The $3,000 incentive will be entered into a health retirement account that rolls over each year and can be used for health expenses.

The city expects its savings will extend beyond just the 51 or more employees who opt out.

"Our claims history obviously impacts our premiums for following years," Cohen said. "It's a win-win. The city definitely saves more than the cost of the (individual) premium. It's a good program. I'm glad we offer it."