Plan to charge state retirees for health insurance heads to Gov. Quinn's desk - Chicago Sun-Times

SPRINGFIELD — The Illinois Senate followed the House and overwhelmingly approved a plan Thursday to begin charging retired state workers, lawmakers, judges and university workers for their health insurance.

The Senate's 31-20 vote, with one voting present, now sends the issue to Gov. Pat Quinn, who is expected to sign it because he has called for $300 million in cuts to ballooning state-subsidized, retiree health care costs.

"If we don't act now, current retirees and those who will be retiring in the future will be unquestionably faced with higher co-payments and a severe reduction of benefits," said state Sen. Jeff Schoenberg (D-Evanston). "Our current approach to this issue is simply unaffordable and unsustainable."

The move affects 78,000 retirees and takes aim at an $876 million program that could climb to more than $1 billion in a year, placing enormous pressure on a state budget already pinched by growing Medicaid and pension costs.

Under the plan, the director of the state Department of Central Management Services would set premiums for retiree health care, and a legislative panel — the Joint Committee on Administrative Rules — would have veto authority.

During floor debate Thursday, questions surfaced about the legislation's constitutionality since it takes aim at current retirees, many of whom left the state payroll with the belief they wouldn't face premiums for their individual health care.

"I don't disagree we need to do something about health care and the cost, but prospective," said state Sen. Larry Bomke (R-Springfield), whose district takes in major concentration of state workers.

"If we were talking about employees hired today and for the future, I'd agree it would be constitutional. But it seems to be it's clearly not," he said. "To vote yes on this simply means we'll have a court challenge. We'll spend millions of dollars we don't have to defend it only to realize it's not constitutional."

But Bomke's caucus leader, Senate Minority Leader Christine Radogno (R-Lemont), said she feels compassion for retirees affected by the hit, but reeling in the program is vital to the state's long-term financial health.

"In fact we're changing the benefit we will receive in our own retirement. But having said that, things happen in life, and we have to adjust. It happens in the private sector, and it's happening here," she said.

"We're only one of two states that offer anything like this in terms of health insurance, and we simply cannot afford it," she said.

11 May, 2012

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