SPRINGFIELD — — Retired state workers would have to pick up more of the costs of their health insurance under a contentious plan the Illinois House approved Wednesday.
The goal is to reduce the more than $800 million a year that state government spends on a program that sees thousands of retirees now get coverage for little or nothing.
Democratic House Speaker Michael Madigan of Chicago and House Republican leader Tom Cross of Oswego implored colleagues to make the measure part of an effort to save billions of dollars by cutting health care for the poor, reforming public employee pensions and making trims to the state budget.
"The prescription on the table is huge," Madigan said. "This is one small part of it. … If we can't do this, what in the world are we going to be able to do?"
Under the legislation, Gov.Pat Quinn'sadministration would set premiums for group health insurance programs for retired state workers, judges, lawmakers and university employees. The bill went to the Senate on a 74-43 vote.
Madigan said the upcoming decisions needed to close the budget gap are "not for the faint of heart." The General Assembly is scheduled to adjourn for the spring May 31.
Cross sought to allay concerns by pointing to safeguards the Quinn administration plans. Retiree contributions for health care would be determined on a sliding scale and consider length of service and ability to pay.
The percentage of health care costs the retiree would pay also would be based on pension level, according to a Quinn administration letter. Pension amounts would be broken into seven tiers. The higher the tier, the more the retiree will pay. The cost increase isn't expected to be as significant for retirees on Medicare, but no one is expected to pay less than he or she is paying now, the letter said.
Opponents of the measure contended the proposal would break the promises made to rank-and-file workers who retired under the belief their health care would be covered. But supporters countered that the program's cost is unaffordable given Quinn's call to cut state spending dramatically.
The program is expected to cost $7,388 per participant, or $876 million, in the budget year that starts July 1, a Cross aide said. Currently, 78,000 retirees pay no premium and 7,400 pay a portion of their premiums. In addition, 36,000 dependents are enrolled on a retiree's plan, but the premium does not cover the true cost of the health care benefit, the Cross aide said.
Madigan maintained that the state sometimes needs to be able to say no.
In other action, the Senate voted down a bill that would have provided a method for lawmakers to make recommendations of a joint House-Senate commission binding on matters of when state facilities should be closed or left open. The move comes as Quinn seeks to close several prisons and social service sites around Illinois in a cost-saving move.
The goal is to reduce the more than $800 million a year that state government spends on a program that sees thousands of retirees now get coverage for little or nothing.
Democratic House Speaker Michael Madigan of Chicago and House Republican leader Tom Cross of Oswego implored colleagues to make the measure part of an effort to save billions of dollars by cutting health care for the poor, reforming public employee pensions and making trims to the state budget.
"The prescription on the table is huge," Madigan said. "This is one small part of it. … If we can't do this, what in the world are we going to be able to do?"
Under the legislation, Gov.Pat Quinn'sadministration would set premiums for group health insurance programs for retired state workers, judges, lawmakers and university employees. The bill went to the Senate on a 74-43 vote.
Madigan said the upcoming decisions needed to close the budget gap are "not for the faint of heart." The General Assembly is scheduled to adjourn for the spring May 31.
Cross sought to allay concerns by pointing to safeguards the Quinn administration plans. Retiree contributions for health care would be determined on a sliding scale and consider length of service and ability to pay.
The percentage of health care costs the retiree would pay also would be based on pension level, according to a Quinn administration letter. Pension amounts would be broken into seven tiers. The higher the tier, the more the retiree will pay. The cost increase isn't expected to be as significant for retirees on Medicare, but no one is expected to pay less than he or she is paying now, the letter said.
Opponents of the measure contended the proposal would break the promises made to rank-and-file workers who retired under the belief their health care would be covered. But supporters countered that the program's cost is unaffordable given Quinn's call to cut state spending dramatically.
The program is expected to cost $7,388 per participant, or $876 million, in the budget year that starts July 1, a Cross aide said. Currently, 78,000 retirees pay no premium and 7,400 pay a portion of their premiums. In addition, 36,000 dependents are enrolled on a retiree's plan, but the premium does not cover the true cost of the health care benefit, the Cross aide said.
Madigan maintained that the state sometimes needs to be able to say no.
In other action, the Senate voted down a bill that would have provided a method for lawmakers to make recommendations of a joint House-Senate commission binding on matters of when state facilities should be closed or left open. The move comes as Quinn seeks to close several prisons and social service sites around Illinois in a cost-saving move.