Illinois taxpayers subsidize 77 percent of health care costs for current workers, and 100 percent of retiree health insurance who have worked for the state 20 years.
CHICAGO (June 21, 2016) – Illinois Gov. Bruce Rauner has been negotiating for more than a year with the American Federation of State, County and Municipal Employees, a government union that represents more than 35,000 state workers in Illinois. Proposed changes in government-worker health care benefits are a major sticking point in contract talks. A new report released today by the nonpartisan Illinois Policy Institute takes a look at these benefits.
The average, annual health care cost for a state worker is $19,331, and taxpayers pick up 77 percent of that cost, the report found. State workers spend, on average, $1,548 on out-of-pocket costs and pay $2,904 toward health insurance premiums.
In addition to heavily-subsidized healthcare, state workers who have been on the job for at least 20 years also receive free health insurance during retirement. Taxpayers pay 100 percent of this cost. Free retiree health insurance is almost unheard of in the private sector. The cash value for this benefit ranges from $200,000 to $500,000 per state retiree, the report found. This health care coverage is in addition to Medicare.
“Illinoisans are facing mounting health care costs for themselves, and can’t afford to keep subsidizing Cadillac health care plans for state workers,” said Ted Dabrowski, vice president of policy at the Illinois Policy Institute. “State workers are the highest paid in the nation when compared to their peers. The vast majority of state workers get free health insurance when they retire, along with an average pension of $1.6 million plus Social Security. Illinois and its residents are in a financial crisis and it’s time to bring these costs in line with what taxpayers can afford.”
Highlights from the report:
- Illinois taxpayers subsidize 77 percent of government workers’ Cadillac health care coverage.
- The average employee of state government pays a total of $4,452 a year in health care costs, which includes out-of-pocket expenses and monthly premiums. Illinois taxpayers pay the remaining $14,884 per worker.
- After 20 years on the job, employees of state government receive free retiree health insurance for the rest of their lives. This benefit costs taxpayers between $200,000 to $500,000 per retiree.
- State workers in Illinois are the highest-paid state workers in the nation, when adjusted for cost of living.
A report released in May by the Illinois Policy Institute examined the salaries and benefits received by Illinois state workers. The report can be found online here: http://illin.is/1Wmmdak.
The new report report, “AFSCME health benefits, wages out of sync with what Illinois taxpayers can afford,” can be found online here: http://illin.is/AFSCMEhealth
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