Illinois taxpayers’ costs for “Cadillac” state employee health plans rise 16% | Illinois

(The Center Square) – Illinois taxpayers will be paying more so state employees can have a “Cadillac” of health insurance.

The Government Budget and Accountability Commission met Tuesday in Springfield to review the state employee group insurance plan for fiscal year 2025. According to the 2025 budget plan, the State Employees Group Health and Life Insurance plan is proposed received more than $6.9 billion. , a total increase of 21% from last year, when the program received 5.7 billion dollars.

Taxpayers and government employees share in the cost of the program.

Raven DeVaughn, director of the Illinois Department of Chief Administrative Services, said the reason for the increase in the cost of financing the insurance plan is because of inflation.Â

State Sen. Dave Syverson, R-Cherry Hills, continued to press DeVaughn and said that other states are not seeing such large increases.

DeVaughn admitted that the reason Illinois’ growth is greater than that of neighboring states is because the plans are “Cadillac” plans.

“It’s no secret we have what we call the ‘Cadillac plan,'” said DeVaughn. it comes in at about a 40% increase. Those are unheard of in numbers. It’s been steady for our carriers. A very big increase across the board when it comes to the state of Illinois.â€

Illinois taxpayers are paying a 16.5% increase. Syverson said that the mandates passed by the government have consequences.

“As we continue to push for these mandates, there is a cost to that,” Syverson said. “If we see an increase of half a billion dollars, 16%, compared to all the states around us that do not exist” It is not different from us, where one digit increased (due to inflation), it is clear that it is an indicator of the actions of this parliament and the authorities .

Syverson also explained the financial consequences of promoting the government. In the past two years, the state employee group insurance program has grown by 6,000 people and dependents. This means that more active members are added to the insurance plan that taxpayers pay for.

Syverson said the program is seeing significant cost increases in part due to statutory mandates.

“That authority not only increases the cost to Illinois taxpayers for this program, but it means every small employer in Illinois is hit with the same obligations and feels the same pain we’re hearing right now,” Syverson said. .

Syverson asked about several ordinances coming down the line this legislative session. Kari Wolfe, Senior Director of Administrative Services for the Office of Benefits, said her office does a financial analysis of the bills when they are sent.

“There are some (bills) we have released that are expensive,” said Wolfe.

The proposed Health Care Protection Act would focus on spending management and banning prescription drugs. Governor JB Pritzker has touted this proposed legislation.

Used in the federal employee group insurance program, utilization management is when providers use evidence-based criteria to determine the appropriateness of providing benefits.