Spiraling health-care costs may push Provo city officials to reduce health insurance benefits to about 80 retired employees.
Last week, retired and present employees crowded into City Council chambers to hear a plan to separate insurance for the two groups.The retirees would be offered an insurance plan with higher deductibles and no prescription cards.
"We need to do something to control health care costs in the city," said Mayor Joseph A. Jenkins.
The city spends about $200,000 each year on health insurance for more than 800 municipal employees, and the cost may rise as high as $2 million within 10 years, Jenkins said.
"We have a responsibility to the taxpayers that we straighten out this problem," Jenkins said. "We can choose not to do anything about it for now, but it's a problem that will not go away."
The retirees pay about 10 percent of the city group's premiums but account for more than 30 percent of its claims.
Retired city employees are threatening a lawsuit if the city increases health insurance deductibles.
Tom Giles, a retired fire battalion chief who worked for the city for 32 years, said, "Where do you get insurance when you're 62 years old? These new rules were not in place when we retired."
City officials said the change was proposed at the suggestion of insurance companies.
The council is expected to consider the issue again Nov. 17, when a committee will make a recommendation.