Cape council must weigh health-care options

The plight of the Cape Girardeau City Council over the skyrocketing cost of providing health insurance employees is a familiar one to the city's business owners who have watched annual premiums jump year after year even while deductibles have been increased an overall coverage has diminished.

At a study session on the budget this week, the council learned that premiums would to up more than half a million dollars -- about 45 percent -- to more than $1.6 million. The city provides health coverage both for current employees and retirees.

As council members observed, it's impossible for the city to accept million-dollar increases (other costs are going up too) in operating expenses when the city's revenue is relatively flat.

Those council members are dead right. Just as businesses have had to reduce or eliminate health-care packages for their employees, the city will have to look at ways to reduce its costs as well. One option that was suggested would be to partner with Jackson and Cape Girardeau County. But the change that saves the most money is likely to be reduced benefits under the city's health-insurance plan.

Any change in the health program is likely to be a hard hit for city employees who face a third year without pay increases. But until the city sees increases in revenue, it's going to have to consider options that will, no doubt, be considered drastic.