San Jose could save millions by trimming employee health care

The San Jose Mercury News reports:

With San Jose facing a staggering $90 million deficit in the coming year, city auditors have found a way to save about $20 million a year. But it won't be popular with city employees.

The remedy? Bring San Jose's generous health care benefits more in line with plans offered by other governments and private employers.

The city could save a bundle by doubling employees' 10 percent share of premium costs, hiking co-payments from $10 to $25 a doctor's visit, and scaling back the $5,560 city employees take home if they decline health coverage. That's according to an audit the City Council will discuss Tuesday.

Some city officials say the suggested changes are long overdue, noting the alternatives are laying off employees, outsourcing city services or trying to squeeze voters for more taxes.

Not a bad deal.