Kate Thayer, TribLocal reporter

A cash incentive program for District 211 employees who choose a less expensive health insurance option could soon be under scrutiny.

Board member Anna Klimkowicz raised concern for the program Thursday before the board approved premium rates for 2011.

The district, which offers four different PPO plans and an HMO plan, provides cash incentives to each employee who selects a plan other than the plan with the most coverage – which is called PPO-1, and is the most expensive for the district.

“Our teachers are extremely well paid. They can afford (the annual cost to receive health insurance.)” Klimkowicz said. “How can we say we’re saving money? It becomes an expense.”

But district administrators said the program allows healthy employees to opt for less coverage, and in turn receive cash back, while the district saves money with fewer choosing the most expensive plan. Officials Thursday could not estimate an exact savings amount.

The cash refund employees receive depends on which plan the employee chooses. It is 50 percent of the district’s savings – or the difference between the employee’s choice of the four cheaper plans with less coverage and the most expensive plan with the most coverage. There are a few options for how an employee can receive that money, including one lump sum.

Superintendent Nancy Robb said a committee is evaluating policies relating to health insurance, including the cash incentive program.

“We will be looking at this again,” Robb said.

kthayer@tribune.com