State Employee Update: Feb. 28, 2025
Health Alliance insurance plan to cease operating at end of 2025
Earlier this week, Carle Health announced the discontinuation of its health plan offering, Health Alliance, at the end of the year with no forewarning and no real justification. This announcement effectively means current Health Alliance plan participants will need to find coverage under a different carrier.
It’s important to note that while Carle Health is pulling back from the health insurer industry, the clinical side of the organization’s operations—physicians, clinics, etc.—is not impacted by this decision.
The repercussions of this announcement are far-reaching, as the Health Alliance HMO has more enrollees than any of the other State Group Insurance offerings. AFSCME immediately followed up with DCMS regarding this development and its impact on state employees, retirees and their dependents. During those discussions AFSCME stressed the importance of retaining access to the services and network of doctors upon which current Health Alliance participants rely.
Given the abruptness of Carle Heath’s announcement, there remain more questions than answers at the moment. AFSCME will continue to meet with the state regarding this development and will provide further updates as more is learned about the impact on members and the group insurance program.
State budget holds the line on key public services
Gov. JB Pritzker introduced a balanced Fiscal Year 2026 budget proposal that averted major cutbacks, layoffs or closures.
Earlier indications of a large budget shortfall seem to have been avoided, as state revenues have exceeded projections.
The $55.2 billion budget represents a 2.5% increase over FY 2025. However, the reliability of federal funding, which is critical to state operations and programming, is highly uncertain as billionaire Elon Musk and the Trump administration continue their efforts to slash funding for public services.
Importantly, AFSCME’s contractual across-the-board wage increases and step adjustments for state employees are fully funded as part of the governor’s introduced budget, as is the Upward Mobility Program. There are no facility closures or employee layoffs included in this budget plan.
The plan also increases the number of budgeted positions at several state departments, including the Departments of Human Services (+34), Corrections (+585), Children and Family Services (+100), Juvenile Justice (+33) and Public Health (+29). Across the board, there are 563 net new positions in state government.
Hiring has picked up pace in recent months, but thousands of vacant positions remain—and the state will have to speed up hiring to fill these new positions in addition to the vacancies.
The recommended budget also fully funds the state’s pension contributions at $10.5 billion, an increase of $435 million over the current year, but does not allocate any additional funds beyond the required amount.
Nor does the budget meaningfully address the improvements to Tier 2 pensions that we’ve been fighting for. This just means that we’ll need to put even more pressure on lawmakers.
Next, the state legislature will debate and offer amendments to Pritzker’s recommended budget throughout the spring legislative session. As always, the AFSCME legislative team will be a steady presence throughout budget hearings in the Capitol and will be vigilant in opposing any attempts to cut jobs or services.
Republicans in Congress sets the stage for sweeping Medicaid cuts—effects in Illinois could be dire
For 3.6 million Illinoisans with disabilities and those living below the poverty line, Medicaid is a lifeline that gives them access to the healthcare they need.
But federal Medicaid funding is also a crucial component of the state’s budget.
Employees of the Departments of Health and Family Services, Human Services and Aging do work that is most closely linked to Medicaid funding, but cuts to the program could also have serious ripple effects that reach far beyond just those departments.
Illinois’ Medicaid program is jointly funded by the state and the federal government. For every $1 Illinois spends on most Medicaid-eligible programs, the state receives a roughly $0.50 reimbursement from the federal government.
Now, Congressional Republicans have agreed to a budget framework that would likely slash federal Medicaid funding by $880 billion over the next 10 years.
If Illinois were to lose a significant portion of the federal Medicaid funding, that would leave the state to pick up an outsized share of the costs. If that happens, the cuts would have such an enormous budgetary impact that they would likely be felt throughout state government, regardless of whether a department receives significant Medicaid funding.
It's critical that we stand united against any and all efforts to cut Medicaid. Not only is Medicaid funding inextricably linked to the state’s budget—it is also the lynchpin of health care access for Illinois residents.
Upward Mobility Program works wonders for state employees
Ever since it was established in the AFSCME State of Illinois Master Contract in 1989, the Upward Mobility Program has enabled thousands of state employees to expand their skills, grow their careers and advance into more challenging, higher-paying positions.
The program was born out of AFSCME’s vision that state employees shouldn’t have to leave the state to advance their careers. Before the program’s existence, very few promotional paths were available to state employees. And if an employee did want to achieve a better-paying position, they were left to figure out themselves what kind of training they needed—and how to pay for it.
The Upward Mobility Program works like this: After enrolling, an Upward Mobility Program counselor will help you pick the position you wish to achieve. Then, your program counselor will connect you with the training and educational resources you need to prepare for the job—with the program covering your costs. Once you’ve met the requirements for the job, you get priority for position you desire.
Today, some 6,000 AFSCME members in state government are enrolled in the program. If you’re interested in enrolling in the program, visit the CMS Upward Mobility site. If you have questions or problems, you can contact AFSCME Upward Mobility Coordinator Chris Goodman at (217)-788-2800.