SPRINGFIELD - A program that urges state retirees to opt out of Illinois' taxpayer-paid health insurance program is being credited with generating more than $600,000 in savings.

Just five months after saying the program had saved the state $250,000, state figures now show the program could save about $614,000 in the current fiscal year.

That's a small amount when compared with the nearly $1 billion that is spent on health insurance for state workers and retirees, but it's a start, officials say.

The program, approved by lawmakers last year, allows certain retirees to opt out of the state's group health plan. In exchange for moving into a spouse's private health care program, the state provides each retiree with a $150 per month incentive.

"By transitioning their insurance to an alternate provider, these retirees can put some extra money in their pocket while helping the state to rein in health care costs," said Paul Campbell, director of the Illinois Department of Central Management Services.

Paying out the incentive is cheaper than the $790 per month cost of providing health care to the retirees. In all, the agency said 80 people have signed up for the program, up from 65 during the previous fiscal year.

Although new to state government, the opt-out program is not uncommon in the private sector. A 2005 survey by Salary.com found that 14 percent of small businesses in the U.S. were offering cash incentives to workers who drop out of company health plans.

Kurt Erickson can be reached at kurt.Erickson@lee.net or 782-1249.