CROWN POINT | The Lake County Council will be asked to cut health care insurance costs by encouraging employees aged 65 and older to retire or reduce to part-time hours.

Lake County Commissioner Gerry Scheub, D-Schererville, and Lake County Councilman Larry Blanchard, R-Crown Point, said the county's insurance oversight committee has issued recommendations that will be written into a proposed ordinance that could slash as much as $2 million out of the county's next budget.

The proposal would reduce health insurance costs for employees 65 and older with at least five years of active service who retire or decrease their work hours to three days a week.

Tom Dabertin, a consultant to the county on personnel matters, said the savings to the county would be generated by shifting the bulk of health care costs of senior employees from local taxpayers to Medicare and Medicaid.

Scheub and Blanchard said the council would have to pass an ordinance to implement the change. The retire-rehire program would be voluntary, and employees would be given six months to opt in.