GARY | Members of Gary Teamsters Local 142 should retain their insurance benefits, once in jeopardy because the city of Gary had been three months behind in paying its bills until Wednesday.

Gary had owed Central States Health & Welfare almost $164,000 for the months of June through August for its city Teamster insurance benefits, Teamsters business agent Ted Bilski said.

City spokeswoman LaLosa Burns said the city sent payment to the company in overnight mail Tuesday.

"It is not out of the ordinary" to send such payments overnight, she said.

Bilski said he was told the insurance company had not yet received payment Wednesday night but that "the check is in the mail."

Bilski said he was told over the weekend that Teamsters had begun receiving letters from Central States -- dated Aug. 14 -- notifying them that their insurance would be suspended Sept. 14. The letter also offered the ability to enroll in COBRA benefits at a higher rate.

The suspension would have affected more than 100 Teamster city workers and their families, Bilski said.

Hearing that the crisis had been averted was "the best news I've had all week," he said.

The insurance plan at issue covers medical, dental and vision, and most workers would not have been able to afford COBRA coverage, Bilski said.

"When you're working 32 hours a week, the greatest percentage of them wouldn't be able to pay it," Bilski said, adding the city also had a similar problem paying insurance costs last summer.

All other insurance premiums for Gary workers are paid up to date, Burns said.