Skip to comments.Detroit Scraps Benefits for City Pensioners, Puts Them into ACA Exchange (Obamacare retirement)
Posted on 10/22/2013 12:42:47 PM PDT by SteveH
As bankruptcy hearings continue in Detroit to determine the legality of the citys historic Chapter 9 bankruptcy filing in July, state workers are hoping to get some clarity on the future of their pension benefits.
While bankruptcy and union lawyers continue to battle it out, the city has already announced significant changes to its retiree health benefits program. Effective Jan.1, retired city workers under age 65 will no longer receive full coverage from the state and will instead receive a $125 stipend to shop in Michigans health-care exchange under the newly-rolled out Affordable Care Act.
Retired city workers already eligible for Medicare will continue to have most or all of their costs covered by the city, according to The Detroit Free Press . At $6 billion, health-care benefits for retired city workers are nearly one-third of the citys total $18 billion in liabilities. The Detroit Free Press also reports the city estimates these cuts will reduce coverage costs for retirees to $50 million or less from $170 million.
The Department of Health and Human Services estimates the average American will pay $328 per month for a premium health insurance plan on the exchanges before any subsidies. HHS reports the weighted average premiums in Michigan for a lowest cost silver plan are $271, $306 for the second-lowest cost silver plan and $222 for the lowest-cost bronze plan. The retired workers receiving the $125 monthly stipend in place of full benefits could still be eligible for subsidies under the ACA, for those making up to 400% of the federal poverty levelabout $45,000 for an individual, according to the Kaiser Family Foundation.
(Excerpt) Read more at foxbusiness.com ...
I hope those folks younger than 65 voted for Barry Soetoro.
A $125 dollar stipend, what an insult.
That is almost as insulting as Social Security paying out $250 dollars for a burial.
I think I will cancel my Michigan vacation planned for this year...
Sounds good to me!
My advice - get up at 3 AM to log-in, to avoid the rush on healthcare.gov
Most of them voted several times.
Don't spend that all in one place.
Those of us knew this was the plan all along. Put the bankrupt cities retirees healthcare onto the feds through obamacare.
Unexpected — not
the point is that everyone with a retirement plan is potentially vulnerable to obamacare in the future... plus a $125 stipend for the inconvenience...
make all of America subsidize them?
> “That is almost as insulting as Social Security paying out $250 dollars for a burial.”
Why should Social Security pay anything for a funeral?
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Obviously you did not know they did.
This is why Snyder wanted Medicare expansion so bad and nixed Pat Colbeck's free-market alternative by 1 vote in the Senate by a turn-coat Republican, he need something to put them. Must be too much of a Statist for a free-market alternative. I can't vote for him again because of this.
and the residents of DeToiloit will still vote for their DemoRats and blame others for their mess. Pure lunacy but so be it as they choose or refuse to see the truth. Oh well....
Oh oh....somebody just got a bill for a free lunch.
you have to trademark that. please. lol...