City retirees file suit against health care plan cuts - KMSP-TV

City retirees file suit against health care plan cuts

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(WJBK) -

DETROIT (AP) - City retirees are seeking a court injunction to stop health care benefits cuts by Detroit's emergency manager.

Retirees say in a suit Tuesday in federal court that a plan imposed by Kevyn Orr violates a compensation package that included a commitment to provide health care benefits at significantly reduced or no cost upon retirement.

Orr's changes start Jan. 1 for about 28,500 current and retired city workers.

The city is cutting $605-per-month retiree health insurance coverage to about 8,000 retirees under age 65 and instead giving them a monthly $125 payment to use toward a private health insurance exchange plan. More than 10,500 retirees over 65 will be offered a Medicare Advantage plan with city-funded premiums.

Orr's office says "the city faces an unfunded healthcare liability it cannot afford."

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