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

City retirees file suit against health care plan cuts

Posted: Updated:
Detroit skyline Detroit skyline
(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."

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices