About 24,000 retired Detroit public servants will soon receive letters notifying them that they are losing their health insurance on March 1, even as the city claims to be negotiating with retirees’ groups to strike a better deal on health care.
The bankrupt city’s emergency manager Kevyn Orr is sticking to the same proposal for drastic retiree health care cuts that he initially intended to implement this month, prompting a group that represents retired Detroit workers to threaten they will sue the city.
For the two-thirds of the retiree group who are old enough to be eligible for Medicare, the plan means shifting onto the government-run insurance program for seniors. But 8,000 younger retirees will have their insurance plans replaced with a monthly stipend check of just $125 to subsidize the cost of insurance plans they will have to find on their own.
When that plan was initially floated last fall, a pair of retired firefighters young enough to be stuck with stipend checks told ThinkProgress that the change would doom their recoveries from the serious injuries they sustained protecting the city. Retired librarian Gwendolyn Beasley, 67, said the shift to Medicare’s less-generous coverage would mean choosing between groceries and prescriptions
