Report: Detroit EM cuts retirees' health benefits

Report: Detroit EM cuts retirees' health benefits

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Detroit's state-appointed emergency manager Kevyn Orr has cut city retirees' health care benefits and announced changes to coverage for active workers.

The Detroit News reports the changes announced Monday affect about 28,500 current and retired city workers. They go into effect Jan. 1.

Officials began sending notices last week to about 8,000 retirees under age 65 that Detroit is cutting their $605 per month retiree health insurance coverage and instead giving them a monthly $125 payment to use toward a private health insurance exchange plan.

Disabled retirees under age 65 will get a $200 monthly payment. More than 10,500 retirees over 65 will be offered a Medicare Advantage plan with city-funded premiums.

Detroit's 10,000 active city workers will see their individual deductibles nearly quadruple from $200 annually to $750.

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