Detroit retirees say health care cuts ‘inhumane’
By Thompson, Bankole | |
Proquest LLC |
The group said the
The group said its current health care benefits are vested and lifetime in nature that were negotiated by retirees in lieu of compensation.
"This action seeks to reduce health care related payments to retirees by more than 80 percent and would eliminate all health care benefits for the 8,000 retirees who are not eligible for
According to the group, for retirees who are
However, Orr's spokesman.
Nowling said most active employees will see a decrease in their share of insurance premiums, but will pay higher deductibles and certain out of pocket maximums under the new structure. Retirees who are younger than 65 will receive a monthly stipend of either
"This new health benefits structure allows the city to provide quality health care to its active employees. It also will provide retirees who are enrolled in
The group said retirees who are
"The city's actions were taken without court approval and were made over the objections of the Retiree Committee and others closely associated with the bankruptcy case who had been seeking a more humane, long-term solution to health care issues," Renshaw said. "Higher costs, less coverage and huge increases in prescription drug payments are the key components of this plan. These reductions, coupled with the city's threatened pension reductions, is draconian, inhumane and unprecedented. Exposing thousands of retirees on fixed and limited incomes to this burden is unacceptable and we will spend the days and weeks ahead fighting this plan."
In an interview with the
FACT SHEET FOR
* There are more than 20,000 retirees from the city of
* The city's new plan seeks to go into effect on
* The plan will eliminate all healthcare benefits for the 8,000 Retirees who are not eligible for
The Harm From The City's Plan to Retirees Who are Not Medicare Eligible (Generally Those Under 65 Years of Age and Certain Uniformed Retirees)
* Currently, the city contributes between
* These monthly checks will constitute income and thus be taxable to many Retirees.
* The drop to
* The health insurance the city contractually agreed to provide - promised to provide - and the retiree earned, as deferred compensation - has covered approximately 90% of the health care costs incurred. The city's plan will eviscerate such coverage.
* On the Affordable Care Act exchanges, a couple making
* For a couple who incurs an average amount of medical charges in a given year, this will result in an annual increase in out-of-pocket health care spending that could easily exceed
* The new plan eliminates many retiree contributions to
* The city's plan eliminates the city's premium payments for all dental and eye care.
By
CHRONICLE SENIOR EDITOR
Copyright: | (c) 2013 Michigan Chronicle |
Wordcount: | 1062 |
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