Wednesday, July 31, 2013

Detroit proposes to shift retirees into new insurance markets to help cut costs

How will the health insurance marketplace impact retirees in Detroit with the state filing for bankruptcy? Detroit owes around $5.7 billion in health costs for retirees, but as they prepare to file for bankruptcy, people are wondering where the state will come up with the funding. This week, they announced a proposal that could possibly help them save millions of dollars in the future, so what is the solution?

State officials are proposing that they deny younger retirees, ones who would be too young to qualify for Medicare out of city-run coverage and into coverage that's issued by Obamacare. Officials say the plan would be part of a broader effort to save Detroit tens of millions of dollars in health costs each year, a major element in a restructuring package that must be approved by a bankruptcy judge. It is being watched closely by municipal leaders around the nation, many of whom complain of mounting, unsustainable prices for the health care promised to retired city workers.

What is the best solution for unfunded retiree healthcare costs?

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