Updated: Friday, 11:25 p.m. -- Crain's Detroit Business reported:
Detroit will offer its more than 21,000 pensioners new monthly health care stipends ranging from $175 to $300 if they are not Medicare-eligible, $125 for some retiree spouses buying separate coverage — or $100 toward the premium of a new sponsored health plan, under a settlement covering retiree health costs announced Friday.
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Groups negotiating with the city over retiree health care cuts reached a deal with Detroit Thursday night that would provide benefits through the end of 2014.
Retirees were concerned about their heath care being slashing during bankruptcy proceedings.
Details are scarce at this point, but a lawsuit filed by groups representing retirees is expected to be dropped if the deal is finalized.
A source who asked not to be identified told Crain's the deal improves "by a significant chunk" the amount Detroit agrees to pay out on its health benefits, compared to the city's original position.
Detroit Emergency Manager Kevyn Orr has previously proposed giving retirees under 65 a $125 monthly stipend to use toward buying health insurance to comply with the federal Affordable Care Act, or shifting those over 65 to Medicare.
