Detroit emergency manager eliminates retiree health care benefits. Obamacare and $125 instead

City officials have sent out letters to about 8,000 retirees under 65 informing them that they will no longer receive the $605 per month health care coverage, which the city has provided individuals, and the $1,834 monthly benefit for families. Instead the city will provide younger retirees with a $125 monthly stipend to purchase health insurance. To add insult to injury, this derisory sum will be treated as taxable income.

www.wsws.org...

In addition, the city will no longer subsidize dental and vision coverage as of January 2014 for all retirees, forcing them to pay the full cost of this insurance. These cuts, coming on top of planned reductions in pensions, will have a devastating impact on tens of thousands of people in Detroit who rely on the fixed incomes of retired workers earning less than $20,000 a year in pension benefits. The cuts will contribute to the early deaths of hundreds if not thousands of former workers who cannot afford private coverage

City workers who were promised the moon by the unions and cities are finally having a day of reckoning.. You have to feel sorry for those who believed they were safe..

It would have worked if the companies and tax base had stayed but they didn't..

Many cities in the future will be facing the same hard decisions and no doubt those who are retired along with everyone else will be having a living adjustment. Good that Obamacare is right there to step in and fill the void.. No doubt the taxable $125 will go along way with providing a family of two or more a plan with the affordable health care plan...

“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 Medicare, only providing them with $125 per month to purchase far inferior coverage,” said Committee chairperson Terri Renshaw. “Worse still, this payment is only for retirees. There is nothing for spouses or dependents.”

The committee also said Medicare-eligible retirees could see deductibles rise $500 and prescription drug costs increase 200 percent to 1000 percent, depending on the medicine, according to the Detroit News.

By backing Orr’s bankruptcy filing, the White House is now seeking to use Detroit as a model for sweeping attacks on the pensions, medical benefits and wages of tens of millions of federal, state and municipal employees throughout the country.

In this process, the real character of Obama’s health care “reform” is being exposed for what it is: a measure aimed at eliminating employer paid health benefits and forcing current and retired workers to pay for cut rate private insurance plans.

Maybe that makes some sense of the whole mess?

reply to post by 727Sky

It is hard for me to know how to respond to things like this. It is tempting to say 'I told you so' but, not only is it bad form, it doesn't appear to sink in.

What I am hearing is that, far from being the fault of this outrageously invasive and counterproductive state intrusion, its failure is being attributed to everything from software hiccups to doomsayer scare tactics and republican brinksmanship.

I guess we will just have to see if the left can learn anything, if they can't I see even more horrific consequences in our future.

reply to post by 727Sky


Bankruptcy is hard but I do not understand how you are linking it to the federal government and the presidency, at best they can only provide aid not remove anything from local management...

Panic2k11
reply to post by 727Sky

 

Bankruptcy is hard but I do not understand how you are linking it to the federal government and the presidency, at best they can only provide aid not remove anything from local management...

I did not link anything but the original article, which showed some of the options available to those who thought they would retire and have medical insurance for themselves and spouses.

The slashing of retiree benefits is part of the attack Orr and the bankruptcy court is preparing on city workers’ pensions. Defining pensions as another “unsecured debt,” Orr has threatened to pay only pennies on the dollar for the billions in unfunded pension obligations owed to retirees and their dependents

Orr, an unelected official installed by the state’s Republican governor, was a bankruptcy lawyer during the 2009 auto industry restructuring and helped the Obama administration slash the wages and so-called legacy costs of Detroit automakers. Dumping retiree health care obligations has enabled Chrysler, GM and Ford to make billions in profits.

I guess it depends on how one reads the article.

Stinks to not get what you were promised but in all honesty I have no sympathy for anyone that makes over the 20,000 a year mark that I've been busting my butt for.
Seriously it's things like this that I've always blamed made the cars cost so much to begin with. They didn't care about the average American then and so I can't feel bad for them now they should have saved some of that big money they made back then is how I feel. But yes it does bite not getting what you thought in the long run.
Welcome to the real world.

727Sky

In this process, the real character of Obama’s health care “reform” is being exposed for what it is: a measure aimed at eliminating employer paid health benefits and forcing current and retired workers to pay for cut rate private insurance plans.

Maybe that makes some sense of the whole mess?

And that is one of the many topics that we here in ATS discussed during the times that the bill was been propped for congress.

It all comes to fruition, but nobody wanted to listen.

Obamacrap the most expensive program to hit the working class in America

It will also force employees that will still be offered healthcare to foot higher deductibles in order for the employers to save money.

Im in Detroit and approaching the retirement age.

At my job now at one of the "big three" auto companies, they cut off all our benefits and gave every fulltime employee one check for $3000, another 6-months later for $3000. This was to "help" off-set our medical obligations that we now have to pay all of ourselves.

This is not generally known just yet, in the last 2 days, it was agreed to give us another check for $3300 in March for cancelling our medical benefits.

Sound great in theory...but guess what? All 3 check amounts....are BEFORE taxes. (Real lousy thing to do to us.) So we each receive around $2200 instead of the 3 grand.

All this may sound great to some, but this unexpected 3rd payout Im getting doesnt even CLOSE to what my monthly meds, diagnostics and office appointments cost. In my case, I have heart issues, and spinal ones as well. Both of those have intensely huge fees to just keep up, so I cant get them and have to just hope for the best.

We are getting that $3300 (actually $2000 or so after taxes) to offset the fact our employer still cannot provide all of us any medical. I think this is reflecting across the board.

Connman
But yes it does bite not getting what you thought in the long run. Welcome to the real world.

Prophetic words. I cannot help chuckling when I associate them with your user name. America needs to look a bit more deeply into the prophecies surrounding the Ark of the Covenant. It continues it's journey westward and our walls begin to crumble just like those of Jericho.

reply to post by mysterioustranger


I am so sorry for you and others that will follow. I am not happy with Obamacare; it is just another tax with the full force of the IRS to make everyone comfy while jacking up the rates for most who can least afford it.

Time will tell if I am wrong and honestly it would be better if I were. An increase of some 40% with a $5000 deductible and a 29 hour work week that will be forced on some is a losing proposition for the people, companies, and America IMO.

727Sky
Time will tell if I am wrong and honestly it would be better if I were. An increase of some 40% with a $5000 deductible and a 29 hour work week that will be forced on some is a losing proposition for the people, companies, and America IMO.

How can YOU be wrong when a few of our own politicians have said the same thing on internationally televised broadcasts? The question is: Where is the denial of these facts by TPTB? BOHICA

reply to post by 727Sky

Youre so right. Dont get me wrong, I am truly blessed having a job, and how long it lasts? Dont know. Ive been here 7 years, and each day could be my last.

And no one here seems to know anything factual about Obama-"cure". But, its no good for the wife and me, and worse for the unemployed and those with kids, mortgages and car payments. Im fortunate to not have any of those, so I cant even imagine how bad its going to be with everyone else...

All I know is we here at work were supposed to be offered med coverage the 1st of the year...and instead...theyre throwing a one-time check like a bone to a groveling dogs. And it wont even make a dent in neccessary coverage for me and people with families...

Thanks for the reply 72'...............

For the life of me can't figure out why some can't see what the government is doing. If you aren't already receiving some form of government benefit you soon will be one way or another aka ObamaCare. The government wants you to need them. Because the more you need them the more you will do what they tell you to do. Soon in this country we will have the rich, the poor and the working poor. ObamaCare is going to hurt way more than it will help. Good luck everyone.

I hope things work out for you mysterious stranger, you have been put in a bad situation and there will be more stories like yours I am sure to come.

727Sky
Many cities in the future will be facing the same hard decisions

UNTRUE.

Detroit faces NO hard decisions. They are ALL easy decisions.

The SOLE problem in Detroit is not the motor industry. The sole problem for Detroit IS ...Detroit.
City Hall has been carpet bombing the local business for years.

TO restore Detroit all they need to do is repeal pretty much every stroke of legislation passed by City Hall over the last 30 years and the place will experience a boom unseen in the world for decades.

As a property owner there, I do know what I am saying.

abacus10

727Sky
Many cities in the future will be facing the same hard decisions

UNTRUE.

Detroit faces NO hard decisions. They are ALL easy decisions.

The SOLE problem in Detroit is not the motor industry. The sole problem for Detroit IS ...Detroit.
City Hall has been carpet bombing the local business for years.

TO restore Detroit all they need to do is repeal pretty much every stroke of legislation passed by City Hall over the last 30 years and the place will experience a boom unseen in the world for decades.

As a property owner there, I do know what I am saying.

You will have no argument from me. Do you believe City Hall in Detroit or half a dozen other cities in the states will do what is necessary to stave off the same results? A few in California have ran their tax base off and are now in the same situation. Change is necessary but it would appear talk is all that happens until they file for bankruptcy then the knife comes out and many are cut.

It seems that the government and private employers are allowed to change the terms of the contract at anytime they like. if people had been told the truth when they were interviewing for the job they might have refused the job and looked else where for a job with better benefits.
It`s fraud plain and simple, offer them the world to work for you and hold them strictly to every letter of the contract and then when they retire they get an, "oops, our bad we can`t abide by our end of the contract,but thanks for the 30 years of dedicated hard work, cya"
30 years ago the job market was much better and companies had to compete for employees.now we see why companies offered such great retirement benefits to get people to come and work for them, because they never intended to give them those retirement benefits.
mismanagement of a company or a local government is not the fault of the employee and they should get what they were promised.

reply to post by mysterioustranger


What happened to the unions? When my dad worked for one of the big three, any time they tried to change either the benefits, or the retirement, the unions went bats*** on them, and they backed off.

Wait, the unions thing this new healthcare is a good idea, don't they?
Shows how useless they have become.

They busted the unions in Michigan like Wisconsin. And why has the republicans when elected governor, done this. We'll because they care about working middle class families and love the country. Like in Orwells 1984 next year they will say,"good news comrade, your health care stipend is BEING RAISED to $50.

reply to post by chiefsmom


Actually unions are now within those groups that are against the Obamacrap. First they were for it, but now that the bill is coming into the light and its true intentions are show up they have turn their back to it.

reply to post by chiefsmom


You can only go bat# on them so many times.

Sooner or later when a city says "we're broke" they'll actually be broke.

All the striking and whining and rioting in the world can't change that.

It's not like there is some hidden chest of gold doubloons buried in the back yard.

The demands of the unions of your dads era played a part in the cuts of todays era.

ETA: So did the scheming and pandering of countless politicians who are only ever concerned with the next election cycle and never bother to look 10, 20 or 50 years down the road.