The city of Detroit will delay its plan to move retiree healthcare onto the Affordable Care Act exchanges because of problems that are plaguing the roll-out of the online insurance marketplaces, Reuters reported yesterday. Detroit planned to provide all city retirees who are not eligible for Medicare with a stipend to purchase health coverage on the Affordable Care Act to take effect on January 1, said Heather Lennox, the city lawyer. Instead, Detroit will delay the plan a month, extending the current coverage through January 31. Emergency Manager Kevyn Orr announced changes to current and retiree healthcare plans last month. Detroit has $5.7 billion in liabilities for healthcare and other retiree benefits, which accounts for about half of the city's $11.5 billion in unsecured debt. The city will provide most retirees under 65, who are not yet eligible for Medicare, $125 per month to purchase coverage on the healthcare exchanges. Retirees with disabilities will get $200 per month. Retirees over 65 will choose from three Medicare Advantage plans, in which the city will pay most or all of the premiums. They could also enroll in a Medicare Part D drug plan for which Detroit will pay the premiums.
