City Retirees Moved to ObamaCare
- Chicago will phase out its 55 percent subsidy for retiree health care by January 2017 but continue that coverage for the oldest retirees, under a mayoral plan that will free taxpayers from a $108.7 million a year burden. Thirty thousand retired city employees will be forced to switch to Obamacare.
[...]More than 35,000 government retirees have been on pins and needles waiting to find out whether Mayor Rahm Emanuel will continue their city-subsidized health insurance after June 30, when a 10-year settlement agreement that calls for the city to share costs with retirees is due to expire.
They are not likely to be relieved when they find out how Emanuel has decided to resolve the politically volatile issue.
There was this though:
- But 5,500 of the oldest and most vulnerable retirees—known in the marathon litigation as the “Korshak class”—will be guaranteed a 55 percent subsidy as long as they live. They retired before Aug. 23, 1989. Specifics of the three-year phaseout for the remaining retirees will be unveiled by the end of the year.
- The annual costs do not include police and fire early retirees, who receive free health care under the active employee benefit plan until they become eligible for Medicare.
This is going to change a lot of retirement equations. It will probably end up in court for years, too.