Detroit is Trying to Dump its Retirees on the Exchange
And it isn’t easy:
Detroit’s emergency manager, Kevyn Orr, has announced that to return the city to solvency, effective Jan. 1, he will stop providing coverage to 8,000 retirees under age 65. Instead, they will receive a $125 monthly stipend to use toward private plans from the exchange. (Spouses and dependents don’t get anything.) The hope was that the Affordable Care Act’s subsidies would kick in for unmarried retirees making from $11,490 to $45,960 and married retirees making from $15,000 and $62,040 annually, the cutoffs for eligibility.
The stipend combined with the subsidies would allow the city to slash its unfunded health-care liabilities — which are about a third of its total debt — and most retirees to obtain coverage with minimal out-of-pocket expenses. It would be a win-win for all, except maybe for federal taxpayers, who would be on the hook for the ObamaCare subsidies.
The hitch is that the Michigan exchange, like many of the 35 others run by the federal government after the states refused to build their own, has been beset by glitches. Enrolling has been a nightmare, although some reports suggest that “navigators” — trained professionals who help consumers navigate the website — have been having some luck in the last few days. Even if consumers manage to enroll, however, it’s unclear they will actually get coverage given that the exchange reportedly isn’t providing accurate enrollment information to underwriters. (Shikha Dalmia)
“navigators”
It’s deplorable that we now have a group of people making a profession out of navigating public benefits programs. The programs should be simple and straightforward.
It’s been speculated that its a ploy to keep people off the rolls. The more complicated it is, the less they have to pay for it.
That would be equally deplorable.
“The hope was that the Affordable Care Act’s subsidies would kick in”
I have a great idea: let’s gamble with people’s retirements and health!
Nothing could ever go wrong with that!
Typically, Republicans who were itching to bail out corporations now want nothing to do with helping a city.
It would be a win-win for all, except maybe for federal taxpayers”
So in other words: a loss for most?
Fortunately, few people pay federal taxes.
Unfortunately, that’s because most don’t make enough to have those burdens apply. Which, depending on your point of view might be good.
“Instead, they will receive a $125 monthly stipend to use toward private plans from the exchange.”
Wow, that’s basically nothing.
Certainly not enough for most to live comfortably with.
“to return the city to solvency”
Yeah, that’s never gonna happen.
Robocop will happen before solvency.
They’ll reclaim the city from bears before solvency.
Robocop about corruption committed by the executives of a corporation that was a police contractor for Detroit. Maybe they could reprogram Robocop to go after Detroit’s labor-crony pension plan administrators and crooked city councilmen.
“The hitch is that the Michigan exchange, like many of the 35 others run by the federal government after the states refused to build their own, has been beset by glitches.”
If Republicans had joined in then the system wouldn’t rely so much on the federal side and things would be working right.
Then why are the state exchanges equally riddled with glitches?
Because Republicans stood against them at every step, so they weren’t able to get the best technology for them.
Detroit is Trying to Dump its Retirees on the Exchange
I’m sure Detroit will have plenty of company.
Retiree health care for some government employees has been wildly generous. In some cases a person could retire at age 55 and receive family insurance for life, with even Medicare as secondary coverage.
I am not saying this is fair to taxpayers. But it will be a real comedown for the ‘lucky duckies’ if they must use the exchanges.
A 60 year old can in fact get a high deductible plan on the exchange for $125 a month, if they have a poverty level income and are living on savings.
But if they have a family income above $40K and no kids at home, their costs will be much much higher even with subsidies.