Detroit emergency manager proposes cutbacks in health plan for city workers to save $12 million

By Reuters
Friday, August 2, 2013 13:25 EDT
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A large "Opportunity Made In Detroit" banner is seen on the side of one of the buildings owned by Quicken Loans founder Gilbert in downtown Detroit
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DETROIT (Reuters) – Detroit Emergency Manager Kevyn Orr on Friday proposed a new healthcare plan for city workers that is projected to save the city $12 million a year by raising deductibles and trimming the number of plans available.

Orr aims to cut the number of healthcare plans available to employees from the current 20. The annual deductible for a single city worker would nearly quadruple to $750 from $200 under the new proposal.

The annual deductible for married employees would increase to $1,500, and out-of-pocket expenses for a family will be capped at $4,500, up from $3,000 currently.

The changes were presented to union officials Friday, the city said in a statement, adding that it was part of the ongoing talks between Orr and the unions.

Detroit filed for the largest U.S. municipal bankruptcy in history last month.

(Reporting by Deepa Seetharaman and Dan Burns; Editing by Lisa Von Ahn)

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