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Fri August 2, 2013
Kevyn Orr proposes new health care plan to save Detroit $12 million annually
Detroit Emergency Manager Kevyn Orr proposed a new health care plan to the city’s 47 unions Friday morning, according to Reuters.
The plan will save the city $12 million a year by raising deductibles and trimming the number of plans available, but it will keep premiums the same.
Currently, there are 20 health care plans available to employees. Orr wants to reduce that number. Under his plan, single city workers will see their annual deductibles increase nearly fourfold -- from $200 to $750 -- and out-of-pocket expenses will be capped at $1,500. Married employees will see annual deductibles increase to $1,500, and out-of-pocket expense will be capped at $4,500.
Co-pays for doctor visits and prescription drugs will stay the same. The city will also continue to offer vision and dental plans. Preventive measures will still be free.
“We think this is the best plan we could propose given Detroit's financial crisis, but I look forward to hearing from union leadership on their ideas to lower healthcare costs. . . . The City’s plan holds the line on premium costs for employees while allowing Detroit to save enough money to put another 100 police officers or firefighters on the streets.”
The proposal is part of Detroit’s financial restructuring efforts to eliminate more than $18 billion in debt.
-Michelle Nelson, Michigan Radio Newsroom