Deal struck on Detroit retiree health care


DETROIT — An agreement has been reached in a health insurance dispute between bankrupt Detroit and some city retirees.

The deal announced today by mediators likely ends a lawsuit by retirees. A court hearing set for next week has been canceled.

Some features of the deal include the increase to $300 in the monthly stipend for retirees over age 65 who are not eligible for Medicare. The stipend for retirees under age 65 will be upped to $175 if the household income is less than $75,000 and the retiree acquires insurance under a health exchange.

The city last year had proposed shifting some retirees to Medicare and giving a monthly stipend to retirees under age 65 to buy their own insurance.

The mediators say the deal was reached Thursday night.