DETROIT (AP) — The city of Detroit is suspending a plan to change retiree health insurance, at least through February.
Emergency manager Kevyn Orr says his staff will negotiate with a committee created to represent retirees during the city’s bankruptcy case. He hopes it will lead to a long-term solution.
The city had proposed shifting retirees to Medicare, effective Jan. 1. Retirees under age 65 would have been given a $125 monthly stipend to get their own insurance.
Retirees filed a lawsuit in response to the changes. Judge Steven Rhodes had planned to hear a request for an injunction, but the city’s latest move makes that unnecessary.
The lawsuit will be withdrawn but could be filed again.