Policy

Detroit Considers Shifting City Retirees to Obamacare

Call it a backdoor bailout

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Detroit could be looking to ObamaCare for a bailout as city leaders try to cut back on retiree health costs as they enter bankruptcy proceedings. 

The New York Times reported Monday that the city is proposing a plan aimed at reducing its $5.7 billion in outstanding retiree health costs. 

In short, they want to take those retirees too young to qualify for Medicare and send them into the ObamaCare insurance markets—which are scheduled to launch next year. 

Doing so would ease the burden on the Detroit coffers by taking them off city coverage. 

But it would inevitably increase the burden on the federal government, with subsidies from ObamaCare being provided by federal taxpayers.