Chicago Mayor Rahm Emanuel is leading the charge in the public sector to cut healthcare costs by shifting retirees into new public insurance exchanges created under Obamacare.
Detroit, which filed for bankruptcy, hopes to push retirees who are too young for Medicare onto the new public insurance exchanges as a way of shedding healthcare liabilities. Chicago has proposed a plan to migrate most of its 30,000 under-65 retirees to the state exchanges by 2017. And, in the private sector, more than 60 percent of employers are reassessing their retiree health coverage as a result of the Affordable Care Act (ACA), according to a study to be released this week by Aon Hewitt, the benefits consulting firm.
The ACA’s exchanges offer employers a way to cap or reduce their exposure to rising retiree health costs, most often without actually reducing the benefits provided. Learn more at Reuters Money.
Photo: afagen, via Flickr.