Deal struck on Detroit retiree health care - Dallas News | myFOXdfw.com

Deal struck on Detroit retiree health care

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Protesters seen here outside federal court in Detroit earlier this month. Protesters seen here outside federal court in Detroit earlier this month.

DETROIT (AP) - An agreement has been reached in a health insurance dispute between bankrupt Detroit and some city retirees.

The deal announced Friday 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.

Click here to read a statement from the United States District Court

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.

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