Watch CBS News

Wayne County Reaches Deal To Cut Retiree Health Care Costs

DETROIT (AP) - Wayne County and about 5,000 retirees have agreed to a deal that will cut their health care benefits and save the county about $20 million each year.

Officials say Wednesday that the annual costs to the county will be cut from $30 million to $10 million.

The county says the agreement includes the settlement of a retiree lawsuit accusing the county of reducing benefits contrary to union contracts.

About 80 percent of the retirees affected by the settlement are eligible to receive Medicare and will get $130 per month to buy supplemental Medicare health insurance. The remaining 20 percent are not yet Medicare eligible and will get a stipend for health insurance.

Wayne is Michigan's most populous county, with about 1.7 million residents. It faces a $52 million structural deficit.

© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.