Luckily, Obamacare has now been passed so we can see what is in it. But, the picture just keeps getting worse.
As we know, Chicago is virtually broke, and it’s long term pension obligations are enormous. So, last summer, Mayor Rahm Emanuel appointed a four person commission to study the costs of continuing to provide health care benefits to retirees who are not yet Medicare eligible. Given that many public employees can retire in their 50’s, these costs are high.
The four-member panel issued a report this month suggesting that dumping pre-Medicare retirees onto the state’s ObamaCare exchange in 2014 could be fab for retirees and city taxpayers. Nearly 60% of retirees and 94% of those who receive subsidies would pay less for their health care on the exchange…
Chicago and its pension funds in turn would shed $23 billion in liabilities, assuming supplemental benefits for Medicare recipients are also cancelled.
Wow, what a deal.
There is a “minor” drawback, however.
…[T]he cost to national taxpayers would be enormous, especially if other local and state governments joined the party. Federal subsidies for Chicago retirees would amount to $44 million in 2014 and increase as more workers retire in their early to mid-50s and health costs grow.
So, under Obamacare, not only will you have to pay more for your own health insurance, you also will have the privilege of bailing out the city of Chicago, and, no doubt, countless other cities and municipalities.
I’ll bet you feel better already.