Detroit spent all its money and then some, and now it plans to solve its financial woes by dipping its hands more deeply into the federal purse.
Treasury Secretary Jack Lew said on Sunday that a direct federal bailout for the bankrupt Motor City is out of the question, but Detroit has something else in mind.
FoxNews reports the city has $5.7 billion in outstanding retiree health costs, and plans to take retirees too young to qualify for Medicare and send them into the ObamaCare insurance markets, thus increasing the burden on the federal government, with subsidies from ObamaCare being provided by federal taxpayers.
The New York Times reported that Detroit is proposing a plan aimed at “reducing” its $5.7 billion in outstanding retiree health costs, when in reality, the costs are simply being shifted elsewhere. The Times also reported Chicago and other economically unsound cities are also “contemplating shifting retirees onto the insurance exchanges.”
Fox points out that Detroit’s savvy plan is dependent upon Obamacare’s exchanges happening as scheduled at the beginning of 2014.