The ObamaCare Blue-City Bailout

Federal taxpayers pay as municipalities save billions by dumping their retirees onto the government exchanges

By Allysia Finley. Excerpts:

"Mr. Emanuel dumped his city’s retirees onto the nascent ObamaCare exchanges, where federal subsidies can reduce premium payments. Voilà, Chicago’s $2.1 billion unfunded retiree healthcare liability vanished. Now U.S. taxpayers pick up the tab for Chicago’s retirees in their 50s and early 60s."

"Detroit, Stockton, Calif., and San Bernardino, Calif., also saved billions by shifting pre-Medicare retirees to ObamaCare when they filed for Chapter 9 bankruptcy in the 2010s."

"Democrats in Congress, who are refusing to reopen the government unless Republicans agree to extend the pandemic-era ObamaCare subsidies that are set to expire at the end of the year. The news is filled with stories of people who will have to pay modestly more for their insurance, never mind that the feds would still pick up roughly 80% of the cost for a typical plan."

"few governments have set aside money to pay for their retirees’ future healthcare costs. The Reason Foundation reports that state and local governments faced $958 billion in retiree medical obligations in 2023, about $2,900 per American. The liabilities are largest in blue states"

"The sweetened ObamaCare subsidies, however, can slash premium payments for retirees with bigger pensions."