School retirees lose health insurance case in state (Mich) Supreme Court

[Bozita]

All five are ... Republicans. ... Why am I not surprised?

http://www.detnews.com/2005/schools/0506/29/0met-232047.htm

Wednesday, June 29, 2005


School retirees lose health insurance case in state Supreme Court

By David Eggert / Associated Press

LANSING - The Michigan Supreme Court rebuffed public school retirees who challenged increases in their health insurance deductibles and prescription drug copays.

The court, in a 5-2 decision Tuesday, rejected arguments by six retirees who said increases in their deductibles and copays were unconstitutional and significantly shifted the burden of health care costs from employers to retirees.

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The state constitution prohibits the state from decreasing an "accrued financial benefit." Unlike pension payments, Taylor wrote, health care does not fit that category as understood by ratifiers of the 1963 state constitution because they are "nonmonetary" and do not grow over time with the number of years of work completed.

The majority also said the Legislature never intended to be bound by a contract when it began providing health care for public school retirees, To hold otherwise would "swallow the right of the people to change the court of their governance," Taylor wrote.

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