Settlement reached on Detroit retiree healthcare-court mediators

Fri Jan 31, 2014 11:41am EST

Jan 31 (Reuters) - A settlement in principle has been reached over healthcare benefits for Detroit's retired workers, federal court mediators working on the city's historic bankruptcy case announced Friday.

Retired workers had sued the city over its plan to move some of them on to Medicare, while others would be given a monthly stipend to purchase health insurance through federal Affordable Care Act exchanges.

"Following completion and signing of a mediation agreement, the parties will submit a stipulation to the bankruptcy court dismissing the lawsuit," a statement from the mediators said.

Details of the settlement, which extends through the end of 2014, were not disclosed in the statement.