- Associated Press - Thursday, October 2, 2014

CHICAGO (AP) - A federal appeals court is allowing Chicago Mayor Rahm Emanuel to proceed with rate increases on retired employees’ health insurance while the plan is challenged in court.

The retirees’ attorney, Clinton Krislov, told the Chicago Sun-Times Thursday (http://bit.ly/1BCmqr4 ) he’s disappointed the 7th U.S. Circuit Court of Appeals denied the motion for an injunction.

The court’s denial Tuesday means some retired city workers will see their insurance premiums climb significantly when rate increases take effect Jan. 1.

Chicago is phasing out the city’s 55 percent subsidy for retiree health insurance by 2017. Retirees have sued to preserve the city’s contribution. Former workers who retired before Aug. 23, 1989, aren’t affected by the phase-out and are continuing to get subsidies of up to 55 percent.

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Information from: Chicago Sun-Times, http://www.suntimes.com/index

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