State lawmakers will try again to rein in health care costs for state retirees. The legislature tried to change pensioners health care last session but were beat back by firefighters, police officers, and others. Representative Tom Barrett says the issue must be resolved.

“My worst-case scenario is three or four municipalities go bankrupt and everybody's healthcare gets wiped out by a bankruptcy judge and then everybody has nothing. And that would be a catastrophic impact.”

Last year's plan called for eliminating retiree health care benefits for local government employees and replace that with a health savings program as well as closing the Michigan Public School Employees Retirement System.