OPM Clarifies Postal Service Health Benefits Rules, Sparking Controversy
The Office of Personnel Management (OPM) has clarified rules for the new Postal Service Health Benefits Program (PSHBP), sparking controversy ahead of its first open season. The program aims to create a USPS-only health insurance plan, similar to the Federal Employees Health Benefits Program.
OPM stated that its regulations are guided by congressional intent to generate cost savings for the PSHBP program by shifting costs to Medicare. However, William Shackelford, national president of the National Active and Retired Federal Employees Association, disagrees with OPM's legal analysis, warning that some postal retirees may face increased prescription drug costs.
OPM's rule mandates that Medicare-eligible postal workers and retirees will be enrolled in insurance coverage that includes a Medicare Part D employer group waiver plan (EGWP). The first open season for postal workers to elect their coverage for next year runs from Nov. 11 to Dec. 9. During this period, postal service members enrolled in Medicare and integrated into the PSHBP through Medicare Part D Prescription Drug coverage may face higher drug costs due to late enrollment penalties if they have gaps of 63 days or more without creditable prescription drug coverage. Those without 'Extra Help' subsidies or continuous credible coverage are potentially affected by these increased costs.
OPM clarified that MPDP coverage must be 'equal to or better than' the PSHB plan drug coverage, with an exception for those living overseas. However, some retirees might still prefer their PSHB plan coverage.
The PSHBP's first open season is approaching, with postal workers and retirees set to elect their coverage for next year. While OPM's rules aim to create cost savings, some retirees may face increased prescription drug costs. The new program's impact remains a topic of debate as the enrollment period nears.
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