VA All rights reserved. Sale of Personal Data, Targeting & Social Media Cookies, Under the California Consumer Privacy Act, you have the right to opt-out of the 2309 in 2012, were all-out assaults on postal workers and the public Postal Service, causing the APWU to strongly oppose them. Q28: What is the Employee Group Waiver Program (EGWP)? One approach to encourage a voluntary switch, assuggestedby Walton Francis, a prominent independent economist in Washington, is to give both postal and federal retirees a contribution to a health savings account in tandem with their enrollment in a Medicare Advantage plan. Dr. Fauci Advises Young Scientists to Stay out of Politics, Stories of the Public Service Loan Forgiveness Program, I Am Against Retreat: The Louis DeJoy Ethos and the Future of the Postal Service, GovExec eBook: How The Federal Government Plans To Better Serve Citizens. However, pressing for it in this bill undermines its passage because neither the USPS nor the mailers agree to support this language. This is because adding Part B comes with a standard premium in 2022 of $170 per person per month. It also requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefi ts Program (PSHBP) within the Federal Employees Health Benefits Program (FEHBP), under which OPM may contract with carriers to offer health benefits plans for USPS employees and retirees. a vote of 342-92 as 120 Republicans joined all Democrats. The FEHB insurance program is likely to go through some changes over the next few years. As opposed to some postal reform bills over the last few years, H.R. What is not mentioned in the bill, but a possibility that could impact the rest of the federal workforce is the possibility that this reform package could become just the first step in removing federal retirees from the FEHB. user asks your browser to store on your device in order to remember information about you, such as your The USPS will pay 75 percent of the Medicare Part B premium the first year, 50 percent the second year and 25 percent the third year (only for retirees and dependents who did not enroll in Medicare Part B before the passage of H.R. Postal Service needs reform, but Congress needs to make sure its own measures are fiscally sound, avoid cost-shifting that only increases costs to the taxpayers, and expands, not contracts, personal freedom. The WEP and GPO continue to adversely impact millions of retired federal, state, and local public servants who are not reaping the full retirement benefi ts that they paid for during their working life. FLRA In the ten years since the passage of the PAEA, legislators from both the Senate and House of Representatives repeatedly introduced postal legislation. This amounts to over 250% of annual revenue. These calculations didnt include the impact of COVID-19 on the fund, and so it should be noted that this date could end up being even earlier. Feds Can Sign Up for a COVID-19 Hazard Pay Lawsuit Now. Once again, the federal retiree would have to be enrolled in Medicare. Q15: If H.R. browsers and GEMG properties, your selection will take effect only on this browser, this device and this The higher the retirees modified adjusted gross income (MAGI) in any year, the higher the retirees Medicare Part B monthly premium in the following year. Holidays Under current provisions of the law, there is a 10% late enrollment penalty for each year after a person became Medicare-eligible, but did not enroll. 13 Jul 2023 19:04:23 Judge temporarily blocks Mayor Adams from switching NYC retirees to If you do not allow these cookies, you will experience less targeted advertising. Postal Reform Questions & Answers - American Postal Workers Union The reality we face is that no legislation will survive in the current political environment without the support of the four major postal unions, postal management and a significant portion of the major mailers. In effect, Postal retirees not enrolled in Medicare Parts A and B would remain in FEHB once they turn 65. Major provisions of the bill would: Permit the Postal Service to raise rates on certain mail categories (direct spending savings of $8.6 billion); Authorize the Postal Service to phase out delivery of mail directly to business customers' doors (direct spending savings of $2.0 billion); All Rights Reserved. Will Postal Reform Uphold Promises to Postal Retirees? If a retired member of the Uniformed Services does not enroll in Medicare Parts A and B, their TriCare enrollment will suspended. This is because a retiree must pay (together with their FEHB monthly premium) a monthly premium for Medicare Part B enrollment. 756 would allow the postal only FEHBP plans access to the EGWP discounts. Federal retirees could choose to participate in an outside Medicare Advantage Plan in a particular year by suspending their FEHB enrollment and later returning to the FEHB program if they choose. The U.S. Office of Personnel Management (OPM) has released the interim final rule for the Postal Service Health Benefits (PSHB) Program, a new health insurance program within the Federal Employees Health Benefits (FEHB) Program. Q33: Different legislative initiatives over the years have attacked injured workers. Copyright 2022 Medigap.com. If the fund runs out of money, the risk has shifted from the Postal Service to Medicare recipients. Many health insurance professionals recommend that federal retirees enroll in both an FEHB health plan together and in the original Medicare (Medicare Parts A and B). The version of the postal bill that eventually passed balances the risk pools, and the Office of Personnel Management now estimates premiums should go down for postal and non-postal employees and retirees alike. New Years Resolution: Pass Postal Reform! This would reduce the Postal Service's health care expenses by hundreds of millions of . If you opt out we will not be able to offer you personalised ads and At present, OPM has indicated no plans to force non-postal retirees into Medicare Part B, but officials will certainly be watching the progress of iPOST, while monitoring participation rates to see if incentives increase the number of voluntary enrollments in SHI for 2016. In order to simplify the enrollment procedure, all Medicare-eligible retirees will be automatically enrolled. Yes. After passing in the house in February, the Postal Service Reform Act of 2022 was passed in the Senate with bipartisan support on March 8, 2022, with a vote of 79-19. More specifically, we use cookies and other tracking The bill will now be passed to President Biden to sign into law. No. Travel If Congress wants postal retirees to enroll in Medicare, while eliminating additional costs incurred by supplemental coverage, then Congress shouldencouragepostal retirees to enroll in Medicare Advantage plans, which provide comprehensive and higher quality coverage plus a hard cap on medical expenses. internet device. In short, retirement funds are not getting filled and retirees are going to be stuck without a pension or healthcare. Congress has all these options, or some combination of them, at their disposal. Medicare Part B. If you have enabled privacy controls on your browser (such as a plugin), we have Q9: If a postal worker is still an active employee after reaching the Medicare-eligible age of 65, will they have to enroll in Medicare Part B to maintain their FEHBP coverage? The lack of retiree healthcare fund at UPS and FedEx barely makes a dent in the overall funded status of its promises to retirees, but at the Post Office, the poor funded status of the. The mere fact that in recent years OPM has permitted some FEHB insurance carriers to offer Medicare Advantage Plans is an indication that OPM is encouraging retirees over age 65 to enroll in original Medicare (Medicare Parts A and B). RELEASE: OPM Releases Interim Final Rule for the New Postal Service Q17: These are tumultuous times and there is much talk of doing away with and/or privatizing Medicare. Regardless of the political party in power, all legislative efforts have failed and the pre-funding crisis continues. The proposal also comes at an inconvenient time. Postal Service would be required to also enroll in Medicare alongside their standard benefits package under a new Senate bill. Rights link. 756 becomes law, the APWU is committed to creating its own education program. Forcing Postal retirees to participate in Medicare may open the path to making Medicare mandatory for all federal retirees. The problem: This approach drives excessive utilization, which, in turn, results in significantly higher Medicare premium costs for beneficiaries and taxpayers alike. Q12: Will retirees have access to all the FEHBP plans that other federal employees/retirees have? For example, there would be a Blue Cross Blue Shield Standard plan for Feds and a separate one for Postal employees and retirees. There is no monthly premium cost for TriCare-for-Life (considered to be secondary coverage to Medicare which is considered primary coverage for a Uniformed Services retiree and a spouse). In return, it would require future Postal Service retirees to enroll in Medicare. The Postal Accountability and Enhancement Act (PAEA) required the USPS to create a $72 billion fund to pay for the cost of its post-retirement health care costs, 75 years into the future. When postal retirees are covered by both Medicare and their federal retiree health benefits plan, Medicare provides primary coverage, shifting costs for retiree health care from the Postal Service to Medicare. Yes, I want to receive occasional updates from partners. This is because Medicare has gaps in coverage that include the absence of protection from the financial devastation of catastrophic illness. Some bills, such as H.R. 760, the Postal Service Financial Improvement Act of 2017, allows the Postal Service Retiree Health Benefit Fund (PSRHBF) to invest up to 30 percent of its funds in a Thrift Savings Plan-like account. The APWU supports two companion bills introduced in the House of Representatives, H.R. You may exercise your right to opt out of the sale of personal Q25: How does Medicare Integration into Part D affect my premiums? Plan to fix Postal Service shifts retirees to Medicare, along with Postal Bill Would Affect Health Coverage, Agency Operation - FEDweek Annuity The House on Wednesday voted to end the U.S. It was introduced by the House Committee on Oversight and Reform Chairwoman Carolyn Maloney (D-NY). 756 passes, what happens to a dependent under 26 years of age who is currently covered under a FEHBP plan? April 12, 2022 at 9:20 a.m. No change will take place as a result of H.R. For doctors who opt out of Medicare, which is an extremely small number (less than 1 percent), your FEHBP plan will pay towards your medical expenses as set forth in its benefits and coverage rules. Postal Retirees are getting screwed when it comes to Medicare and FEHB Copyright 2022 Medigap.com | All rights reserved | 382 NE 191st Street, Ste 57537, Miami, FL 33179. FEGLI Preferences menu of your browser. Visit www.allaboutcookies.org What about retirees who are not yet 65 years of age? Medigap.com is privately owned and operated by Excel Impact, LLC. Full Medicare integration mandates Medicare enrollment for current postal retirees, requiring them to pay additional premiums through Medicare Part B for mostly duplicative health insurance or they lose their earned retiree health benefits. Under full Medicare integration, a 90-year-old postal retiree and his wife, living on a fixed income and already paying $7,301 per year for their popular Blue Cross Blue Shield standard plan, could be forced to pay another $3,564 a year to keep that coverage close to $11,000 in premiums. Q31: What about protection against further postal and plant closures? In return, this Act would require future Postal Service retirees to . By enrolling in a Medicare Advantage Plan, a federal retiree could save significantly by not having to enroll in separate dental and vision insurance. Eligibility and availability vary state by state. Current postal retirees could be given the option to enroll in Medicare without the late enrollment fees that currently apply. 5714) passes, a retired postal couple would be hit with an extra $4,000 per year in health insurance premiums for Medicare Part B and Part D." Only 36 FEHB health plans nationwide would be available to postal workers and retirees. Enacting some form of this proposal would provide a substantial source of financial savings for the Postal Service by alleviating much of its remaining financial obligation for future retiree health benefits. How the Postal Service Reform Act Could Affect Federal Retirees OPM has provided some detailed data regarding 2021 FEHB premiums to help in preparing for the 2020 Open Season. In order to have a healthy, sustainable, public Postal Service, legislation is necessary to protect postal customers and postal workers from USPSs current financial crisis.
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