From USPS News Link – 4/12/22
The Postal Service reform legislation that President Biden signed into law on April 6 will involve changes to employees’ health and retirement benefits.
USPS understands that employees have many questions, so here are a few things to know:
• The law establishes the Postal Service Health Benefits (PSHB) Program, which will provide health insurance to USPS career employees, retirees and their dependents, beginning Jan. 1, 2025.
• The PSHB program, to be administered by the U.S. Office of Personnel Management, will be structured similarly to the Federal Employees Health Benefits (FEHB) Program. The employer/employee cost-sharing contributions for premiums will be determined by the Postal Service’s collective bargaining and pay consultation processes.
• USPS employees and retirees can make their PSHB plan selections during the open season benefits enrollment period that occurs in November and December 2024.
• Beginning in January 2025, the new law will require all newly Medicare-eligible USPS annuitants and their Medicare-eligible covered family members to enroll in Medicare Part B to maintain their postal health coverage.
The Postal Service will provide employees and retirees with more detailed information about the PSHB program in the months to come.
From PEN:
I think all of us know and understand that the larger the pool of employees or retirees covered under a health plan the lower your cost, as a health care subscriber, will be and probably you will have greater the coverage. Current postal employees and retirees have the option of being covered by a Federal Employees Health Benefits (FEHB) Program. OPM states the following regarding the subscriber pool under FEHB:
“The Federal Employees Health Benefits (FEHB) Program became effective in 1960. It is the largest employer-sponsored group health insurance program in the world, covering over 8 million Federal employees, retirees, former employees, family members, and former spouses.
Please explain to me how a smaller subscriber pool will benefit you and your family…how?
In their article, above, USPS states “The PSHB program, to be administered by the U.S. Office of Personnel Management, will be structured similarly to the Federal Employees Health Benefits (FEHB) Program. The employer/employee cost-sharing contributions for premiums will be determined by the Postal Service’s collective bargaining and pay consultation processes.” The last part really worries me – it also explains to me why postal unions were so in favor of passing this act. I would certainly prefer a pool of 8 million determining my health insurance coverage and costs verses a greatly lessened pool of possible subscribers, USPS, and postal unions.
Rick Owens
PEN
What’s next? Remove Postal Employees and Annuitants entirely from FERS and OPM? Then open a Postal Service Retirement Management System and Office? Has anyone considered a Class Action Suit to prevent further degradation of our Retirement Benefits? Since this is governed by Law, is a Class Action even possible?
Good post Richard. I’d like to know the answer to your question as well.
Why is USPS offering Medicare part D coverage in 2024. The reform act is not enforced until 2025. Will part D be required in 2025? Is choosing this a wise choice if I already have creditable coverage through current insurance?
We’re sorry – we cannot answer your questions/concerns because neither USPS nor OPM will respond to any questions we ask them. PEN
Is anything being done to try to stop this PSHB? I just found out about it from a postal flyer in the mail. It was kept pretty quiet if you ask me, which can only mean it is quietly being pushed through because postal workers will be paying more for less coverage. I agree that a smaller pool of members in PSHB will equal higher costs for us postal workers being forced to take it. Is there anything happening legally to stop it? The least OPM can do is let those already enrolled with FEHB keep their enrollment and health care plans, especially those already in retirement who are living on fixed incomes and have their life all planned out. I’m too damn old to be worrying about such things in my retirement.
Thank you for your comments, Frank. We agree with you totally…but, the bill has already been approved by the democrats and it is now law. Postal union were one of the largest groups pushing passage of the Postal Reform Act that created this devil called PSHB. Bottomline – neither the unions nor your democrat representatives give a damn about you.
How could they leave USPS employees out of the equation by not even informing us about what they were doing? There needs to be a movement by retirees and employees hitting the streets and letter campaigns to protest against this action. We need to let everyone know how wrong this is and stop them in their tracks before it is implemented.
There were articles regarding Health Insurance well before the Affordable Care Act was written.
This was before many young Folk feeling immune from illness and injury were compelled to enroll in an Heath program/plan
I recall when I was young [early 20s] to NOT seek an Health Plan until at least two decades had passed. The wisdom from the WISE at the Postal Service, to me advised, to ENROLL NOW because dollars from Health program premiums benefit/support – us all – as we age.
Then, recently, the Affordable Care Act – forced young employees/people into the ‘health coverage pool’. This IS massive amounts of ‘NEW’ money.
Why when we all know – the baby boomers are an major part of the population now – is legislation being passed to make Health services unaffordable. With all the ghastly things that went on in other Country’s during W.W.II – it is hard to believe such legislation/tyranny is even thought of.
It was also stated those paying around $400.00 per month were paying at the highest cost for health coverage. Then came Co-Pays on every medical service which increased our costs.
I do not know how where you are generating the data for your dismay … because from what I see: I can not/will not be able to afford to pay for Health Coverage IF I live to 2025 at age of 72.
And many of ‘you’ ‘us’ will NEED to END Life Insurance levels to pay for Health Coverage – which means your Spouse and Children will be out in the cold when you take your last breath..
And remember it is Law to have Health Coverage which equals being put between an rock and an hard place.
But don’t read it [that new 2000 page legislation] – just approve it and see what is in it later.
For those of us who didn’t sign up for part B & now want under this SEP in the PSHB, I wonder how it all will work. The Post Office has no idea how many people will do this, nor the amounts of penalties they will have to pay on your behalf. They are working with an unknown factor, so how can they say they will cover all late penalties? In my case it would be a penalty of 140% !!! Yikes, & that’s just 1 person. Imagine if a lot of people that follow this offer of penality free premium —
it will turn out to be quite expensive. How will they be able to pay ” whatever ” all the totals of everyone’s late penalties are ?? They are dealing with an unknown here, but yet willing to pay whatever it costs to get you to sign up for part B. Russian roulette if you ask me. But, they will probably “default ” on paying that too sometime in the future. Just like they already defaulted on pre paying for retirees health insurance, so the government answer to this was to bail them out & forgive that debt, eliminate that plan & then they had to “create” this new PSHB in order to start with a clean slate. And to those already paying a penalty, why can’t they to be included to get the SEP & have their penalties forgiven. No justice & NOT fair !!!
If I sign up for Medicare in 2025 and my wife is not eligible yet do I have to pay her premium for PSHB until she is eligible for Medicare.
Michael – that would be a question for OPM since they will administrate the program. However, I would ASSUME that you would.
I retired from the postal service in 2011 with 37 years of service which included military. During those years prior to working for the postal service, I worked other jobs and paid in enough to be eligible for social security. Started working for USPS in 1979. Then Reagan came along with WEP which cut our social security benefits. I always thought we got screwed on that. I was 63 at the time of retirement. Once I reached 65 and was eligible for Medicare, I also signed up for part B because I knew if I did not, I would be stuck with a penalty if I signed up later. We also have BC/BS PPO plan which has great coverage with limited dental. With the Medicare Part b premium and Blue Cross premium, my spouse and I pay nearly $800 per month in health insurance premiums. I keep hearing from Biden saying the Inflation Reduction act was going to lower my health care premiums. Never happened. My health care premiums have never gone down. Frankly, I have little confidence in this new plan. We’ve been BS’ed so many times .
Just remember the unions and selling us injured disabled employees who
Came to work everyday we’re wales out and forced to starve
in response to daves remark about joe biden let me freshen your memory it was Ronald Regan who signed to take 60% of my ss, getting scrwed by washington politicians is the only bipartisan legislation they pass
If you are already retired,& didn’t sign up for part B when you could have you have a choice. You can opt to get part B with NO penalty. ( but how the PO will figure what that is, is questionable) Medicare would then be your primary payer. You could then enroll in the new PSHB plans offered. But we don’t yet know what they will be or the premium cost. So yes, you would pay 2 premiums. However, according to the NALC if you choose NOT to enroll in part B, then you can continue to choose NON-POSTAL insurance coverage you probably have. I have GEHA that uses Aetna as it’s administrator for where I live.
It is ONLY new hires, or employees that are still working that will be REQUIRED to sign up for part B when they become eligible to sign up for Medicare or retire. They will then be able to pick a plan Under the new PSHB.
REGARDLESS, there is a lot of information we still need to make a decision on this & it’s still many months until we get that information. I will say it’s been my belief & experience that when ever any government agency comes to you offering “a better deal”–LOOK OUT. Ultimately, it’s not to help you or reduce costs, but to lower their own costs & lower services that we all worked hard for & earned. Just my 2 cents!!
I retired after 38 creditable service in 2006.
I worked 10 years under Social Security in order to receive that as well, retiring for good in 2016.
Each year I would receive a SS printout showing what my SS monthly payment ‘should’ be.
In 2015 when turning 65, I applied for Social Security only to find out that I only get 40% of the amount my monthly statement said I should get because I was a ‘double dipper’.
Well dammit, I paid the full amount INTO both retirements and yet they steal 60% of what they said I should have gotten.
If you actually think that this ‘new and improved’ PSHB plan is going to work better for you, you are kidding yourself.
The Postal Service and the politicians will work this out to their advantage like they always do, leaving those of us who did our jobs for 30-35-40 years out in the cold.
They will steal your money so they can give more of it to the lay-abouts in order to get their votes.
I didn’t and I don’t trust any of them. Period.
Well said buddy. I too retired from USPS after 35 years. And, I paid SS for way over 30 years. WEP took almost all of my SS benefit after they also penalized me 30% for my Medicare. The postal unions fought hard to get the PSHB passed – why? Well, they sell insurance…remember. Rick Owens – PEN
Re those kicked out of FEHB at 65, and being told they must buy Part B: what do they get for leaving? I have see nothing on this. Robert
Robert – as far as I can tell (and I may be incorrect), you will be required to enroll in the new Postal Service Health Benefits (PSHB) Program. What will you get? In my mind…nothing. To ME – it is all a damned gimmick that all of the democrats and postal unions pushed on us. Read here also: https://www.keepingposted.org/postal-service-health-benefits.htm
Jeff,
I’m 57 and was planning on retiring at 62. With this new insurance plan, I will loose my BC/BS. My understanding is if I retire at 59 I will be able to keep my insurance and not be forced to take Medicare part B. I read above remarks about BC/BC premiums continuing to go up and also applying for Medicare part B. Is better for me to keep my BC/BS and retire in 2024 or wait till I’m 62. If anyone would share what they payout now for medical premiums or cost at retirement will be helpful. Unfortunately, a letter carrier brother who retired early is getting hit with the cost of insurance plus all the other cost ie… co pays, tests and is considering going back to work to cover costs. Responses will be greatly appreciated. Thanks
if Joe Biden was willing to sign it, it can’t be good for us retired postal workets.
I am a retired Postal employee for 6 years. I am already on Medicare Part A&B which I pay a premium for Part B. I also have Blue Cross/Blue Shield so yes you pay 2 premiums. Even tho I was Civil Service I was fortunate to have worked to get Social Security quarters to pay my Medicare Part B premium . I have not had any problems and I have chronic conditions which require medication, I am dreading this change. Blue cross/ blue shield standard is excellent. I hope I will be able to keep it.
I am a CSRS retiree. I worked 1/2 my career working for the Department of Defense and the other 1/2 working for the Postal Service. Will I be grandfathered into the FEHBP, which I like. The government/postal service never does anything to help people, they always take away. Look in 1984 and the FERS program. I don’t see this doing me any good. I think the union sold the Postal Workers down the river. I also have medicare b. I took it out 9 months after my 65th birthday. They told me that I wouldn’t pay the xtra 10% because I did it within a year. That was a lie, I’ve been paying the 10% for years. Am I going to get back the extra money I paid all those years. I see this costing anybody involved involved less coverage at a higher cost. NOT GOOD!
Ed – I am with you – I see nothing but less benefits from this new Postal Service Health Benefits (PSHB) Program and possibly cost even more. I cannot advise you on any of this – follow the link I provide below – it will explain some of it to you. Like you I pay a late enrollment penalty for my Medicare – in fact, I pay 30% more because I waited 3 years after 65 to enroll. I have appealed this penalty (in February 2022) but SSA refuses to answer my appeal. I’ve faxed them, wrote them, called them etc…no response at all to my appeal. Good luck – we will need it. Rick – PEN Here’s the link you should read: https://www.keepingposted.org/postal-service-health-benefits.htm
Federalretirement.net is where I found the information. Then I called BCBS they informed me to call SS to get the form .
My husband turns 65 in December 2022. We finally found out there is a form you get from social security that you sign to opt out of part b because he will be covered under my Federal blue cross . I listed my BCBS # on the form. Stating he was covered under my insurance. We could have also suspended his BCBS & took part b for him & I could have done single coverage for me . This exempts him from penalty.
I didn’t join part b when retired from postal service civil service in 2002. Will my part b penalty be waived when I sign up for pshp? Does the the PSHB cost or is it free.
I retired in 2012 at 65 I tryed to get into medicare I was told beacuse I did not have 40 quaters for ss I would have to pay 274 a mt for part A. I pay all my working life into medicare and only have 34 quaters for SS .I know I not the onlyn one going though this. where is the fairness and now is the post office going give us some cut rate ins after 36 years of work
I am CSRS Offset, retired October 2018, eligible for Medicare December 2022 and currently under an FEHB plan. I receive primary care from the VA as I am 20% disabled.My spouse is younger than myself and not eligible for Medicare for several more years. I must make a choice of electing Medicare Part B by December 1, 2022. The goal of everyone is to maintain the best health care at the best overall cost. According to the new bill OPM is tasked with educating those eligible for a smooth transition to the PSHB. To date I have reached out to OPM and their website (currently has very little information). My understanding is if I chose NOT to elect Medicare Part B at this time (Approximately $170 premium) the 10% annual penalty (assessed when you are mandated to sign up for Part B) becomes the burden of the Postal Service. I pay virtually nothing in deductables for my own care now, opting for Part B would change very little, and in the case of my spouse nothing changes with Part B election. The question I ask myself is “Why would I choose an option that costs me $170 more per month and does not save me money or improve my care?” It is understood during 2024 open season a plan choice (PSHB plan) must be made along with mandatory enrollment in Medicare Parts A & B. I have read the bill but with change am always a little reluctant to make a life changing choice without being assured it is the right one. The new PSHB plan does not go into effect until Jan 2025 (2024 plan election) and so far I, like many others, have not had any formal notification a change is even in the works. I feel fairly confident if I opt out on Part B the penalties for later enrollment are a burden other than my own, please respond if I am missing something. Thanks for the soapbox
Jim – I believe you are correct…BUT, the content written on this subject is, too me, very confusing. I retired from USPS in 2007 – as with you, when I turned 65, Medicare eligible, my wife was too young for Medicare…AND, she had very good B/C B/S coverage with her employer as well as coverage under my FEHB B/C.
So, I chose NOT to enroll and save myself the cost of Medicare. Well, did not work out so well for me. When my wife retired and lost her insurance – which also covered me along with my FEHB B/C I decided to enroll in Medicare. Long story short…I now have to pay $220.00 per month for Medicare each month when most others pay $170.
I THINK you are correct that you MAY not be charged a late enrollment penalty…but, what I would like to know is – why not forgive my late enrollment penalty also? This is just not fair to me and to thousands of others.
my husband retired as a civil service postal employee. how will this affect him.? he has retirement from civil service where soc sec was not paid in but did pay into civil service retirement. he also worked a second job where he paid in enough to earn a 1300 a month soc sec check, but he only gets 40% of that due to the windfall act. he did not take out part b because he had his GEHA . HE STILL WORKS PART TIME at age 70. how will this affect him? ive seen no mention of civil service retirerees
Jenifer – I cannot advise you on what effects the stupid Postal Reform Act will have on your husband – I can say that it will not be good IMHO.
I can tell you that if your husband does not enroll in Medicare NOW he will pay even more later for it later. SSA law states that if you do not enroll in Medicare around your 65 birthday he will pay a 10% penalty (added to the cost of Medicare) for every year he has not enrolled.
If he is 70 then he already has a 40-50% penalty that will be added to his cost for Medicare. I did not enroll in Medicare at age 65 – I waited 3 years before enrolling and now I pay 35% more for Medicare than most others…it makes me FURIOUS. BUT – do not take my word for it – do some research for yourself…have your husband call SSA…if you can get them to answer the phone.
Read this article – it may help:
https://www.govexec.com/pay-benefits/2022/03/postal-reform-measure-could-affect-all-federal-retirees-health-benefits/362995/
I am a annuitant with Medicare as my primary and GEHA through FEHB as my secondary. How will PSHB adversely or not adversely affect my current Medicare and FEHB plan GEHA?
Hi,
I have been a letter carrier sub for 10 months. Am I eligible for medical benefits? I have asked this question to my PM who always seems to busy to answer my question. I thought I would be eligible after 60 days but maybe that does not apply to subs. If I am eligible, how would I go about applying for it? Thanks
Candace – We cannot answer questions concerning USPS benefits for obvious reasons. We suggest you read the USPS ELM (link below) and ask a local union official:
https://about.usps.com/manuals/elm/html/elmc5_011.htm
For employees who have already retired, and wish to now purchase Medicare Part B after years of not doing it, will the penalty be waived? And is there a window of opportunity?
Patty – that is a good question that I have been trying to get an answer to but no agency, or news media, wants to provide the answer. The postal unions were all behind the movement to past the Postal Reform Act because they already offer insurance to postal employees – that is WRONG! Anyway, read the following/below: Rick Owens – PEN
Follow this link to read the Postal Reform Act bill:
https://www.congress.gov/117/plaws/publ108/PLAW-117publ108.pdf
Find page: 11
Find: “(3) TREATMENT OF PART B LATE ENROLLMENT PENALTY FOR
INDIVIDUALS ENROLLING DURING SPECIAL ENROLLMENT
PERIOD”
Now – read it yourself and let me know. by posting here, how you read this stupid bill. I can tell you that I enrolled in Part B 3 years after I became eligible (late enrollment) and I have to pay a 30% penalty each and every month. It is deducted from my SSA benefit.
My opinion? If anyone is forgiven for enrolling late for Medicare Part B and their penalty is waived then waive the penalties for all postal annuitants no matter when they enrolled.
Effective 2025 the FEHB will be replaced with the PSHB (Postal Service Health Benefits)– All postal retirees who’re eligible to enroll in medicare part B, will be REQUIRED TO ENROLL in medicare part B, in order to enroll in one of the health plans of the newly formed PSHB (Postal Service Health Benefits plans).
Important question— Will retires enrolled in a postal service health benefit plan and medicare part B, need to pay two premiums -one premium for medicare B and one premium for the postal service health plan- Two health cost premiums?
Because unless either PSHB plan is premium free ,or medicare part B, that eligible retirees will be required to have, is premium free, they are talking about making it very expensive and unaffordable for postal employees to have health coverage under the upcoming postal health reform. Because as it stands now,no postal health plan is premium free, Medicare part B is never free either.
Lorraine – I cannot answer your questions, but I am retired from USPS (2007) and I have to pay for my FEHB B/C B/S and I have to pay for my Medicare. In fact, because I did not enroll in Medicare at age 65 I have to pay a 30% late enrollment fee each and every month – my Medicare cost me just over $220.00 every month. Here’s a link to a breakdown on this new PEHB plan that explains some of this: https://www.narfe.org/wp-content/uploads/2022/03/PSHB-Summary-and-FAQs_FINAL-3-24-22.pdf
The subscriber pool for this new PEHB plan will be considerably smaller than the FEHB that we’re currently under. They claim this new plan must mirror the FEHB plan but I really doubt that. It just is not right. Thanks Biden and company.
As with anything the PO has done in the past, you can bet if they want to form their own system it will be to their benefit and not in any way to the employees. I foresee a plan with fewer benefits and higher premiums.
Thanks Phil – you are correct. Also, don’t forget…all of the unions were behind this as well – and, they offer health insurance coverage. It stinks. Smaller pool of subscribers (=) smaller benefits at a higher cost.
Anyone have any idea of the cost of COBRA for a sub? We cannot get any answers. If you don’t, do you know the %of cost USPS is paying? That would answer the question.
I understand that there will be no 10 percent a year penalty when current retirees are forced into part b.
However how about those that are currently paying 10, 20 ,30 percent penalty.
should we drop out and then wait to be forced back in?
Tim – I am right there with you. I retired from USPS in 2007 after 35 years’ service. I did not enroll in Medicare when I turned 65 because I could not afford my Federal B/C coverage to cover myself and wife and pay for Medicare as well. So, I enrolled 3 years later – SSA has charged me a 30% penalty every month since then. I now pay $220.00 per month for Medicare.
I recently, January 2022, submitted a redetermination request with SSA because I found out that if you were covered under a large group health plan during the years you did not enroll then you should not be charged a late enrollment penalty. Read here:
https://www.medicareinteractive.org/get-answers/medicare-denials-and-appeals/premium-appeals/appealing-the-part-b-late-enrollment-penalty
Unfortunately, being unaware of the requirement to enroll in Part B is unlikely to be a successful argument for an appeal. However, the following are reasons to appeal that may result in the elimination or reduction of your penalty:
You had job-based insurance during some or all of the time period in question
Call your former employer or plan and ask for a letter proving that you were enrolled in coverage. Make sure to attach this letter to your appeal form. Other forms of evidence include income tax returns that show health insurance premiums paid, W-2s reflecting pre-tax medical contributions, pay stubs that reflect health insurance premium deductions, health insurance cards with policy effective date, explanation of benefits paid by health plan, and statements or receipts that reflect payment of health insurance premiums.
After 6 months SSA finally responded last week via a letter asking me to get my supervisor to complete their form stating the dates of coverage for my FEHB insurance coverage – I DO NOT HAVE AN EMPLOYER! So, I called OPM who handles our retirement. They said to fax the form to them, and they will complete it and submit same to SSA. I am hoping that OPM will complete the form correctly and submit correctly to SSA. I have no idea if it will take another 6 months to hear from them. Good luck to you. Paying the late enrollment is so unfair and so is WEP that diminishes our SSA retirement.
I predict second class expensive healthcare compared to regular federal employees. With the Union manipulating inservice coverage cost to make healthcare outside the APWU and it’s plan unaffordable. Have you seen what happens to the current low cost APWU plan when you retire$$$? Retirement at 56 with 30 years service may no longer be affordable. Anyone retiring before 65 is in for a surprise. People starting their careers or with limited years of service should try for government employment outside of USPS.
You are absolutely correct. The Biden administration and the unions got what they wanted…and we’re left with less coverage and more cost.
Do im going to lo loose my FEHB that im enroled now.?
We do not really know. USPS may know.
Will this be mandatory or will it be like FERS where CSRS have an option? I just dont trust them and any change will not be good for retiree’s. Look at FERS….
Thank you Rick, for all you do.
You’re so welcome oopsy….I mean Jeff 🙂
Any USPS source of information on anything should be treated as they have proven time and again in the past, how it should be treated; completely fabricated, lies, and misinformation.
And Rick, you are correct to be concerned about the highlighted statement you mention; notice how that was never publicly mentioned before ? Typical USPS smoke and mirrors. Even worse, aided and abetted by the NALC.
Also, don’t forget. The USPS has been caught numerous times in the past illegally accessing postal employee health records.
Imagine how it will be now that they are in charge of your health plan ?
Deceive, deny, deflect, the USPS mgmt. mantra. Don’t forget this change is only a shell game, shifting USPS health care costs onto taxpayers via Medicare.
Remember that next time they spout their p.r. b.s. of not operating via tax dollars (which was also a lie before this anyway).
I am so glad my wife was also a fed employee and we switch to her FEHB the first time the USPS tried this crap, several years back.
Thanks Jeff – very good points.