10/31/24 – In an article published by Government Executive 10/30/24 OPM admits that forcing you, USPS employees, retirees, and family members, i nto Medicare Part prescription drug coverage will save the PSHB program money. Their statement is below:

“While the commenters are correct that the PSRA [Postal Service Reform Act] does not explicitly require Part D-eligible annuitants and their family members to enroll in Medicare Part D as a condition of PSHB enrollment—and, indeed, CMS regulations afford individuals that are group enrolled into a Part D EGWP the right to opt out—the PSRA’s express goal is to create cost savings for the PSHB program, in part through shifting costs to Medicare,” the agency wrote. “OPM believes that requiring Part-D eligible annuitants and their Part-D eligible family members to obtain PSHB prescription drug coverage through a Part D EGWP, rather than through their PSHB plan, best advances Congress’ intent.”

OPM said in its regulations that its hands were tied by the law and congressional intent.

NARFE [Nat. Assoc. of Retired Federal Employees] writes:

The Office of Personnel Management (OPM) released the final rule regarding the Postal Service Health Benefits (PSHB) Program, clarifying regulations concerning Medicare Part B enrollment and Medicare Part D integration, among other points. NARFE’s comment letter in response to the proposed rule can be found here. 

In the final rule, OPM affirmed the Medicare Part B enrollment requirement exception for certain survivor annuitants and more explicitly clarified their expectation of “equal or better” regarding PSHB Medicare Part D prescription drug coverage when compared to the corresponding PSHB drug coverage, both of which were strongly supported by NARFE.

On the other hand, OPM also affirmed their decision that Medicare-eligible postal annuitants and their families would be automatically enrolled in their plan’s Medicare Part D prescription drug benefits, and if they choose to opt- out, those individuals would lose all prescription drug coverage under PSHB. NARFE did not support this provision in the proposed rule, as we believe in maintaining choice when considering healthcare coverage, but we are hopeful that with the promise of “equal or better” coverage, postal annuitants will retain quality drug coverage. 

Note: Make certain to read the letter written by NARFE President William Shackelford. You can find that letter here (PDF).

PEN believes there is no way to correct this situation since Congress, assisted by your unions and USPS, forced us out of the FEHB health insurance program and into their PSHB program. You can thank then if you want – we will never do that.

Here is a list of politicians that voted in favor of the Postal Reform Act:

Alphabetical by Senator Name: