Postmaster General Pat Donahoe has claimed that he can cut the cost of USPS employee and retiree health benefits by $2.1 billion a year by setting up a separate insurance plan outside the federal FEHBP program. The suggestion has been greeted by skepticism, since it flies in the face of logic: how do you cut health costs by reducing the size, and increasing the average age, of your coverage pool; as well as eliminating the competitive “market” aspect of the FEHBP?
While the PMG has claimed that his program would be as good as, or better than FEHBP, doubts about that promise were immediately raised by the fact that the PMG and his top executives won’t be part of the plan- they will still be covered by FEHBP.
USPS officials may clear up some of the questions about their plans next week in a “webinar” set for Tuesday. The session is not, however, aimed at postal employees and retirees- its intended audience is the mailing industry:
From a USPS Industry Alert:
Please join Jeff Williamson, Chief Human Resources Officer & EVP for a presentation about the Postal Service’s proposed health care plan to control and significantly reduce health care costs for the Postal Service and our employees, annuitants, and their families, while providing health care benefits comparable to or better than provided through Federal Employees Health Benefits FEHB plans.