Postmaster General Pat Donahoe has sent a letter to the editor of Post & Parcel defending his proposed health insurance program for postal workers and retirees. The PMG admits in the letter that most of the claimed savings come from shifting costs to Medicare.
Not surprisingly, the PMG doesn’t explain why, if DonahoeCare is so good, he and his top executives will continue using the allegedly inferior, more expensive Federal Employee Health Benefit Program.
The GAO also estimated that if the proposed health plan had been implemented in 2013, most postal employees and retirees would have had similar or lower premiums compared to the selected Federal Employees Health Benefits (FEHB) plans, with similar or higher levels of coverage for many services. Under the Postal Service sponsored health care plan, a small minority of employees electing full family coverage would pay more for health care benefits, but the overwhelming majority would pay far less immediately, and all employees would pay less over their careers. On average, premiums under the proposed Postal Service’s plan would be 16 percent lower than FEHB premiums.