GAO: “DonahoeCare” would increase expenses for postal workers and retirees, shift billions in costs to Medicare
The Government Accountability Office today released its assessment of Postmaster General Pat Donahoe’s plan to force all postal employees and retirees (excluding himself and his fellow executives) out of the Federal Employee Health Benefit Program, and into a plan run by the USPS. The GAO report confirmed that the USPS would save money under the proposal, but that those savings would come from shifting costs onto taxpayers, employees and retirees, rather than from actual net cost reductions.
First the “good” news:
GAO estimated that at least 63 percent of postal enrollees in the selected FEHBP plans would pay similar or lower premiums under the USPS plan
… some employees and retirees could have higher total costs— premiums and out-of-pocket costs for the use of care—due in part to differences in deductibles and maximum spending limits.
And that 63% figure means that over a third of enrollees would get hit with higher premiums along with any increases in out of pocket costs for care. Read the rest of this entry »