News from Washington Can postal reform make it to President Biden's desk? The House of Representatives - NALC
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News
News from Washington
Can postal reform make it to President Biden’s desk?
T
he House of Representatives which was enacted through the Postal
and the Senate have reached an Accountability and Enhancement Act of
important phase with regard to 2006, in line with the bipartisan USPS
postal reform. As letter carriers will Fairness Act (H.R. 695 and S. 145).
recall, the House advanced the Postal In addition, the legislation maximiz-
Service Reform Act (H.R. 3076) out es participation in Medicare once active
of the Committee on Oversight and postal employees (as of Jan. 1, 2023) re-
Reform in May, as reported in last tire and reach age 65. Annuitants as of
month’s Postal Record. Jan. 1, 2023, will be given the choice of
The Senate companion bill (S. 1720), whether to remain in the existing Fed-
which mirrors H.R. 3076, was intro- eral Employees Health Benefits (FEHB)
duced after the last issue of The Postal Program or participate in the postal
Record went to print and is now before version of the program that requires
the Senate. The bill is being led by enrollment in Medicare Parts A and B
Homeland Security and Governmental —and retirees over the age of 65 who
Affairs Committee (HSGAC) Chairman have chosen not to enroll in Medicare
Gary Peters (D-MI) and Ranking Mem- Part B will be given a one-time oppor-
ber Rob Portman (R-OH). tunity to do so with no late-enrollment
Including Peters and Portman, the orig- penalty. Annuitants who elect to remain
inal co-sponsors of the Senate bill consist in the existing FEHB Program will not
of 10 Democrats and 10 Republicans: Tom be required to enroll in Medicare. NALC
Carper (D-DE), Maggie Hassan (D-NH), also successfully lobbied to ensure
Joe Manchin (D-WV), Alex Padilla (D-CA), exceptions to the requirement to enroll
Jacky Rosen (D-NV), Brian Schatz (D-HI), in Medicare for those covered under
Krysten Sinema (D-AZ), Tina Smith (D-MN), other insurance arrangements (such
Ron Wyden (D-OR), Roy Blunt (R-MO), as under the Department of Veterans
Richard Burr (R-NC), Shelley Capito Affairs, or VA) and for those who live in
(R-WV), Susan Collins (R-ME), Steve places where there are not Medicare-
Daines (R-MT), Josh Hawley (R-MO), Mike participating providers.
Rounds (R-SD), Dan Sullivan (R-AK) and S. 1720 also contains language that re-
Thomas Tillis (R-NC). quires the Postal Service to maintain “in-
With the partisan makeup of the tegrated” delivery of both mail and pack-
Senate evenly split 50-50 and legisla- ages six days a week. If this bill becomes
tion needing 60 votes to overcome a law, the six-day requirement would be a
filibuster, having 10 original Repub- statutory mandate. Since 1983, the policy
lican co-sponsors is an important mandate to deliver mail six days a week
accomplishment. If all Democrats sup- has had to be renewed annually in the
port this critical legislation, it could be appropriations process. This bill would
signed into law. As this magazine was eliminate the need for the annual fight to
going to print, an additional Republi- maintain six-day delivery.
can, South Dakota Sen. Kevin Cramer, In addition, the bill: requires the
joined the growing list of co-sponsors. Postal Service to report semiannu-
Just like the House bill, S. 1720 would ally to Congress on the implementa-
repeal the mandate that the Postal tion of USPS’s 10-year strategic plan;
Service pre-fund decades’ worth of provides for a public dashboard using
health benefits for its future retirees, nationwide delivery metrics to track
4 The Postal Record July 2021
In the February 2021 issue of The
Postal Record, a $500 contribution
to the Letter Carrier Political Fund
from Joseph McHale should have
been listed under Greater East Bay,
CA Branch 1111. McHale wishes to
make the contribution in the name
of his deceased father, Joseph
McHale Sr., a postal worker.
delivery performance; directs the House Committee on Ways and Means, the health plan they choose, and if re-
Postal Service to use the most efficient and the Senate Finance Committee. tired upon reaching Medicare age, they
means available to transport mail, NALC has been educating lawmakers would be enrolled in Medicare (absent
likely switching from air to ground about the fundamentals of the Medicare the exceptions discussed below).
transportation; mandates a Postal proposals and correcting rampant mis- Active postal employees (as of Jan. 1,
Regulatory Commission (PRC) review information about the bills as they move 2023) who are 64 or older and all current
of competitive and non-competitive forward in the two chambers. postal annuitants as of that date would
products and a study of nationwide be given the choice of whether to join
processing efficiency of flats (maga- Explanation of the health care the postal-only version of FEHB plans
zines and catalogs); provides the PRC provisions of H.R. 3076/S. 1720 (integrated with Medicare) or to remain
with independent budget authority Many letter carriers may have ques- in the non-postal version of such plans,
through the Postal Fund, prevent- tions about the FEHB Program and depending on whether they want to en-
ing it from being directly affected by Medicare provisions included in these roll in Medicare Part B, which currently
sequestration/shutdowns; provides bills. Unfortunately, misinformation carries a premium of $148.50 per month.
a special postage discount for news- about them is common. Let us start The reason most annuitants already
papers; and consolidates the Postal with the proposed changes in FEHB. choose to enroll in Medicare Parts A
Service’s and the PRC’s Inspectors and B when they turn 65 is that enrolling
General into a single office. FEHB reform virtually eliminates any out-of-pocket
“NALC appreciates Chairman Peters Under the legislation, postal costs such as deductibles and co-pay-
and Ranking Member Portman’s intro- employees and annuitants would ments. However, under the proposed
duction of this important legislation participate in a restructured FEHB law, current annuitants (as of Jan. 1,
in the Senate,” NALC President Fredric Program. All major plans now avail- 2023) would decide whether to enroll.
Rolando said. “NALC recognizes the able to participants—Blue Cross Blue Those who do not want to enroll in Medi-
senators who have put partisan ten- Shield, the NALC Health Benefit Plan, care would remain in the non-postal ver-
sions aside to show strong support for Kaiser, etc.—would continue to be of- sion of their FEHB health plan—and the
this bipartisan legislation that is crucial fered to postal employees and retirees Postal Service would continue to pay the
to help restore financial and operation- as a postal-only version of their FEHB government’s share of their premiums.
al stability to the Postal Service.” plans. But their premiums would be The postal-only plans in FEHB
significantly reduced, because postal would be regulated and operated
The road map through Congress participants would be placed in a in the same way that current FEHB
As this publication was going to separate risk pool with new rules re- plans are regulated and operated
print, both the House and Senate were garding Medicare enrollment. today. There would be an annual Open
aiming to continue working toward The new legislation would not Season that would allow participants
passage in each chamber. The House change a current postal annuitant’s to choose among a range of plans with
had set a goal of bringing H.R. 3076 to right to decide whether he or she wants separate rates for postal and non-post-
the floor this month, and the Senate to enroll in Medicare. Although 90 al participants.
HSGAC was in the process of schedul- percent of current postal annuitants
ing a markup of S. 1720. Despite the
Special protections
are automatically enrolled in Medicare
growing bipartisan support for both Part A (hospital services) and nearly NALC lobbied aggressively for the
bills, the road map to their becoming 80 percent of them voluntarily enroll in inclusion of special exceptions that
law is not a straight one. Medicare Part B (medical services), no are contained in the legislation. Future
The bills must get the blessing of some current annuitant would be required to postal annuitants who do not need
key committees regarding the Medicare enroll in either Medicare Part A or Part B. Medicare because of coverage by VA or
Part A, B and D provisions, which fall All active employees under the age of by another non-FEHB program, or who
under the jurisdiction of the House Com- 64 (as of Jan. 1, 2023) would be auto- cannot use Medicare because they live in
mittee on Energy and Commerce, the matically placed in the postal version of a place (for example, overseas) without
July 2021 The Postal Record 5
News
Anton Hajjar
News from Washington (continued)
Medicare providers, would be allowed to are less costly to insure, and allow the tants enrolled in the FEHB program
enroll in the non-postal version of their Postal Service to avoid its full financial would be reduced by about $1.6
FEHB plan. We also worked to include obligation to those retirees who choose billion over the 2015-2024 period.
a provision to give current annuitants not to enroll in Medicare. Finally, USPS would not be able to
who did not enroll in Medicare Part B None of this is true. In fact, non- cherry-pick whom to insure—it would
at age 65, but who now wish to do so, a postal FEHB premiums would decline pay the full cost of all postal participant
one-time opportunity to enroll in Part B somewhat (by about 1 percent), because premiums, whether participants are in
without the late-enrollment penalty that the non-postal workforce is younger
the postal or non-postal version of their
currently applies. That penalty, which and less expensive to insure than is the
FEHB plans. NALC, along with other
raises Part B premiums by 10 percent postal workforce. A recent professional
postal unions, addressed these false
for each year after age 65 that a retiree actuarial analysis of the proposed FEHB
claims in-depth in a letter to the president
delays enrollment, is costly. reforms conducted by PRM Consulting
of NARFE. Read the letter on nalc.org.
Group for the Postal Service demon-
As the legislation progresses in the
Why prospective Medicare strates this clearly. That analysis mirrors
integration makes sense House and Senate, NALC will need
the findings of the Congressional Budget
the full engagement of letter carriers
It makes sense to create postal-only Office (CBO) review of S. 1486 (the Postal
to help educate members of Congress
plans within FEHB and to maximize Reform Act of 2014), which also included
on how this legislation would protect
Medicare participation because it FEHB and Medicare integration reforms.
employees and our essential network.
would reduce health care costs for both The CBO Cost Estimate for S. 1486 (July
Keep an eye out for more information
the Postal Service and participants. 14, 2014) states on page 14:
in the “Government Affairs” section
FEHB premiums would be reduced for The effect of the legislation on fed- of nalc.org and on the NALC Member
active and retired postal employees eral on-budget payments for health App. Members are encouraged to in-
alike. Because Medicare is the first- insurance premiums in the FEHB stall the app on their smartphones so
payer insurer for its enrollees, the costs program would partially offset the that NALC can communicate with you
covered by postal-only FEHB plans increase in Medicare spending. when the legislation is released and
would be reduced, thereby reducing Premiums charged to non-postal when it moves in the halls of Congress.
the premiums for postal employees. enrollees in the FEHB program
This would reduce the Postal Service’s would be based on expected health Hajjar confirmed to USPS
health care expenses by hundreds of costs of the employees, annuitants, Board of Governors
millions of dollars annually and reduce and dependents remaining in the The Senate approved the nomination
its future liability for retiree health ben- FEHB program after the health care of Anton Hajjar to serve on the Postal Ser-
efits by approximately $50 billion. costs of USPS workers, annuitants, vice Board of Governors (BOG) on May 28.
and their dependents are shifted to Hajjar holds a term that is effective
Battling misinformation the PSHB program. Because non- immediately and expires on Dec. 8,
Since the introduction of these bills, postal enrollees cost FEHB plans 2023. Hajjar’s confirmation comes one
misinformation about the Medicare pro- slightly less than postal enrollees, month after the Senate confirmed Am-
visions included in the legislation has on average, CBO estimates that ber McReynolds and Ronald Stroman,
circulated. Most notably, the National premiums in the FEHB program and fills the final vacant BOG seat. The
Active and Retired Federal Employees would be lower than under current Postal Service now has a full BOG for
Association (NARFE) has distributed law. Thus, the amount the fed- the first time in more than a decade.
inaccurate information about the bills. eral government would contribute “NALC congratulates Anton Hajjar on
NARFE has falsely claimed that these toward its share of annuitant this important confirmation,” President
bills would cause the premiums of non- premiums would be lower. Rolando said. “We look forward to work-
postal federal employees and annui- CBO estimates that federal ing with a complete BOG for the first time
tants to increase, allow the Postal Ser- payments for health insurance in years, and we appreciate the Senate’s
vice to “cherry-pick” individuals who premiums for non-postal annui- swift action on these confirmations.” PR
6 The Postal Record July 2021You can also read
