do retired postal workers get health insurance

Few small employers have ever offered health benefits to their retirees, and the share of large businesses providing retiree health benefits has declined dramatically over the last 30 years. 108-173) and were enhanced by the Patient Protection and Affordable Care Act (P.L. 5714), whose key element is the Medicare mandate. [42] Tim Novak, “18 Aldermen Avoid Hefty Property Tax Hikes, 5 Pay Less,” Chicago Sun-Times, July 30, 2016, http://chicago.suntimes.com/news/watchdogs-18-aldermen-avoid-hefty-property-tax-hikes-5-pay-less. Programs and rewards to encourage healthy actions. Because Congress relieved the Service of those costs in PAEA, the estimates reflecting that are used here.). This means you can enroll in a health plan even if it's outside the annual . Postal Service, Form 10-K, various years. Medicare is burdened by swiftly rising per capita health costs and the growing share of the population age 65 and over. If a couple saves in anticipation of retirement, that is similar to the funded (or pre-funded) approach. 109–435, sec. Absolutely. If the funding schedule had been more gradual, the Service’s income statements over the period 2007-2015 would have looked better. For instance, the Postal Service’s statutory RHBF contribution in 2015 was $5.7 billion. cit., esp. pp. By Reg Jones on July 8, 2016 HEALTH INSURANCE, Postal Service, RETIREMENT, Self Plus One Q. I am a rural carrier planning on retiring from the U.S. cit. How to Apply for SSDI. If you do not continue health insurance coverage at retirement, you will not be allowed to elect state health insurance at a later date as a retiree. [52] See Postal Regulatory Commission, “Opinion And Recommended Decision,” Vol. For example, suppose that in return for labor services this year, a worker receives a pledge of future retiree health benefits with a present value of $2,500. or protected health information (member ID, diagnoses, treatments, test results, prescriptions, etc.). There is no penalty for joining after age 65 if you were working and covered by employer insurance (subject to the same exception for small firms). None of these parties advocated privatization, and the presidential commission explicitly rejected that path. [16] U.S. [67] Broader public policy issues were whether it would be desirable to shift costs to the financially struggling Medicare program and whether other elements of the plan, such as letting the Service invest fund assets in risky securities, would be financially prudent. In July, the House Committee on Oversight and Government Reform, under the leadership of Rep. Jason Chaffetz (R-UT), approved the Postal Service Reform Act of 2016 (H.R. As a result of these positives on the revenue and cost sides, 2006 was the fourth year in a row the Postal Service had been profitable, and the government enterprise’s borrowings from the U.S. Treasury had been cut from $11.3 billion at the end of 2001 to $2.1 billion at the end of 2006. [9] The law permitted the Service to lower its pension contributions and directed that some of the Service’s savings be used to pay down debt, some go toward delaying a rate increase, and some be held in an escrow account while Congress developed postal reform legislation.[10]. noncareer postal employees can also receive health benefits through the program. Losing health coverage qualifies you for a Special Enrollment Period. [75] (This issue would not arise with Part A because it has no premiums.) The RHBF now invests in special government securities. First, to give the RHBF a head start, PAEA transferred into the new fund the Postal Service’s overfunding of Civil Service Retirement System (CSRS) pensions ($17.1 billion) and the money in the temporary escrow account ($3.0 billion). Employees who do not participate contribute 5%. noncareer postal employees can also receive health benefits through the program. [58] As noted earlier, the Service paid $3.1 billion for retiree health care premiums in 2015 and was supposed to contribute $5.7 billion to the RHBF that year. A discussion of this change, which affects the funding of the Service’s other major type of deferred compensation, is beyond the scope of the present paper. Most Federal and U.S. Postal Service Alternative Health Care Plan Proposal,” FI-MA-12-014, August 22, 2012, https://www.uspsoig.gov/sites/default/files/document-library-files/2015/fi-ma-12-014.pdf. Unfortunately, the retiree health benefit commitments are very real and very costly. Postal Service: Action Needed to Facilitate Financial Viability,” Testimony Before the Committee on Oversight and Government Reform and Its Subcommittee on Federal Workforce, Postal Service, and the District of Columbia, House of Representatives, p. 6, April 15, 2010, http://www.gao.gov/assets/130/124419.pdf. The employee does not convert to an individual policy when basic insurance as an employee would otherwise cease. The premiums will be deducted from the survivor annuity. Most of the Service’s contributions to the new fund could be paid using the pension “savings.” PAEA was bipartisan legislation with broad support. Hence, the costs of current operations seem $2,500 lower than they really are and the net income from current operations appears $2,500 higher. However, you are covered under the Medicare program because you pay Medicare taxes on your federal earnings. Shifting costs to Medicare would greatly ease the Postal Service’s financial problems, but the Medicare program is itself facing huge strains. If you have a job that offers you health insurance benefits but you've chosen to waive that health insurance (in favor of being covered under your spouse's plan), you'll be eligible for a special enrollment period at your workplace when you lose access to the insurance plan your spouse had pre-Medicare. Consequently, when PAEA replaced both the escrow account and responsibility for the military credits with roughly the same amount of RHBF contributions, the earlier price increases should have covered the RHBF’s cost. Congress made the right call when it lowered the 2009 RHBF contribution from $5.4 billion to $1.4 billion. All federal and postal employees and retirees who are eligible to enroll in the FEHB Program may become members of APWU Health Plan. EGWPs, which sometimes go by the nickname “Egg Whip,” [72] can be traced to the Medicare Modernization Act of 2003 (P.L. 111-68. The House Committee on Oversight and Government Reform, chaired by Rep. Jason Chaffetz (R-UT), recently approved a bill, the Postal Service Reform Act of 2016 (H.R. [30] In 2015, the Service ended the year with a much more comfortable $6.6 billion in cash and cash equivalents. After completing one year without a break in service of more than 5 days, RCAs may also be eligible for: health insurance under the Federal Employees Health Benefits Program (FEHB); dental and vision insurance through the Federal . One group that would see higher costs is the minority of postal retirees not currently enrolled in Medicare Part B because they would have to start paying Part B’s premiums. 111–148). 1-800-222-APWU (2798) 1-800-622-2511 (TDD) 8:30 am – 6:30 pm ET Monday - Friday. The Public Employees' Retirement System of New Jer - sey (PERS) Administration Yes. • Integrating the Postal Service's Federal Employee Health Benefits (FEHB) plans with Medicare would benefit both USPS and its retirees. And, as mentioned above, fewer and fewer employers outside the government sector offer retiree health benefits.). The funded amount reflects contributions and interest earned on contributions. Your spouse or former spouse and your children may be eligible for benefits when you start getting SSDI. 201). Federal employers are eligible to keep FEHB after retirement. To continue your health benefits enrollment into retirement, you must: (1) have retired on an immediate annuity (that is, an annuity which begins to accrue no later than one month after the date of your final separation); and (2) have been continuously enrolled (or covered as a family member) in any FEHB Program plan (not necessarily the same plan) for the five years of service immediately . In order to determine when you should retire you must consider several important factors. In 2005, the Service sought a 5.4 percent across-the-board rate increase solely to cover the escrow expense. Postal Service: Proposed Health Plan Could Improve Financial Condition, but Impact on Medicare and Other Issues Should Be Weighed before Approval,” GAO-13-658, July 2013, http://www.gao.gov/assets/660/656011.pdf. This volume highlights many of the special health insurance problems facing the elderly and some of the solutions that the reform process must consider. The Service’s finances would be much brighter if those debts did not exist, but they do exist, notwithstanding the “controllable income” concept. The FEHB provides comprehensive health insurance to federal retirees and their spouses. Retirement. Long Term Care. The reason is that the full costs of operations are reported when they occur. [35] Hence, from 2006 to 2010, the unfunded liability dropped from $74.8 billion to $48.6 billion, and the funding ratio rose from 0 percent to 47 percent. It cannot expect rapid future income growth when demand for its most profitable product, First-Class Mail, continues to decline; its future costs for retiree health care are huge; and its promise to provide retiree health benefits is binding. Second, PAEA directed the Postal Service to make payments into the RHBF averaging about $5.6 billion annually over the 10 years, 2007-2016. Losing health coverage qualifies you for a Special Enrollment Period. During the 10 years 2007-2016, while the assets in the RHBF are building up, the Service has continued paying the employer portion of the FEHB premiums that come due each year. Moreover, even if the Service reduced maintenance and capital spending because of low cash holdings, later RHBF contributions had no effect on maintenance and capital spending since the Service made no later contributions. Your FEHB coverage (Federal Employees Health Benefits) is an important benefit while you're working, and if you meet the eligibility rules, you and your spouse can keep the benefit for the rest of your lives in retirement. Postal Service, “Using U.S. [66] See Statement Of Postmaster General And Chief Executive Officer Patrick R. Donahoe, Before The Committee On Homeland Security And Governmental Affairs, United States Senate, February 13, 2013, http://about.usps.com/news/testimony/2013/pr13_pmg0213.pdf; and Office Of Inspector General, U.S. While some union contracts differ, most employees who elect coverage and participate in the Get Healthy wellness program currently contribute 2.5% of their biweekly gross base salary toward the cost of their health benefits. Medicare Part A is projected to become insolvent in 2028. The most obvious policy question for Congress to weigh is whether it would be appropriate to shift more costs onto the strained Medicare program in order to assist the Postal Service. In late 2006, when PAEA was enacted, the Postal Service appeared much stronger than it does today. If you retire before you're 65 and lose your job-based health plan when you do, you can use the Health Insurance Marketplace® to buy a plan. A retired federal senior executive currently working as a management consultant and communications expert, Mary Bauer has written and edited for senior U.S. government audiences, including the White House, since 1984. The first choice we must make is whether or not to sign up for Medicare at all. The proposals were complicated, and it is beyond the scope of this paper to discuss their details. Find health and wellness informationand tips for getting the most out ofyour benefits. The Postal Service wants to integrate Medicare into our health benefits for retirees. However, because the Service defaulted on the payment, it obviously did not reduce cash on hand, did not add to RHBF assets, and did not reduce the unfunded retiree health benefits liability. Health Benefits. Private answer. Dental Insurance. 395 Hudson Street New York, NY 10014. Another would be to shift costs to other government programs. 4-5, https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/Downloads/TR2016.pdf. A newer program called the Federal Employees Retirement System (FERS) replaced CSRS. This could change, however, because the USPS opened a discussion with Congress in 2011 regarding the possibility of moving to a separate health system for postal employees and retirees, to help offset deficits and the burden of federally mandated prepayment for health insurance costs. However, if you remain on the same health plan before and after retirement, your total yearly premiums and benefits will remain the same. You can apply for pre-tax premiums. 6 For instance, according to one account, the 2006 postal act was an “an incredible piece of ugliness” that forces the Service “to PRE-PAY the health care benefits not only of current employees, but also of all employees who’ll retire during the next 75 years. Those federal employees who are receiving, or who will be receiving, military retirement pay (for active duty or for reserve duty) are or will be eligible for TriCare health insurance coverage. This means you can enroll in a health plan even if it's outside the annual . To comply with the Patient Protection and Affordable Care Act (PPACA), the Service offers health insurance outside the federal program – and without the retirement benefit – to certain noncareer employees. But if the RHBF expense was effectively in the rate base, why did the Service plunge into deficit immediately after PAEA’s enactment? Meanwhile, with less financial pressure on the Postal Service, it would be less likely that changes burdening stakeholders, such as higher postal rates, further reductions in the postal workforce, the closing of more postal facilities, or a rethinking of postal employees’ fringe benefits, would be undertaken. By then, however, defaults had come to seem almost routine, and the Service was unwilling to pay any of its statutory RHBF obligation. Like other seniors, federal retirees, including those from the Postal Service, are generally able to enroll in Medicare if they are at least 65 years old. Learn about US Postal Service Health Insurance, including a description from the employer, and comments and ratings provided anonymously by current and former US Postal Service employees. Following consultations with postal unions and other major stakeholders, the Service dropped its demand that postal workers leave the FEHB Program. [58] The numbers are big because the unfunded liability remains very large and retiree health benefits are very expensive. GAO found that: (1) frequent presidential use of alternative pay rates caused pay for federal employees to lag significantly behind that for private sector employees; (2) an 18.28 percent federal pay increase would be necessary to achieve ...

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