Sun. Jun 23rd, 2024

OPM: Upcoming Postal Health Program’s Effect on Premiums ‘Highly Uncertain’

April 12, 2023
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In announcing rules for the separate health-care program for Postal Service employees and retirees, OPM said that “At present, there remains a great deal of uncertainty with respect to the longer-term impacts on plan enrollment, carrier participation, plan design, and plan premiums.”

Said OPM, “It is estimated that the cost of coverage for Postal employees and their eligible family members is slightly higher than for the other federal employees. The creation of a separate risk pool for Postal Service employees and annuitants will result in premiums that are more reflective of the resulting postal and non-postal populations. Removal of these individuals from the FEHB plan population will therefore result in slight reduction in average per member costs which will be directionally reflected in FEHB plan premiums following PSHB implementation.”

“The expected decrease in FEHB plan premiums would be mirrored by a slight increase in PSHB premiums, although this increase would be minimal compared to the expected decrease in premium due to Medicare enrollments, meaning that the likely result will be lower premiums for PSHB plans compared with current FEHB plan premium amounts.”

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