USPS Requires Medicare-Eligible Workers to Enroll in Medicare Part D
The Postal Service Health Benefits Program (PSHBP), a new USPS-only health insurance program, has introduced a requirement for Medicare-eligible postal workers and retirees. Starting this open season, they must enroll in Medicare Part D prescription drug coverage through an employer group waiver plan (EGWP). This is a change from the Federal Employees Health Benefits Program (FEHBP), where such enrollment was optional.
The first open season for this requirement begins on Nov. 11 and ends on Dec. 9. The American Postal Workers Union (APWU) has called for the option to opt out of this integration, seeking to maintain comprehensive benefits while managing costs. However, the Office of Personnel Management (OPM) stated that this requirement is due to specific policy goals set by Congress.
OPM's final rule ensures that Medicare Part D coverage is 'equal to or better than' the PSHBP plan drug coverage, with an exception for those living overseas. Despite this, the National Active and Retired Federal Employees Association (NARFE) argued that some postal retirees may face increased prescription drug costs due to penalties and restrictions associated with Medicare Part D enrollment. In some cases, retaining PSHBP drug coverage could be more beneficial due to income-based Medicare premium surcharges or the inability to combine drug company discounts with insurance coverage.
The PSHBP's new requirement for Medicare-eligible postal workers and retirees to enroll in Medicare Part D prescription drug coverage through an EGWP is now in effect. While the American Postal Workers Union has called for the option to opt out, the Office of Personnel Management has clarified that this requirement is due to specific policy goals set by Congress. Postal retirees should carefully consider the potential implications and costs before making their enrollment decisions.
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