From Federal Times:
Postmaster General Patrick Donahoe will testify Tuesday that the U.S. Postal Service could save nearly $7 billion in the first year of running its own health care plan, largely through eliminating the need to prefund retiree health benefits.
But a leading federal health care expert will blast the Postal Service’s plan as unrealistic and disastrous. Walt Francis, who writes the annual Checkbook guide to health plans, will say the Postal Service would “massively disrupt or destroy” the Federal Employees Health Benefits Plan by withdrawing nearly a quarter of the 8 million enrollees in the federal government’s employee health care plan, according to his written testimony to the House Oversight and Government Reform Committee. And it could drive the Postal Service’s own costs up by at least $1 billion a year, Francis says. The committee posted the written testimonies of Donahoe and Francis online on Monday.
The desperate and bankrupt Postal Service last August proposed pulling out of FEHBP and setting up its own health care plan as part of an aggressive proposal to cut $22.5 billion in costs by 2016. Federal Times
From Committee on Oversight and Government Reform
Houe Subcommittee Hearing
Can a USPS-run Health Plan Solve Its Financial Crisis?
Mar 27 10:00 am
2154 Rayburn House Office Building
Mr. Walton Francis(testimony)
Author and Federal Health Care Expert
Mr. Patrick Donahoe(testimony)
Postmaster General and CEO
United States Postal Service
PMG Donahoe Testimony on USPS Health Plan 3-27-12