USPS Plan to Create Own Health Care Plan Would Be Costly and Impractical, Panel Told

The U.S. Postal Service‘s proposal to take its employees and retirees out of the Federal Employees Health Benefits Program would cost USPS more than remaining in the federal program, while causing serious problems for FEHBP, Walton Francis, the principal author of a popular guide to FEHBP plans, told a House subcommittee March 27.

“This is essentially a proposal to dismantle the Federal Employees Health Benefits Program,” he told the panel, estimating that nearly half of the program’s participating insurers would be forced to drop their coverage if USPS is permitted to withdraw from the federal program.

Francis asserted that ...