NAPS Leg/Reg Update – September 25, 2013
The Senate postal oversight committee on Thursday will hold its second hearing in two weeks on postal reform legislation, S. 1486, introduced in early August by the panel’s top Democrat and Republican, Sen. Tom Carper (D-DE) and Sen. Tom Coburn (R-OK).
Thursday’s Senate postal hearing will focus on the Postal Service’s top legislative priority — authorizing USPS to establish a postal-only health plan for its active and retired workers, one better integrated with Medicare to receive federal subsidies and bring down premium costs. Donahoe is expected to suggest at Thursday’s hearing that the cost savings delivered by a USPS health plan, especially through Medicare integration, would offset the costs of retiree health benefit pre-funding and literally take pre-funding concerns off the table.
Officials from the Office of Personnel Management, which oversees the Federal Employee Health Benefits Program, and the Government Accountability Office, which has reviewed the USPS health plan proposal, are expected to respond to those claims at Thursday’s hearing.
You can watch Thursday’s hearing live, which starts at 10 am ET, here.
Last week’s Senate postal hearing focused on postage rates and revenues, in the lead-up to today’s announcement that the Postal Service will seek Postal Regulatory Commission approval of an emergency postage increase, a move opposed by mailers
In a letter released today, USPS Board of Governors Chairman Mickey Barnett described the “precarious financial condition” of the Postal Service and the “uncertain path toward enactment of postal reform legislation” as primary reasons for seeking price changes above the CPI increase. He also indicated that the price adjustment above the CPI increase is necessary in order to ensure that the Postal Service will be able to maintain and continue the development of postal services of the type and quality which America needs.
Postal-rate increases are capped at inflation, as measured by the Consumer Price Index. That would mean an allowable increase of about 2 percent for implementation in January. The Postal Service, under the 2006 postal law, may seek a higher rate increase beyond the CPI in “exigent” circumstances, when approved by the Postal Regulatory Commission, which has 90 days to approve the action. In 2010, the Postal Service submitted a request for an exigent rate increase of 5.6 percent, far above the CPI cap, that would have brought in more than $3 billion annually. But the mailers fought that increase in court and it was derailed.
Bruce Moyer
Legislative Counsel to NAPS
related link: Outside the Box: Reforming and Renewing the Postal Service, Part II
The CPI will explode in the not so distant future
A postal “only” health plan. So now congress wants to use strong arm tactics against postal workers. They are so against letting go of this rediculous prefunding of retiree benefits that they would take the fredom of choice concerning health plans away and off the top of their heads say “well that’s the savings back from the 5.6 Billion we make you pay to prefund the retiree benefits”. It is highly unlikely that a postal only health plan will have any cost savings or equal care when needed to you then your current plan gives you. Any and all savings will be made by the postal service at your expense. They mention lower premiums, that means More out of pocket payments, less available treatment options, with inferior patient care. I hope I’m reading this incorrectly and they are just making this another option……
Management, or in this case mismanagement has offered discounts to large mailers below what turns out to be below cost service. At a House hearing earlier this year Donahoe said these discounts are somewhere between $14 and $18 billion a year! Here is a link to that story. http://burrusjournal.org/2013/09/07/a-ponzi-scheme/
The Postal Regulatory Commission sued postal management earlier this year for under charging these same large mailers. PRC won the case and management has appealed the decission.
The question that needs to be asked is why have the union leaders not jumped all over these discounts?
I understand price increases result in fewer pieces of mail being sent out, but that volume always comes back because there is no better deal in advertising. Even the bulk mail associations admit that volume of their mail increases by 2-3% every year.
Had he ever been graduated in college? he might disclosure his GPA, I wonder if he is able to run the business.
Liars and thieves testifying to liars and thieves.
We are so fucked.
Leave my benefits alone Donuthole!!! You have NO business managing our healthcare; you already mismanaged the USPS into bankruptcy (and that is your supposed area of expertise).
Write your congressman NOW! I did…unless you want the postal clowns deciding who does your heart surgery.
why is anybody surprised about anything that politicians do that is destructive to the average person and beneficial to themselves ? they have been screwing us for decades why would they stop now ?
Unless we are talking about 5 day delivery……….Zzzzz……zzzz……zzzz!
As a USPS retiree I don’t want the USPS involved in any of my benefit administration. Once you retire from any job, your pay and benefits should be the “sacred cow” and not subject to whimsical changes.
Tying rates to the CPI is another flaw of the PAEA, one that was included to benefit major mailers. USPS is NOT a consumer, it is a delivery business, and its costs are much more affected by fuel prices and other business-related commodities.
Here’s a couple of questions for ya donuthole:
– why has the hq staff grown almost 8% in recent years ?
– why does the hq staff have it’s own costly private health center ?
Hey cheeky, it’s not the unions fault for the grievances. If mgmt. would, for once, follow the contract, than the grievances wouldn’t happen.
Surely you know that. If not……………
Before they start attacking Postal worker’s benefits they need to eliminate the ridiculous requirement for the PO to prefund its retiree benefits for the next 75 years. THEN, take a look at the budget to see where we are.
Next step would be to put the Postal Service back under the Federal Government (not quasi-Federal) and eliminate all the overpaid executives and their bonuses from the Board which would save millions.
Thirdly, put us back under Federal which would mean no more Unions which would save more millions because of all the lost grievances.
Just my thoughts!