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1 1 (February 11, 2022)

handle is hein.crs/govefgr0001 and id is 1 raw text is: Congressional____ a Research Service Proposed Changes to USPS Health Benefits in the Postal Service Reform Act of 2022 February 11, 2022 The Postal Service Reform Act of 2022 (PSRA; H.R. 3076) includes a number of provisions that would alter the authority and operations of the U.S. Postal Service (USPS) and the Postal Regulatory Commission. Section 101 of the PSRA includes reforms intended to reduce USPS's future retiree health liability by requiring eligible postal retirees to enroll in Medicare Part B and by providing retiree drug coverage through Medicare Part D. This Insight provides an overview of how Section 101 of the PSRA would change USPS worker and retiree health benefits. USPS Health Benefits Similar to most other federal agencies, the USPS offers health care benefits to its employees, retirees, and their dependents through the Federal Employees Health Benefits Program (FEHB), which is administered by the Office of Personnel Management (OPM). Although USPS health benefits are provided through FEHB, the USPS is governed by arrangements that are unique within the federal government in regard to its funding of these benefits. For non-postal federal employees, the amount the federal government contributes to premiums is determined according to a statutory formula and is paid out of the employing agencies' appropriations for salaries. For USPS employees, the USPS contribution to premiums is determined through collective bargaining agreements and is paid out of USPS revenues. Although different methods are used to determine federal government/USPS premium contribution amounts, contributions are generally the same in 2022. The amount of government contribution for postal and non-postal retirees is determined using the same formula as for non-postal employees. In most federal agencies, the government contribution to retiree health benefits is paid by OPM through an appropriated entitlement. The USPS pays the government share of USPS retiree health benefits and, since 2017, has done so using the Postal Service Retiree Health Benefits Fund (PSRHBF). (The PSRHBF is related to the USPS prefunding obligation for retiree health care costs, which is addressed by Section 102 of the PSRA.) Congressional Research Service https://crsreports.congress.gov IN11856 CRS INSIGHT Prepared for Members and Committees of Congress

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