New Bill Passed, Throws USPS a Lifeline

The USPS has been trying to get USPS retirees moved to Medicare - a good move.

USPS retirees are currently eligible to enroll in the Federal Employees Health Benefits (FEHB) Program. They are also eligible to enroll in Medicare, although only about a quarter do.

While retirees still have to pay a monthly premium for FEHB, USPS pays an employer's contribution to subsidize the actual premium cost.

Forcing all USPS retirees to use Medicare would reduce the USPS premium payments to FEHB significantly.

I don't know if the FEHB coverage is "better", but I assume that 3/4 of USPS retirees don't choose Medicare for a reason -- whether premium costs or health care coverage... This time, the Medicare requirement has the support of NARFE -- which originally opposed it.

Bottom line, while the Medicare requirement will save USPS lots of money, it may not necessarily save retirees any money.

I doubt the FEHB has income adjustments (IRMA) so they may prefer FEHB. If you earn (pension's, investments) over a certain amount while on Medicare, your Part B and Part D has a graduated increase in the Part B and D premiums depending on total income. I wonder if they coverage is better since one can get a Medicare supplement or a Joe Namath Advantage Plan to cover what Medicare does not.  I would get rid of FEHB and put everyone on Medicare that is not working and eligible.