The United States Postal Service (USPS) is currently working towards delivering a private health insurance plan to its employees and wants to opt out of the Federal Employee Health Benefits Plan (FEHBP.)
“If provided the authority to do so, we believe that we can provide our employees and retirees with the same or better health coverage for significantly less cost, ” said Postmaster General and CEO Patrick Donahoe during his testimony to the House Oversight Committee.
The financially strapped USPS recently released a plan to cut costs by 2016 to adapt to a marketplace in which there is less demand for hand delivered mail.
“While I commend Mr. Donahoe for his commitment to implement cost cutting measures, the financial status of the postal service remains untenable,” said Oversight Committee Chairman Dennis Ross (R-Fla.)
“In response to this fiscal crisis, the US Postal Service recently presented its five year business plan to profitability…the centerpiece of this plan involves shifting USPS employees and their retirees from the Federal Employee Health Benefits Plan (FEHBP) to a new USPS run health plan.”
Donahoe claimed a private health plan for the USPS will result in annual savings of approximately $7 billion and will function like any other health insurance plan in the private sector.
