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GAO Reviews USPS Proposed Health Benefits Plan

GAOA Government Accountability Office review of a U.S. Postal Service plan to develop its own health insurance scheme has found that employees will likely end up paying more for the benefit, the Federal Times reported Tuesday.

Sean Reilly writes the federal report concluded workers will be hit with an increase in deductibles or forced to pay maximums at their own expense, even though the premiums are about the same with current coverage under the Federal Employees Health Benefits program.

The in-house health plan also suggests that retirees avail of Medicare for primary coverage, a requirement that could translate to thousands of dollars in added cost to those yet to be Medicare-eligible, the report added.

The USPS proposal, subject to congressional approval, is part of the financially strapped mailing service’s plan to raise revenue and avoid insolvency.

Earlier this month, Sens. Tom Carper (D-Del.) and Tom Coburn (R-Okla.) have authored a bill that would kick-start dialogue among stakeholders about the in-house health plan.

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