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Chatting About the Postal Service Health Benefits Program

On the April 28 episode of NAPS Chat, NAPS Director of Legislative & Political Affairs Bob Levi talked with Karla Kirby, USPS executive manager for the Postal Service Health Benefits Program. They discussed the status of the emerging program, which goes into effect Jan. 1, 2025, as well as its implementation and collaborative efforts to educate USPS employees and retirees about the plan and what to expect when the plan rolls out.

Levi described the new Postal Service Health Benefits (PSHB) program as one of the most significant items to come out of the Postal Service Reform Act. The new health benefits program will be tailored to Postal Service employees and retirees. The program will be administered by the Office of Personnel Management (OPM), which has administered the Federal Employees Health Benefits Program.

Levi said the Postal Service is rolling out the program deliberately, methodically and collaboratively. Kirby is one of the key postal staff members to help ensure a smooth transition. She has 20 years’ experience in human resources and benefits and is the co-host of Mailin’ It!, the official USPS podcast,

Levi: What is your responsibility in regard to implementation of the new Postal Service health plan?

Kirby: As executive manager for PSHB, my role is exactly as you said—to ensure the implementation runs smoothly. Under the guidance of my director, Benefits and Wellness Director Dana Cotman, and Executive Director of Compensation Steven Darragh, we are working very closely with the unions, OPM and other stakeholder agencies to make sure our employees and annuitants are informed and knowledgeable about the changes forthcoming and that the plan rolls out smoothly.

Levi: There’s going to be a learning curve that, whether it’s steep or gentle, will determine in large part how receptive the postal community is to the information presented. How can employees and annuitants get information about the new program?

Kirby: First, we will be rolling out a comprehensive education plan that includes employees and annuitants. Employees can visit Liteblue and get information on the PSHB page. Annuitants can visit keepingposted.org to get information. The quickest way to stay abreast is to text PSHBP to 39369 to get text updates when new information is available.

Levi: How will this information be rolled out?

Kirby: We’re going to use all channels available—mail, email. We’re also partnering with the unions to use their channels. We’ll be using everything at our disposal.

Levi: To remind our listeners, what is the date the postal benefits program actually will come into being? What are the important dates to remember as we approach implementation?

Kirby: We will roll out the plan on Jan. 1, 2025. Before that date, we will have the start of the 2024 open season, which will run from the second Monday in November to the second Monday in December. During the 2024 standard open season, everyone will have an opportunity to make their election for the new plan.

Levi: So the timing will be about the same to which they are accustomed for the normal FEHB program.

Kirby: Correct; that’s what we have planned as of now.

Levi: Will they get some idea of the plan options before the 2024 open season?

Kirby: We’re working closely with OPM to make sure the plan information is available as soon as possible.

Levi: Other than participants in this new postal health program being limited to members of the postal family, what potential differences would you anticipate, if any, between the traditional federal employees health program and the new postal employees health program?

Kirby: Honestly, Bob, as a program within FEHB, I don’t think there will be many differences. You may see a few more health plans that will integrate with Medicare than you see in FEHB, but, other than that, it should be very comparable.

Levi: So we would assume many of the plans with which we are familiar in the FEHB program—such as Blue Cross Blue Shield, the union plans, GEHA and more—likely also will be in the PSHB program.

Kirby: That is a safe assumption.

Levi: However, there might be some premium differences. I know the Congressional Budget Office has projected premium savings to Postal Service participants as a result of Medicare integration.

Kirby: I know that has been one of the projections, but, in the first year, you wouldn’t necessarily see those savings. In the first year, I anticipate the premiums will be on par.

Levi: Because we have to build up the reserves in year one.

Kirby: Exactly—and get the claims experience.

Levi: How do think HMOs will operate in the new PSHB program? It’s a much smaller population with which we are dealing. For instance, I assume the large Kaiser plans in California still would be interested in our community.

Kirby: I can say that, from the little feedback we’ve gotten, there seems to be a lot of interest from carriers. We represent a large portion of the FEHB program, between 20 and 25 %, so we can assume most of the carriers will come on board with the PSHB program, as well.

Levi: When USPS employees and annuitants come across their first open season, they must make a selection; they can’t just let it ride, correct?

Kirby: Yes and no. We want to encourage everyone to make a positive election, look at the plans available and pick one that best suits them and their family. However, we’re also aware there will be some people who won’t make a selection. So, for them, they will be transitioned to a comparable plan. What that comparable plan is has yet to be determined because the plans have yet to be determined.

Levi: And that decision would be made by OPM, correct?

Kirby: That is correct.

Levi: So one might assume that if you were participating in a Blue Cross Blue Shield plan in FEHB and for whatever reason you did not make an election, there’s a high probability you would remain in a comparable Blue Cross Blue Shield plan in the PSHB program.

Kirby: I think that’s a pretty good assumption.

Levi: I know you said it before, but I think it’s important for our members to understand: When do you expect 2024 open season information to be available and how will that particular information be shared with prospective PSHB program participants?

Kirby: So, as I mentioned, open season in 2024 runs from mid-November to mid-December. Typically, we would send open season communication in October. But, given the magnitude of this type of change, we’re going to be accelerating that schedule and sending it out as soon as the plan information is available.

Levi: This will be shared on the web, as well as mailed?

Kirby: Yes. Typically, we send several postcards and mailers during open season that include employees and annuitants. We put the information in our eRetiree newsletter that goes out monthly. We also include the information in our triannual mailer that goes out to annuitants. And, as usual, we want to partner with our unions to push out that information for a change of this magnitude.

Levi: Do you envision the old FEHB health fairs taking place again that would cater to the Postal Service population?

Kirby: Ironically enough, post-pandemic, we have participated in 34 June 2023 / The Postal Supervisor some onsite fairs. So we’re not opposed to doing that, but we absolutely want to support all our different stakeholders. So to the extent we can provide information and other types of support to locations we are unable to go, we absolutely will do that.

Levi: A lot of retirees are concerned about not being in the loop because we’ve become so acclimated to receiving information via the internet. What type of communication do you anticipate for the retiree population?

Kirby: As I mentioned, we mail a triannual hard mailer. We also send a series of postcards, as well as an open season pamphlet that includes information about how to stay connected and use our consumer checkbook guide, which allows them to compare plans in their area. We continue to work with retirees and meet them where they are to communicate information.

Levi: The preliminary fact sheets about the new program for employees and annuitants have been circulated recently by the Postal Service. The postal management associations and the unions, including NAPS, have publicized the information. Would you tell us about the collaboration that went into drafting these important documents?

Kirby: In working with our Labor Department—Tom Blum, vice president, Labor Relations; Jennifer Breslin, director of Collective Bargaining & Arbitration; and Bruce Nicholson, director, Labor Relations Policy Administration—as well as Cotman and Darragh and the employee associations—we had a great collaborative effort going back and forth, looking at the information, deciding how it best would be received by our employees and annuitants. We continue to meet on a regular basis and hope to continue the collaboration regarding the education materials that will go out to the employees and annuitants.

Levi: Would the Postal Service be willing, if invited by any of the associations, to send someone to their events and educate the employees and annuitants attending?

Kirby: Yes. We are not averse and have done so. We encourage anyone who wants someone from the Postal Service to come and share information, even if the information is prerecorded, to send those requests to us here in Benefits and Wellness. We will look at the requests and determine what we can accommodate. We absolutely are prepared to go out and meet face to face and talk about the new program with our employees and annuitants.

Levi: The postal bill was signed into law little more than a year ago. The Postal Service and selected stakeholders have been deeply involved in trying to chart a path for implementation. Preliminary regulations recently were released by OPM in collaboration with the agency. What is the current status of the PSHB program rollout? Have there been any surprises or speed bumps along the way?

Kirby: I wouldn’t say there haven’t been any surprises or speed bumps. As a new program, you go in with a mind gambit; you don’t know what to expect. We had a pretty good idea of what we would be facing, so, for now, it’s been pretty good.

We’ve established a great working relationship with OPM, as well as the Social Security Administration. I think we’re in a good place to move forward.

Levi: Many current postal retirees have been anxious about Medicare Part B enrollment—whether they will be required to enroll and what options will be available. Could you explain who will be exempt from enrolling in Part B as a condition for continued enrollment in the PSHB program?

Kirby: That scenario is one of the reasons we created the fact sheets—to help ease some of the anxiety. Current postal annuitants, as well as those who will be annuitants prior to Jan. 1, 2025, will not be required to enroll in Medicare Part B.

However, they will have the option to enroll. This is the select population of those already 65 when we start the special enrollment period who can voluntarily enroll in Part B without having to pay the late enrollment penalty.

Levi: How will that happen? When will they be notified they are eligible to enroll in Part B without penalty?

Kirby: We currently are working with OPM to craft that messaging and develop the timeline. The law, as well as the regulations, indicate that special enrollment period will begin on April 1, 2024.

We anticipate having information out to eligible annuitants in the December 2023 to January 2024 timeframe, then sending out continual reminders through the end of that special enrollment period.

Levi: And when that special enrollment period closes—as far as we know at this point in time—the penalty-free period closes.

Kirby: Yes. Again—just for those who already are 65 and older when we launch the special enrollment period who previously did not take advantage of their initial Medicare period. Those annuitants who are not 65 will have their Medicare enrollment period once they turn 65, which starts three months prior to their birthday—the month of their 65th birthday and three months following.

Levi: So those employees who retired, but are not yet eligible for Medicare—that is, they are not yet 65—have a choice. They could still participate in the PSHB program, even if they enroll or don’t enroll in Medicare Part B.

Kirby: That is correct.

Levi: However, for those who are not retired as of Jan. 1, 2025, and are not over the age of 64—as a requirement of continued participation in the PSHB program—they would have to enroll in Part B.

Kirby: They would have to enroll in Part B, like myself. However, if they still are working at age 65, the requirement will not hit them at that point. It will hit them when they retire. They will have an eight-month period from their date of retirement to enroll in Part B.

Levi: There are some other exemptions, including if you are participating in another federally sponsored health plan, such as Veterans Affairs and the Bureau of Indian Health Services or if you live overseas.

Kirby: Yes. Those are the three exemptions. If you are participating in any of the Department of Veterans Affairs health programs, if you are eligible for Indian Health Services benefits and if you are living abroad.

Each of those is an exception that will exempt you from the requirement to enroll in Medicare Part B.

Levi: If you are eligible for VA benefits or Indian Health Services benefits and you drop out of either program at some future point, would you then have to enroll in Medicare Part B?

Kirby: We’re still finalizing regulations, so I anticipate probably early 2024, late 2023, we will have that ironed out and it will be part of our comprehensive education so people will know exactly what is expected of them, especially for the population that will be required to enroll in Part B.

Levi: We’re going to rely a lot on this education program—how it’s rolled out and communicated to our members, employees and annuitants. Who’s going to be responsible? Will there be a designated staff? Will it be through OPM? The Postal Service? Who ultimately will be responsible for the education process?

Kirby: We are here in Benefits and Wellness; we are going to be responsible. We are looking at other resources we may need to include. We also have a wide variety of partnerships of which we plan to take advantage. Our employee association partners are going to be a large part of that effort. You and others have built trust with our employees and annuitants. We want to work with you and them to push out information to ensure we are blanketing all available channels.

Levi: Some have characterized the rollout of the new program, as I have, as a Herculean task, a really major task. It’s a new thing, our members are very anxious about it. Its success will be the result of interaction among several federal agencies. The Postal Service is in the middle of it, but OPM is involved, Medicare/Medicaid services are involved, the VA is involved, as well as the Bureau of Indian Affairs. Thus far, how has the interagency communication and collaboration worked?

Kirby: So, you forgot one—the Social Security Administration. We have worked collaboratively very well. We have incremental meetings where we touch base. And again, even though the education effort sits with the Postal Service, we are committed to work with our partners to ensure we are on the same page and pushing out the same information.

Levi: Things are going to happen between now and, let’s say, November 2024. Would you be willing to again come on NAPS Chat to provide new information to our members?

Kirby: Absolutely! As long as I have all the checked boxes and approval, I’m more than happy to share information. Thank you for having us! Please check out keepingposted.org or Liteblue if you are an employee. Text PSHBP to 39369 to get the most up-to-date information. And stay tuned!

Levi: And I’ll do a pitch for Mailin’ It!, the podcast you co-host.

Kirby: Please subscribe wherever you listen to your podcasts. We do monthly episodes. We just finished an episode with PMG Louis DeJoy. He talked about the “Delivering for America” plan and our two-year anniversary into that plan. Be sure and check it out!