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Concerned legislators warn about management of the US Postal Service's health care plan

Federal government agency, Office of Personnel Management, remains understaffed in its IT department, preventing them from adequately supporting the health insurance program for postal workers that is employer-sponsored.

Administration of USPS healthcare program draws concern from legislators
Administration of USPS healthcare program draws concern from legislators

Concerned legislators warn about management of the US Postal Service's health care plan

The Office of Personnel Management (OPM) is under scrutiny as it prepares for the second open enrollment season of the Postal Service Health Benefits Program (PSHB). This program, which serves postal workers and retirees, could be at risk due to staffing shortages and resource constraints.

According to a recent report by the inspector general, OPM currently has only three IT employees to support the PSHB data platform, out of the 11 that the agency says it needs. This shortage has raised concerns among lawmakers, who fear that the mishandling of the PSHB and mixed signals to Congress and other stakeholders reflect a larger pattern of dysfunction at OPM.

In a letter to OPM Director Scott Kupor, certain congressional Democrats expressed concern that the agency has allocated only 1.3 full-time equivalents and one contractor to service the PSHB data platform, which is less than half of the resources OPM projected it needs.

The operational failure of PSHB could lead to the loss of trusted PSHB program enrollment data, the inability to on- or off-board members, and the inability for OPM to interact with PSHB carriers. This could risk the coverage of thousands of postal employees and retirees.

To address these staffing shortages, OPM is currently awarding a new contract for operations and maintenance support of PSHB. However, the administration's steps to address the issue are still considered inadequate by certain congressional Democrats.

The PSHB open enrollment season could also be impacted by the Trump administration's hiring freeze and government-wide purge of federal civil servants. This could jeopardize the PSHB program further.

In response to these concerns, OPM has shared updated information on its staffing levels and resource allocation, and the administration recently requested a funding anomaly. Despite this, the agency has failed to provide a consistent picture of its funding needs or a long-term plan to finance the program, including for any improvements to existing features or ongoing maintenance.

The PSHB program was slated to take control of its underlying data platform from the contractor who developed it this year. However, OPM failed to extend its contract with the vendor who built the PSHB data platform for an additional year. This could potentially lead to significant loss of functionality with the electronic enrollment system, leading to immediate serious consequences.

Congressional Democrats have warned of potential severe consequences for postal employees, retirees, and their families during the annual open season for health insurance benefits due to understaffing at OPM. They urge the agency to take immediate action to address these issues and ensure the smooth operation of the PSHB program.

In conclusion, the PSHB program is facing significant challenges due to staffing shortages and resource constraints. The agency must address these issues promptly to ensure the continuity of health benefits for postal workers and retirees.

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