Obama outlines USPS health care restructure in new budget proposal

For the better part of two years, one of the biggest changes that the United States Postal Service has been fighting for is the ability to alter its health care coverage for employees. Currently, the organization is required to prefund payments that go toward the financial future retiree health care. This is a one-time yearly payment that measures in the billions.

However, it appears as though some relief could be on the way. According to an article from Fierce Government, under President Barack Obama's fiscal 2015 budget plan, the health care prefunding requirement would be restructured.

The new proposal would adjust the payments, deferring those due in 2014 and reducing those scheduled in 2015 and 2016 by half. This would free up $9 billion in relief. Following that, starting in 2017, the payment plan would be restructured into a 40 year amortization schedule and the $16.7 billion that was defaulted on in 2012 and 2013 will be added to that schedule.

Obama's idea is different from those that have been proposed by the Senate Homeland Security and Governmental Affairs Committee bill, which is looking to overhaul the entire system. This one includes the use of Medicare parts A, B and D to cover hospital stays, doctor's visits and prescription drug coverage. Currently, this bill is awaiting a vote in the Senate.

The USPS will be facing changes in the years to some. Because of this, companies that rely on mailing practices would be wise to partner with an intelligent mailing solution provider to make sure they are able to optimize the system.