Mike Causey

It’s Not Just The Uniform

When it comes to health insurance premiums, postal workers pay up to 50 percent less than their federal colleagues in other agencies. How come? Mike Causey says...

Federal News Network Staff

December 5, 2007 4:00 am

2 min read

One of my grandsons, call him Duncan, loves money. And he is frugal. To a fault. He collects money (old and new) and welcomes contributions. Extortion and shake-downs, especially of older relatives, are his speciality.

Like many tightwads, he doesn’t spend much. He depends on the kindness of others. And someday he will be delighted that his father is with the U.S. Postal Service because…

When it comes to paying health premiums, postal workers pay less than other federal workers. They get the same coverage as employees with the IRS, DARPA, Interior or Agriculture. But they pay about half as much for coverage.

Why?

It’s a long story, best summed up in two words: union contract.

The USPS is the most heavily-unionized federal agency. One of the major benefits unions won out of contract negotiations is that the USPS pays a larger share of employee premiums.

For most white collar feds and for federal retirees, the government pays an average of about 72 percent of the premium. But the USPS pays a bigger chunk and it shows.

Example: A long time (Category 2) postal worker enrolled in Blue Cross Basic self-only plan next year will pay only $460 in premiums. A newer employee (Category 1) under a different formula will pay $510 for the same coverage. But a white collar fed, at Justice, GAO, or Homeland Security, will pay $1020 for the same Blue Cross Basic plan and coverage.

Postal workers got the health premium perk the hard way. They belong to a union. Most white collar workers do not belong and pay dues to a union, even if they are covered by a union contract. But roughly 8 or 10 postal employees is a card-carrying union member.

Benefits Open Season

If you want to change health plans for 2008, or signup or renew a Flexible Spending Account, time is running out. You have until December 10th (that’s next Monday) to pick your 2008 health plan, sign up or renew an FSA or to join one of the optional dental and/or vision health plans.

For last-minute advice from the man who wrote the health insurance book tune into www.federalnewsradio.com today (or listen at AM 1050) this morning at 10 a.m. EST.

Walton Francis, author of Consumers Checkbook Guide to Health Plans, will join Francis Rose and me to talk about best buys for you.

You can call in or send an e-mail question. Listen if you can.

Picking the best plan for you could save you $1,000 in premiums and out-of-pocket costs next year.

Oh, and about those Flexible Spending Accounts. Francis says for most people they are a no-brainer. Find out why he thinks you should open one right now.