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OPM RIN: 3206-AO43 Publication ID: Fall 2022 
Title: Postal Service Health Benefits Program 

The U.S. Office of Personnel Management (OPM) is issuing an interim final rule to administer the Postal Service Health Benefits (PSHB) Program within the Federal Employees Health Benefits Program pursuant to the Postal Service Reform Act of 2022. Under 5 U.S.C. Section 8903c, OPM must establish a PSHB Program for Postal Service employees, Postal Service annuitants, and their eligible family members, and not later than one year after the date of enactment, the OPM Director must issue regulations to carry out section 8903c.

Agency: Office of Personnel Management(OPM)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Yes  Unfunded Mandates: No 
CFR Citation: 5 CFR 890    48 CFR Ch. 16     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: Pub. L. 117-108    5 U.S.C. 89   
Legal Deadline:
Action Source Description Date
Final  Statutory  Section 101 of the Postal Service Reform Act of 2022 requires rulemaking no later than 1 year after enactment  04/06/2023 

Statement of Need:

OPM is issuing this rule to administer the PSHB Program. The Postal Service Reform Act of 2022, Public Law 117-108 establishes the PSHB Program for Postal Service employees, Postal Service annuitants, and their eligible family members, which will be administered by OPM and the first contract year will begin January 2025.

Summary of the Legal Basis:

Sections 101 and 102 of the Postal Service Reform Act of 2022, Public Law 117-108, amended chapter 89 of title 5 and added section 8903c to establish the Postal Service Health Benefits Program.



Anticipated Costs and Benefits:

This regulation affects OPM as the administrator of the PSHBP and other agencies that it may consult with during rulemaking and implementation of the PSHBP such as USPS, HHS, VA, DOL, and SSA. It is estimated that the rule would require individuals employed by these agencies to spend time providing information to OPM regarding eligibility, enrollment, and other necessary information. For the purpose of this cost analysis, OPM is focusing on OPM’s costs of administering the PSHBP. The Act allocates $70.5 million to OPM for start-up costs to carry out the PSHBP. This encompasses three program offices within OPM: Healthcare and Insurance (HI), which will have the largest impact as a result of this Act; Retirement Services (RS); and the Chief Financial Officer (CFO). OPM will incur additional costs (apart from the $70.5 million start-up costs) for ongoing administration of the PSHBP, including operations and maintenance of information systems (such as the central enrolment portal) and continuous data exchanges with partnering agencies, staffing for oversight and engagement with health plans, and maintaining separate systems for PSHBP financial transactions.

With respect to benefits, this regulation will ensure continuity of health insurance coverage for Postal Service employees, annuitants, and their family members who will no longer be eligible for FEHB in January 2025; enable enrollees access to more prescription drug coverage options and potential reduction in prescription drug costs for Medicare Part D eligible enrollees; reduce the Postal Service’s premiums by approximately $5.7 billion over 10 years (CBO Analysis) and reduce its future liability for retiree health benefits; enable use of a central enrollment portal that will reduce administrative burden for enrollment, ensure more accurate payment of plans, allow more frequent sharing of enrollment data with plans, and limit human error.



Action Date FR Cite
Interim Final Rule  04/00/2023 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Rina Shah
Senior Policy Analyst
Office of Personnel Management
1900 E Street NW,
Washington, DC 20415
Phone:202 606-2128

Louise Yinug
Planning and Policy Analysis
Office of Personnel Management
1900 E Street NW,
Washington, DC 20415-8200
Phone:202 606-0036
Fax:202 606-4640