The first round of bidding for the new employer-sponsored health insurance program for U.S. postal workers is fast approaching, but the new system is already sparking controversy.

The Postal Service Health Benefits Program, established as part of the Postal Service Reform Act of 2022, will create a new USPS-only health insurance program, similar to the Federal Employees Health Benefits Program , which provides coverage to federal workers, retirees and their families. The first opening period during which postal workers can choose their coverage for next year runs from November 11 to December 9.

In a last-minute change to the regulations governing the program and its implementation this fall, the Office of Personnel Management issued a final rule in the Federal Register last week, clarifying provisions governing review of eligibility decisions, statutory requirements for Medicare Part B enrollment, and the integration of the Medicare Part D prescription drug program into the PSHBP.

This last provision is the source of this week’s controversy. The OPM rule states that, unlike the FEHBP, Congress intentionally steered Medicare-eligible postal workers and retirees toward insurance coverage that includes a Medicare Part D Employer Group Waiver Plan, or EGWP .

“Although PSHB is included under the FEHB program, PSHB is subject to separate statutory requirements, including those governing the requirement to offer an EGWP PDP and to integrate Medicare Part D benefits,” wrote OPM. “In enacting the PSRA, Congress had specific policy goals, including increasing Medicare enrollment by USPS annuitants and promoting long-term financial health for the PSHB program, which require certain waivers compared to generally applicable policies in the FEHB program.”

William Shackelford, national president of the National Active and Retired Federal Employees Association, disagreed with OPM’s legal analysis in his comments to the agency. And although he said in a statement Monday that some provisions had been adjusted in response to his and other employee groups’ criticism, there are still scenarios in which postal retirees will see the cost of their medications prescription increase, due to penalties and other associated restrictions. with Medicare Part D enrollment.

“To mitigate the impact, the final rule added clarification requested by NARFE to ensure that MPDP coverage is “equal to or greater than” PSHB plan drug coverage by requiring that all PSHB plan drugs be covered at the same or less cost sharing, and added an exception to MPDP coverage for those living overseas,” Shackelford said. “But there are still some circumstances that might make PSHB plan coverage a better alternative. If the benefits of MPDP coverage in reducing drug costs for the individual are outweighed by income-based Medicare premium surcharges or the inability to combine drug company discounts with insurance coverage, Some post office retirees may have an interest in maintaining their PSHB plan drug coverage. Yet OPM’s final rule requires these postal retirees to accept the more expensive option or lose drug coverage completely through PSHB.

Once again, OPM declared in its settlement that its hands were tied by law and congressional intent.

“While commenters are correct that the PSRA does not explicitly require Part D-eligible annuitants and their family members to enroll in Medicare Part D as a condition of PSHB enrollment—and, indeed , CMS regulations allow individuals enrolled as a group in a Part D EGWP the right to opt out – the express purpose of the PSRA is to create cost savings for the PSHB program, in part by shifting costs to Medicare”, wrote the agency. “OPM believes that requiring Part D eligible annuitants and their Part D eligible family members to obtain PSHB prescription drug coverage through a Part D EGWP, rather than through their PSHB plan, better advance Congressional intent.