Bill Overview
Title: Postal Service Reform Act of 2022
Description: 2 This bill addresses the finances and operations of the U.S. Postal Service (USPS). The bill requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefits Program within the Federal Employees Health Benefits Program under which OPM may contract with carriers to offer health benefits plans for USPS employees and retirees. The bill provides for coordinated enrollment of retirees under this program and Medicare. The bill repeals the requirement that the USPS annually prepay future retirement health benefits. Additionally, the USPS may establish a program to enter into agreements with an agency of any state government, local government, or tribal government, and with other government agencies, to provide certain nonpostal products and services that reasonably contribute to the costs of the USPS and meet other specified criteria. The USPS must develop and maintain a publicly available dashboard to track service performance and must report regularly on its operations and financial condition. The Postal Regulatory Commission must annually submit to the USPS a budget of its expenses. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats (e.g., large envelopes). The USPS Office of Inspector General shall perform oversight of the Postal Regulatory Commission.
Sponsors: Rep. Maloney, Carolyn B. [D-NY-12]
Target Audience
Population: Individuals relying on or working for the USPS
Estimated Size: 331000000
- Postal Service employees and retirees will be directly affected as their health benefits programs and enrollment through Medicare will be updated.
- USPS operations and financial management will be impacted by the repeal of the pre-funding mandate for retirement health benefits.
- Residents of the United States rely on the USPS for mail delivery, affecting both those who send and receive mail.
- Government agencies that might collaborate with the USPS for nonpostal services could be impacted.
- Given the USPS's large operational role, modifications in its efficiency and service tracking through the performance dashboard will affect broad demographics relying on its services.
Reasoning
- The key groups directly impacted by the Postal Service Reform Act of 2022 are USPS employees and retirees, as the act adjusts their health benefits and retirement plans.
- General improvements in USPS efficiency and cost savings due to the repeal of the retirement health benefits pre-funding and new collaborations will indirectly affect all U.S. residents relying on postal services.
- Households and businesses across various states may experience changes in postal service reliability and scope due to operational changes.
- The policy's budget constraints mean not all envisioned benefits may be immediately realized or widespread, especially in more rural or underserved areas.
Simulated Interviews
USPS Postal Worker (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I'm hopeful that the changes will lead to better healthcare options for me and my colleagues.
- The repeal of the pre-funding mandate relieves financial pressure, which is good for job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Retired USPS Employee (Austin, TX)
Age: 63 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Linking health benefits to Medicare worries me due to the complexity of coordination.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Freelance Graphic Designer (Chicago, IL)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I hope that increased efficiency will mean more reliable service without increased costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Small Business Owner (New York, NY)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- A more transparent and efficient USPS would really help my business. Regular updates on performance would be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
State Government Official (Seattle, WA)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- The potential for the USPS to offer more services is exciting. It could open new avenues for government collaboration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
College Student (Miami, FL)
Age: 23 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I mostly use USPS for receiving packages, and I hope for timely deliveries. Dashboards don't impact me directly but seem useful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
USPS Delivery Supervisor (Birmingham, AL)
Age: 37 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Relieving financial burdens should help improve resource allocations at my branch, easing staff challenges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Retired (Non-USPS) (Phoenix, AZ)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I've seen the postal service change a lot over the years. Any improvements in operations are welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Farm Owner (Rural Kansas)
Age: 64 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- USPS is a lifeline for us in rural areas. Stability in service is crucial for getting our medications.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Tech Start-up Founder (San Francisco, CA)
Age: 42 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Cost-effective and reliable USPS service could support our logistic needs as we grow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $700000000)
Year 2: $450000000 (Low: $250000000, High: $650000000)
Year 3: $400000000 (Low: $200000000, High: $600000000)
Year 5: $350000000 (Low: $150000000, High: $550000000)
Year 10: $300000000 (Low: $100000000, High: $500000000)
Year 100: $200000000 (Low: $50000000, High: $400000000)
Key Considerations
- The scale of savings from the repeal of the prepay requirement for retiree benefits significantly outweighs the costs of administering new health benefits and operations.
- The financial stability of USPS could improve long term service reliability, impacting indirect economic activities.
- Potential new revenue streams from USPS providing nonpostal services could further offset costs.