Mail insurance operation at risk of collapse due to staffing deficiencies at OPM
The Office of Personnel Management (OPM) is facing critical resource issues with its Postal Service Health Benefits (PSHB) program, which provides health benefits to approximately 2 million Postal employees, annuitants, and their family members.
The central enrollment platform for the PSHB program, a new system intended to eventually replace the decentralized legacy enrollment system for the Federal Employees Health Benefits (FEHB) program, is at risk of operational failure due to staffing gaps. OPM currently has only three employees out of the 11 total positions needed to manage this platform effectively.
The Office of the Inspector General (IG) has reported critical shortages and underfunding risks with no clear contingency plan in place. These staffing shortages are a result of ongoing OPM layoffs, retirements, and a hiring freeze—dating back to the Trump administration—which have created insufficient staffing levels. Four positions are vacant due to the hiring freeze, and three others are expected to leave under a deferred resignation program.
The IG warns that if the PSHB program processes and systems cease operations or cannot be replaced, the PSHB program will be unable to process future qualifying life events, upcoming 2025 Open Season transactions, and expand central enrollment capabilities to the entire FEHB program.
Current efforts to address these issues include OPM's claims of taking steps to ensure adequate staffing and funding. However, these efforts have been deemed insufficient by the IG. The IG has also warned that Congress’s failure to provide additional funding requested by OPM for 2024 may further hamper the administration of the PSHB. OPM lacks a contingency plan to maintain continuity of operations without guaranteed funding, increasing the risk of operational failure.
The National Association of Postal Supervisors (NAPS) has expressed strong concerns about these issues and is actively communicating with USPS and congressional overseers to ensure that the 2025 Open Season proceeds smoothly, emphasizing the necessity of securing the necessary resources to protect postal employees’ health benefits.
In a positive development, OPM's associate director of healthcare and insurance has outlined plans for restructuring to maintain and operate systems necessary for program operations. However, the agency's PSHB program is still facing budget issues, with no clear back-up funding plan.
The upcoming Open Season for federal employees and retirees in both the FEHB and PSHB programs will run from Nov. 10 to Dec. 8. The IG's report underscores the importance of addressing these staffing and funding issues to ensure a smooth and successful Open Season.
The OPM spokesperson emphasized the agency's commitment to the ongoing success of the PSHB program and the delivery of world-class benefits to federal and USPS employees and annuitants and their family members. Despite these challenges, the agency is working diligently to address these issues and ensure the stability and administration of the Postal Service Health Benefits Program.
- The ongoing staffing shortages and budget cuts at the Office of Personnel Management (OPM) may hinder the smooth operation of the Postal Service Health Benefits (PSHB) program, potentially leading to inadequate processing of life events, the 2025 Open Season transactions, and expansion of central enrollment systems for the entire Finance industry's Federal Employees Health Benefits (FEHB) program.
- The National Association of Postal Supervisors (NAPS) has urged congressional overseers to collaborate with USPS to provide the necessary funding and resources, emphasizing that the industry's health benefits for federal and USPS employees, annuitants, and their family members hinge on the success of the upcoming Open Season and the continuity of the Postal Service Health Benefits (PSHB) program.
