The U.S. Postal Service is in trouble. So Congress is coming to the rescue by debating a proposed “Postal Service Reform Act” (HR 3076) to “stabilize” the independent agency’s financing and put it on a path of fiscal responsibility.
But although the legislation passed Tuesday by the House and now before the Senate might end up digging the Postal Service out of a fiscal hole, it would worsen Medicare’s already weakened financial condition.
The operation is an annual multibillion-dollar loser, but Americans depend on the U.S. mail and are happy to get it, even when it is inexplicably late.
Among the biggest issues facing the Postal Service is how to handle the large chunk of unfunded obligations for retirees’ health benefits. These liabilities amount to a whopping $75 billion, the amount of benefits promised but not financed.
The Government Accountability Office, the congressional watchdog agency, detailed the extent of the Postal Service problem in a 2020 report. It said the Postal Service has accumulated a total debt of $188 billion (about $580 per person in the U.S.), including unfunded health benefit obligations. This amounts to over 250% of annual revenue.
So, what to do? Sponsors of the House bill, which passed with a vote of 342-92 as 120 Republicans joined all Democrats, decided to shift the Postal Service’s health benefit costs to the Medicare program.
read more:
https://www.dailysignal.com/2022/02/10/its-a-bad-idea-to-tap-medicare-to-bail-out-postal-service/
Replies
I am in Waco, TX, about 1,000 miles from Maricopa AZ. On 18 Jan a small package I ordered left Maracopa and was sent to Los Angeles CA for processing. It left Los Angeles on 22Jan and was sent to Jersy City NJ for processing. on 31 Jan it left Jersy City and was sent to Grand Prairie, TX for processing (about 100 miles No. of Waco, TX). on 7 Feb it left Grand Prairie and tracking says it arrived in Waco on 12 Feb - yet to be delivered. The Postal Service 's "TROUBLE" is in management. The proper response to inadequate management is to replace the managers, not throw more money at the system.
Yep and they keep raising postage rates. For what - bad service?
Sadly, you'll get no argument from me on that.
Chet, the bureaucrats and political hacks have NO intention to make anything better nor more efficient because their only concern is how much money they can put in their pockets!!!!!!!!!!
The U.S. Postal Service must operate at a Self Sufficient Business. Rid itself of Bulk Mail prices. Charge realistic costs of receiving/deliver/maintenance/replacement/wages/retiements/etc, just as any other business/service. Many of us rely on the Postal Service from lack of trust and security via computers, the personal contact of written letters, the paying of bills and services via checks rather than through electronic devices or direct deposit/withdrawal. We the trust and enjoy the privacy of the Postal Service. Receiving a handwritten letter knowing the effort behind it rewards us knowing we are thought of with more value than the minute or two required for an email. As with the Laws the Rates should apply equally to everyone.
Lynn Bryant DeSpain
Any Governmental usage of Senior Citizen Funds will have Generational Repercussions throughout every Elected/Appointed Office!
Lynn Bryant DeSpain
To: abutom@aol.com
Sent: Sat, Jan 29, 2022 1:56 pm
Subject: TRUMP IS COMING
If the USPS would stop delivery these shopper newspapers at no charge and all the political advertisements at reduced rates, it might be more financially secure. Tapping into Medicare funds is not a good idea - unless you are talking about not giving Medicare to illegal aliens.
I think it night be time to privatize the postal service.
Just another stupid wasteful move by a inept government.
Are they frickin' nuts? The government and postal service divvy out large retirement benefits that far exceed the private sector's. Ben Franklin had no idea how the "Mail" service would be expanded to a make work project. Accckkk