Note 7 — Health benefit programs

Current Employees

Substantially all career employees are covered by the Federal Employees’ Health Benefits Program (FEHBP). OPM administers the program and allocates the cost of the program to the various participating government agency employers. The Postal Service cannot direct the costs, benefits, or funding requirements of the plan and, therefore, accounts for program expenses using multiemployer plan accounting rules.

The Postal Service cost is based upon the weighted-average premium cost of the various employee coverage choices and the specific coverage choices made by employees. Employees paid approximately 20% of the premium costs in 2010, 19% in 2009 and 18% in 2008. Postal Service employee health care expense was $5,141 million in 2010, $5,294 million in 2009, and $5,376 million in 2008.