Senator Johnson has raised the concerns, about this unfunded liability's impact on Medicare, and I understand why we would want to look at the whole picture.

So there is no subsidy now that is achieved for that that is transferred to other mailers because we are doing this.

I thank all of you for your testimony.

This differential is in the difference of what the post office could buy the exact same coverage with a wrap-around... there is no question we add to the liability of the Medicare program.

S. 1486, as it stands now, is fatally flawed and we oppose it as written.

If you include employee health benefits, the benefit package for the average employee of the Postal Service, excluding management, is $35,000 a year.

But I would also tell you, in the private sector nobody stays on workers' comp in the private sector at retirement age. They go to the retirement.

Do you think the Postal Service should prefund its workers' compensation obligations?

I just had one more, and I wanted to hear your response to one of the comments Dr. Baker made about getting a better return on the funds that we have today.

So under this bill that we have which gives pricing authority to the Post Office, can you imagine a scenario where they would not consider total revenue volume associated with price increases, and look for that sweet spot?

Well, but what they are--I guess the point I am trying to make is, right now, the cost to have your business is a half-a-billion dollar loss.