Key Takeaways

  • While the Postal Service Health Benefits (PSHB) Program introduces significant updates, many core elements of your health coverage and retirement benefits remain unchanged.

  • Understanding what stays the same helps you plan with confidence, especially during Open Season or if you’re nearing retirement.

Many Familiar Benefits Continue Under PSHB

The rollout of the PSHB Program in 2025 has understandably raised questions. If you’re a United States Postal Service (USPS) employee or retiree, you’ve likely heard about the transition from the Federal Employees Health Benefits (FEHB) Program to PSHB. This shift marks a major update for postal workers, but rest assured—not everything is different.

In fact, several key aspects of your benefits, eligibility, and coverage structures remain consistent. That means you can count on the familiar systems you’ve grown used to while also taking advantage of new enhancements.

Let’s explore what stays the same so you can feel more at ease navigating these changes.

1. Your FEHB Coverage Continues Until Transition

If you’re currently enrolled in the FEHB Program, your coverage stays active up through the end of 2024. The PSHB Program officially takes effect starting January 1, 2025. Until that date, there’s no interruption in your benefits.

You don’t need to take any immediate action unless you’re planning to retire, change coverage, or experience a qualifying life event. During the November–December 2024 Open Season, you will have the opportunity to select a PSHB plan or let the automatic enrollment take effect.

2. Government Contributions Still Help Cover Premiums

Just like with FEHB, the federal government continues to pay a substantial portion of your health insurance premiums under PSHB. The contribution formula remains the same: approximately 70% of the total premium, with you covering the remaining share.

This helps stabilize costs and ensures your health benefits remain affordable, even under the new program.

3. Eligibility Rules Haven’t Changed

Your eligibility for health insurance doesn’t change under the PSHB transition.

  • If you were eligible for FEHB, you’re eligible for PSHB.

  • Employees must still work in a position eligible for health benefits.

  • Retirees must have been eligible at the time of retirement and meet the same requirements as under FEHB.

Family member eligibility also stays the same:

  • Spouses

  • Children under 26

  • Disabled children over 26 (if criteria are met)

4. Enrollment Periods Remain Familiar

You still have access to Open Season and Special Enrollment Periods (SEPs), just like before. Here’s what remains the same:

  • Open Season occurs each year from November to December, when you can review and make changes to your health plan.

  • Special Enrollment Periods are still available for life events such as marriage, divorce, birth, or loss of other health coverage.

The process of enrolling, updating dependents, or switching plans follows the same pattern you’ve already experienced.

5. Retirement Eligibility and Coverage Continuation Stay in Place

Your ability to continue health insurance into retirement has not changed. To maintain your coverage under PSHB as a retiree, you still need to meet the same basic requirements:

  • Be eligible to retire under a retirement system such as FERS or CSRS.

  • Be continuously enrolled (or covered as a family member) in FEHB or PSHB for the five years leading up to retirement or since your first opportunity to enroll.

This means your long-term planning for retirement health coverage can stay on track.

6. Coordination with Medicare Is Still an Option

If you’re 65 or older or nearing Medicare eligibility, rest assured that the PSHB Program continues to coordinate with Medicare, much like FEHB has done. Medicare-eligible retirees still have the choice to enroll in Medicare Part A and Part B and pair it with their PSHB coverage.

Although certain PSHB enrollees must now enroll in Part B to keep full drug coverage, the general principle of coordination remains in place.

Benefits of coordination continue to include:

  • Lower out-of-pocket costs

  • Reduced deductibles in some plans

  • Expanded provider access

7. Prescription Drug Coverage Still Applies

If you’re not yet eligible for Medicare, your prescription drug coverage under PSHB remains similar to what you had under FEHB. You’ll still have access to:

  • A network of local and national pharmacies

  • Tiered copayment structures

  • Mail-order options (depending on plan)

For Medicare-eligible enrollees, drug coverage integrates with Medicare Part D through an Employer Group Waiver Plan (EGWP). This model has been used successfully in the past and is continuing under PSHB.

8. FEDVIP and Other Programs Are Unaffected

The PSHB transition only applies to your primary health insurance. It does not impact:

  • FEDVIP (Federal Employees Dental and Vision Insurance Program)

  • FEGLI (Federal Employees’ Group Life Insurance)

  • FLTCIP (Federal Long Term Care Insurance Program)

  • FSAFEDS (Flexible Spending Accounts)

If you’re enrolled in these programs, you don’t need to make any changes unless your situation otherwise calls for it.

9. Plan Options Are Still Varied

Just like with FEHB, the PSHB Program gives you a range of plan choices. While the exact plans and carriers might differ, the overall setup remains the same:

  • HMO, PPO, and High Deductible Health Plans (HDHPs) are available.

  • You can choose Self Only, Self Plus One, or Self and Family coverage.

  • All plans meet minimum essential coverage standards.

This continuity allows you to evaluate options based on your needs, network preferences, and cost-sharing levels, just as you’ve always done.

10. Use of Online Portals Continues

If you’re an active USPS employee, you’ll still use LiteBlue for benefit management.

Retirees will continue to use KeepingPosted.org to access health benefits and retirement information. These platforms remain your primary source for:

  • Open Season elections

  • Updating dependent information

  • Viewing plan brochures and benefit summaries

No new learning curve is required for accessing your health plan data or making changes.

Don’t Forget These Familiar Points

There are other smaller but important constants that will help you feel grounded during the PSHB transition:

  • You’ll still receive an Annual Notice of Change outlining any plan updates.

  • You can call OPM or your plan’s customer service for help during Open Season.

  • Paper and online enrollment forms are both available.

In short, many day-to-day processes are continuing just as they did under FEHB.

What You Should Focus On Going Forward

As you adjust to PSHB, your attention should turn to understanding what’s new—such as Medicare Part B enrollment requirements for certain retirees—and evaluating plan changes during Open Season.

However, don’t underestimate the value of knowing what’s consistent. These familiar elements ensure a sense of stability and continuity as you move through the 2025 transition.

Make time each year during Open Season to:

  • Review your current plan’s coverage

  • Consider whether your health needs have changed

  • Examine new PSHB plan brochures for differences or improvements

This annual habit will ensure that you’re always matched with the best available option.

Familiar Foundations Still Support Your Coverage

While PSHB introduces a new era for USPS health benefits, it doesn’t dismantle the core structure you’ve relied on for years. Many of the rules, protections, and processes remain in place, giving you a solid foundation to move forward with confidence.

If you’re ever unsure, don’t hesitate to speak with a licensed agent listed on this website. They can help walk you through the fine print and make sure your choices support your long-term health and retirement goals.