Key Takeaways
- Postal Service Health Benefits (PSHB) Open Season runs from November 11, 2024, to December 9, 2024. This is your opportunity to review, adjust, or change your health plan before the transition to PSHB on January 1, 2025.
- The Postal Service Reform Act of 2022 brought about this shift, ensuring that USPS employees and retirees move from the Federal Employee Health Benefits (FEHB) Program to the new PSHB system, keeping dental and vision benefits unchanged.
Time to Make Some Important Health Plan Decisions
Alright, USPS employees and retirees—mark your calendars because Open Season is right around the corner. From November 11, 2024, to December 9, 2024, you’ll have a chance to review your health plan options under the brand-new Postal Service Health Benefits (PSHB) Program. This is big news for everyone covered under the Postal Service Reform Act of 2022, which shifts you from the old FEHB system into PSHB starting January 1, 2025.
Don’t wait until the last minute—this is your one shot to ensure your health coverage is exactly how you want it for the upcoming year. Let’s break down what you need to know to make the best decision for you and your family during this Open Season.
Why the Switch to PSHB?
You might be wondering, “Why the change?” Well, it all goes back to the Postal Service Reform Act of 2022, which set the groundwork for a health benefits overhaul for USPS employees and retirees. This new system is designed to streamline healthcare coverage specifically for the postal workforce. While the transition sounds like a lot, the good news is that your coverage isn’t going away—it’s just evolving into something that better serves your unique needs as a postal worker or retiree.
While the structure might be new, many things will remain the same, like your access to dental and vision coverage through FEDVIP (Federal Employees Dental and Vision Insurance Program). So, if you’re concerned about routine checkups or prescription glasses, rest assured those benefits are sticking around.
What to Expect During Open Season
The 2024 Open Season isn’t just a time to sit back and let things happen. You’ll automatically be transitioned to a PSHB plan similar to what you currently have under FEHB, but that doesn’t mean you should stay on autopilot. This is your window to review your new plan, compare it to other options, and decide if it still fits your needs.
Take some time to evaluate your family’s healthcare needs for 2025. Did anything change over the past year? Maybe you need additional coverage, or perhaps you’d prefer a plan that offers lower premiums. This is your opportunity to weigh all those factors.
Also, don’t forget about your dental and vision plans under FEDVIP. While these won’t change, you can still make adjustments to these benefits if needed during the same Open Season window.
The Cost Breakdown
Let’s talk dollars and cents. Your biweekly premiums are split between you and the government, just like they were under FEHB. On average, the government will cover 72% of the total premium, leaving 28% for you to handle. Here’s what those numbers look like for 2025:
- Self Only: Total premium is $397.35, with your portion being around $111.26 biweekly.
- Self Plus One: The total premium is $858.89, and your biweekly share will be approximately $240.49.
- Self and Family: The total premium is $934.65, with your biweekly contribution of around $261.70.
These numbers are averages, so depending on your plan, the costs might vary a bit. But overall, this gives you an idea of what to expect financially.
Medicare and PSHB: What You Need to Know
If you’re approaching retirement, there are some important rules to keep in mind when it comes to Medicare. If you retire on or before January 1, 2025, and haven’t enrolled in Medicare Part B, you won’t be required to enroll to maintain your PSHB coverage. This is a significant point for retirees since enrolling in Medicare can have cost implications. However, if you retire after January 1, 2025, you’ll need to sign up for Medicare Part B when you become eligible (usually at age 65) to keep your PSHB plan.
Family members under your plan will also need to enroll in Medicare Part B when they become eligible, so keep this in mind as you plan for the future.
Prescription Coverage and Other Benefits
One of the great features of PSHB is that it includes Medicare Part D prescription drug coverage for Medicare-eligible participants. This means you won’t have to pay separate premiums for prescription drug coverage under Medicare, which is a relief for those managing multiple medications. Just be sure to review the drug formulary for your plan to understand how your prescriptions will be covered.
PSHB won’t affect other benefits like your Federal Employees’ Group Life Insurance (FEGLI) or Federal Long Term Care Insurance Program (FLTCIP), so you can continue with these plans as usual.
What About FEDVIP?
Let’s not forget about your dental and vision coverage. Under FEDVIP, you’ll still have access to benefits like routine exams, cleanings, and eyewear. There’s been a slight increase in premiums for 2025, but nothing drastic: dental premiums are up by an average of 2.97%, and vision premiums by just 0.87%. Considering the rising costs of healthcare, these modest hikes should be relatively easy to manage.
Need Help Choosing a Plan?
If the idea of combing through health plans feels overwhelming, don’t worry—you’re not alone. To make things easier, you can use the OPM Plan Comparison Tool during Open Season. This handy tool lets you compare PSHB and FEDVIP options side-by-side to find the best fit for your health needs and budget. Whether you’re looking for lower premiums or more comprehensive coverage, this tool can help you make an informed decision.
The Benefits of Medicare Integration
If you or your spouse are eligible for Medicare Part B, you could see some significant savings under PSHB. Many PSHB plans offer additional perks for Medicare enrollees, like reimbursement for Part B premiums or waived deductibles. These cost savings can really add up over time, helping reduce your overall healthcare expenses in retirement.
For those who enrolled in Medicare Part B during the Special Enrollment Period (SEP) from April to September 2024, USPS even covered late enrollment penalties, making it an excellent opportunity for those who missed their initial chance.
Final Thoughts on PSHB Open Season
As Open Season draws near, don’t overlook the importance of reviewing your health plan options. Whether you’re preparing for retirement, managing healthcare costs, or just looking to make sure you have the right coverage in place, now is the time to act. With the transition to PSHB launching on January 1, 2025, this is your chance to ensure a smooth shift into the new system and lock in the benefits that suit you best.
Remember, Open Season only comes once a year, and after December 9, 2024, you’ll be locked into your selections until the next enrollment period. Take advantage of the OPM Plan Comparison Tool, review your Medicare integration options, and don’t forget about dental and vision under FEDVIP. The choices you make now will set the tone for your healthcare coverage in 2025 and beyond.
