Key Takeaways:
- The PSHB program officially launches on January 1, 2025, moving USPS employees and retirees from their current healthcare system to Postal Service Health Benefits (PSHB).
- Open Season 2024, from November 11 to December 9, 2024, allows you to review and select your PSHB plan, ensuring you have the right coverage in place for the transition.
Making the Switch to PSHB: USPS and OPM Have Your Back
The countdown to a major healthcare shift for USPS employees and retirees has begun. Thanks to the Postal Service Reform Act of 2022, the Postal Service Health Benefits (PSHB) program is set to replace the current Federal Employees Health Benefits (FEHB) program starting January 1, 2025. If you’re feeling a bit overwhelmed by the upcoming changes, don’t worry—USPS and OPM have plenty of resources to make this transition as smooth as possible. From comprehensive guides to enrollment tools, there’s help at every turn.
What Is the PSHB and Why Is It Happening?
The PSHB is a brand-new health benefits program designed specifically for postal workers and retirees. It’s part of the larger effort to modernize the Postal Service under the Postal Service Reform Act of 2022. This shift means that USPS employees and retirees will move from their previous FEHB plans to the new PSHB system. The great news? You’ll still have access to dental and vision coverage through the Federal Employees Dental and Vision Insurance Program (FEDVIP), which remains unaffected.
But here’s the kicker: while your basic health plan changes, you won’t have to deal with any disruptions in your healthcare coverage during the switch. The transition is being handled automatically for current plan members, with coverage starting right after the January 1, 2025 deadline.
PSHB Open Season: Mark Your Calendars
Here’s the critical timeline: the 2024 Open Season will run from November 11 to December 9, 2024. This period gives you a chance to review your new PSHB options and make any necessary changes. Although USPS employees and retirees will automatically be placed into a PSHB plan similar to their current coverage, it’s highly recommended to go over the options available to ensure it meets your health and financial needs.
During Open Season, you can:
- Evaluate and compare PSHB plans using tools provided by the Office of Personnel Management (OPM).
- Make adjustments to your FEDVIP coverage if needed. While dental and vision insurance remains the same, premiums are expected to rise slightly (2.97% for dental and 0.87% for vision).
So, while some things are automatic, others still need your attention. Take advantage of this window to review everything and avoid any surprises in 2025.
Need Help Deciding? OPM’s Got You Covered
With such a significant change, it’s no wonder you might feel unsure about which plan to pick. Luckily, OPM offers a range of online tools designed to help USPS employees and retirees find the perfect PSHB and FEDVIP plans for their unique needs. One of the most helpful resources is the OPM plan comparison tool, which lets you:
- Compare premiums and coverage options side by side.
- See what level of coverage you’re likely to get under each plan.
- Evaluate how different plans fit into your budget and healthcare needs.
This tool is a lifesaver when it comes to narrowing down the best options without spending hours reading through policy documents.
Breaking Down PSHB Premiums for 2025
One of the biggest questions on your mind might be, “How much will this cost me?” While individual plan premiums vary, OPM provides a handy breakdown of average total biweekly premiums for 2025. Here’s a quick look at what you can expect:
- Self Only: $397.35 (Employee contributes $111.26 biweekly)
- Self Plus One: $858.89 (Employee contributes $240.49 biweekly)
- Self and Family: $934.65 (Employee contributes $261.70 biweekly)
Keep in mind that the government covers 72% of the total premium, leaving employees responsible for the remaining 28%. Over the course of a year, this translates into an annual employee cost of about $2,892.76 for individual coverage and $6,804.20 for family plans, based on 26 pay periods.
Medicare Part B: To Enroll or Not to Enroll?
The integration of Medicare Part B with PSHB plans is another factor that retirees need to consider. Here’s the scoop:
- If you retire on or before January 1, 2025, and haven’t enrolled in Medicare Part B, there’s no requirement for you to do so to maintain your PSHB coverage. This also applies to any family members on your plan.
- For those retiring after January 1, 2025, enrolling in Medicare Part B will be necessary once you become eligible for Medicare (typically at age 65). This also applies to your dependents, so everyone needs to be on board.
However, there are some exceptions. For example, if you’re receiving care through the Department of Veterans Affairs (VA) or Indian Health Services (IHS), you may not need to enroll in Medicare Part B. Also, for those living outside the U.S., this requirement may be waived.
Special Enrollment Period: Your Lifeline If You Missed the Deadline
If you or a family member were eligible for Medicare Part B but missed out, there was a Special Enrollment Period (SEP) from April to September 2024. USPS retirees could enroll without incurring late penalties during this time. If you missed it, don’t worry—there are still ways to adjust your Medicare enrollment in the future.
The Benefits of Enrolling in Medicare Part B
Even though it’s not required for everyone, enrolling in Medicare Part B can offer some nice perks. Many PSHB plans work hand-in-hand with Medicare Part B to help you save on healthcare costs. Some plans may reimburse your Part B premiums, waive deductibles, or offer lower out-of-pocket costs for medical services, making it worth considering.
Additionally, all PSHB plans for Medicare-eligible participants will include Medicare Part D prescription drug coverage. This means you won’t need to pay separate premiums for a Part D plan—another way to help trim your healthcare costs in retirement.
What Happens to My Other Federal Benefits?
The PSHB switch won’t affect your access to other federal insurance programs like FEDVIP (for dental and vision), Federal Employees’ Group Life Insurance (FEGLI), or the Federal Long Term Care Insurance Program (FLTCIP). If you’re enrolled in these programs, rest assured that they will continue as usual, offering peace of mind as you navigate the healthcare transition.
Extra Help for Navigating the Switch
It’s always good to know you’re not alone in this process. USPS and OPM are offering plenty of resources to help you understand and choose the right PSHB plan. These include:
- Webinars and information sessions to walk you through your options.
- Printed guides and FAQs that break down the transition in simple terms.
- Customer service hotlines for more specific questions or concerns.
So, take full advantage of these tools during Open Season to make sure you’re set for the big switch in January.
A Smooth Transition into 2025 and Beyond
The move to the PSHB system doesn’t have to be stressful, especially with all the resources at your disposal. From detailed comparison tools to webinars and hotlines, USPS and OPM are making sure every employee and retiree is well-prepared for the transition. So, as Open Season approaches, take a deep breath, explore your options, and get ready to step into the PSHB era confidently.
