Key Takeaways

  1. FEDVIP and FEGLI Coverage Remains Unaffected: Despite the transition to the new Postal Service Health Benefits (PSHB) program on January 1, 2025, USPS employees and retirees can still count on dental, vision, and life insurance coverage through FEDVIP and FEGLI.

  2. Open Season 2024 is Key: From November 11, 2024, to December 9, 2024, USPS employees and retirees will have the chance to review and make changes to their PSHB and FEDVIP coverage, ensuring they choose the best plan for their needs.

Keeping FEDVIP and FEGLI After the PSHB Shift

The transition to the new Postal Service Health Benefits (PSHB) program is a significant change for USPS employees and retirees. The good news is, even though your health plan is shifting from the Federal Employees Health Benefits (FEHB) program to PSHB on January 1, 2025, your other crucial insurance programs, like the Federal Employees Dental and Vision Insurance Program (FEDVIP) and the Federal Employees’ Group Life Insurance (FEGLI), will stay right where they are.

What Does This Change Mean for You?

If you’ve been following the Postal Service Reform Act of 2022, you’ve probably heard that the new PSHB program is designed to bring about some key improvements in how healthcare coverage is managed for postal workers. However, this shift doesn’t touch your dental, vision, or life insurance benefits—so there’s no need to worry about losing those valuable protections.

Starting January 1, 2025, your PSHB plan will take over the role your FEHB plan once had, but everything else stays intact. You can still rely on FEDVIP to cover your dental and vision care needs, and FEGLI will continue providing the life insurance coverage you’ve come to depend on.

Open Season: A Perfect Time to Review Your Options

The most important period for USPS employees and retirees this year is the upcoming Open Season, running from November 11, 2024, to December 9, 2024. This window gives you the opportunity to review your coverage and make any necessary adjustments before the PSHB plans officially take effect in 2025.

During this Open Season, you’ll be automatically enrolled in a PSHB plan that mirrors your current FEHB coverage, but you can explore your options and make changes if you feel another PSHB plan better suits your needs. The best part? While reviewing your healthcare options, your dental, vision, and life insurance through FEDVIP and FEGLI will remain available without interruption.

FEDVIP: Your Dental and Vision Benefits Remain

As part of your benefits as a USPS employee or retiree, FEDVIP continues to provide coverage for routine dental exams, cleanings, and vision services like prescription eyewear. Nothing about this program changes with the introduction of PSHB—so you can keep counting on FEDVIP to take care of your teeth and eyes.

There are, however, some minor premium adjustments for 2025. Dental premiums will see an average increase of 2.97%, while vision premiums will rise by a modest 0.87%. While these bumps are small, they do reflect the growing costs of healthcare across the board, but FEDVIP remains an affordable option for maintaining your dental and vision health.

You’ll still be able to make adjustments to your FEDVIP plan during Open Season. Whether you need to tweak your coverage or stick with what’s working, this annual window gives you the flexibility to keep your dental and vision benefits just right.

FEGLI: Life Insurance Without Changes

Alongside FEDVIP, the Federal Employees’ Group Life Insurance (FEGLI) program continues as it always has, without disruption from the PSHB shift. Life insurance is a cornerstone of financial security, especially for USPS employees and retirees who want to make sure their families are taken care of.

The FEGLI program remains fully in place after the transition to PSHB. That means you don’t have to worry about losing or changing your life insurance coverage because of the new healthcare program. Like FEDVIP, you can review your FEGLI coverage during Open Season, ensuring your policy fits your needs for the year ahead.

How Medicare Part B Works with PSHB

For those retiring after January 1, 2025, there’s one important detail to keep in mind: Medicare Part B will play a bigger role in your healthcare coverage. Once you’re eligible for Medicare (usually at age 65), you’ll need to enroll in Part B to continue receiving PSHB benefits. This rule applies to family members on your plan as well.

The good news is that this integration between Medicare and PSHB often results in cost savings, with benefits like Part B premium reimbursements, waived deductibles, and lower out-of-pocket expenses. These savings can help offset the additional cost of Medicare Part B and make your overall healthcare expenses more manageable in retirement.

If you retired before January 1, 2025, you’re not required to enroll in Medicare Part B to keep your PSHB coverage, although doing so could still lead to significant savings.

Additional Programs Staying Strong

Beyond FEDVIP and FEGLI, the transition to PSHB doesn’t affect other important programs either. You’ll continue to have access to the Federal Long Term Care Insurance Program (FLTCIP), which provides protection for long-term care services. This is essential for anyone planning ahead for the costs of extended healthcare services in the future.

Prescription drug coverage also remains integrated into your PSHB plan, including Medicare Part D coverage for those eligible. This ensures you don’t have to juggle separate Part D premiums, keeping your prescription costs under one manageable umbrella.

What’s Next? Preparing for 2025 and Beyond

The transition to PSHB represents a major change in the way healthcare benefits are handled for USPS employees and retirees, but it doesn’t mean you’ll lose out on the other valuable benefits you rely on. Your dental, vision, and life insurance programs remain unaffected, giving you peace of mind as you make this transition.

With Open Season just around the corner, now’s the time to start thinking about your coverage options. Whether you’re satisfied with your current benefits or are considering making some adjustments, this enrollment period is your chance to get everything squared away before PSHB launches on January 1, 2025.

The key to staying ahead of the changes is to take a close look at your PSHB plan, FEDVIP coverage, and FEGLI policy, ensuring all your bases are covered for the new year. Don’t forget: Open Season runs from November 11 to December 9, 2024, so mark your calendar and be ready to make the best choices for your health and well-being.

Wrapping Up: No Need to Worry About Losing FEDVIP and FEGLI

As we approach the launch of the new Postal Service Health Benefits program, remember that your essential dental, vision, and life insurance benefits aren’t going anywhere. FEDVIP and FEGLI continue to offer the protection and coverage you’ve come to trust, so you can feel confident as you move into 2025.

Take advantage of the upcoming Open Season to review your options and make sure you’re covered for the future. With PSHB kicking in on January 1, 2025, it’s a good time to refresh your plans and ensure your benefits remain in top shape.