Key Takeaways:

  1. PSHB Open Season: The Postal Service Health Benefits (PSHB) Open Season runs from November 11, 2024, to December 9, 2024, giving you time to explore your healthcare options and choose the best plan.

  2. New Launch Date: On January 1, 2025, PSHB will officially replace the Federal Employees Health Benefits (FEHB) program for postal workers, as part of the Postal Service Reform Act of 2022.

Why Sorting Through Your Health Plan is Crucial This Open Season

As a postal worker or retiree, you’re probably aware that big changes are coming to your healthcare. With the launch of the new Postal Service Health Benefits (PSHB) program on January 1, 2025, you’ll be transitioning from the familiar Federal Employees Health Benefits (FEHB) system. And while the change might seem overwhelming, don’t worry—I’ll help you navigate the options this Open Season (November 11, 2024 — December 9, 2024) and make sure you pick the best plan for your needs.

Here’s what you need to know and how to approach this important decision without breaking a sweat.

What’s New with PSHB?

The PSHB is replacing FEHB as mandated by the Postal Service Reform Act of 2022. But the transition isn’t just about a new name. Here are some of the key details:

  • Start Date: All postal workers and retirees will be automatically enrolled in the PSHB on January 1, 2025.
  • Open Season: From November 11 to December 9, 2024, you’ll have the opportunity to review your options, make adjustments, and choose the plan that best fits your health and budget.
  • No More Automatic Carryover: Unlike past years, this Open Season is crucial for ensuring you have a smooth transition. Even though you’ll be moved to a PSHB plan that mirrors your current FEHB coverage, it’s still essential to review the plan’s specifics. There may be changes in premiums or coverage that could impact your budget.

Start Here: Understand Your Options

During Open Season, you’re given a once-a-year opportunity to adjust your healthcare coverage. The OPM (Office of Personnel Management) will have a comparison tool available to help you sort through all the PSHB and FEDVIP options. So, where should you start?

  • Review Current Coverage: Look at your existing FEHB plan and see how it matches up with the PSHB options being offered. The transition plans will be similar, but some differences in premium costs, out-of-pocket expenses, and coverage levels might surprise you.

  • Compare Plans: Use the OPM tool to compare different PSHB plans. Pay close attention to monthly premiums, deductibles, and network coverage. Do the numbers make sense for your budget? Does the network include your preferred doctors and specialists?

  • Family Needs: Consider your family members. If you’re covering a spouse or dependents, make sure to look into PSHB plans that provide the best balance of cost and coverage for everyone under your plan.

Key Benefits and Costs of PSHB

Wondering what the financial aspect of PSHB looks like? Here’s a breakdown of average premium costs you can expect for 2025:

  • Self Only: $397.35 biweekly
  • Self Plus One: $858.89 biweekly
  • Self and Family: $934.65 biweekly

But don’t panic—these are just averages, and your actual costs might be lower based on the plan you choose. Plus, the government is covering 72% of the total premium for postal workers, leaving you responsible for just 28% of the cost.

To break it down even further:

  • If you’re selecting Self Only, your annual contribution would be approximately $2,892.76.
  • Self Plus One costs around $6,252.74 annually.
  • And if you’re covering a family, expect around $6,804.20 annually.

What About Dental and Vision?

Good news here—if you’re currently enrolled in FEDVIP for dental and vision care, nothing changes! You’ll continue to have access to the Federal Employees Dental and Vision Insurance Program (FEDVIP), and it’s a great time to review those plans, too. The premiums for 2025 are expected to increase slightly, with:

  • Dental premiums rising by about 2.97%.
  • Vision premiums only nudging up by around 0.87%.

Take this opportunity to review what your current plan covers, whether it’s routine dental exams, cleanings, or prescription eyewear, and make sure you’re getting the best deal.

Medicare Part B: To Enroll or Not?

If you’re nearing retirement or are already retired, this next part is essential. Depending on when you retire, the rules around Medicare Part B will impact your PSHB coverage.

  • Retire on or before January 1, 2025: You won’t be required to enroll in Medicare Part B to keep your PSHB plan.
  • Retire after January 1, 2025: Once you become eligible for Medicare (usually at 65), you’ll need to enroll in Medicare Part B to maintain your PSHB coverage.

This applies to your family members, too. If you’re covering a spouse or dependents under your plan, they’ll also need to enroll in Medicare Part B once they become eligible.

There are exceptions to this rule, like if you’re receiving care through the Department of Veterans Affairs or if you’re living outside the U.S.

Why Enroll in Medicare Part B?

Enrolling in Medicare Part B can actually help you save money in the long run. Many PSHB plans offer additional savings if you have Medicare Part B. These savings can include:

  • Lower out-of-pocket costs for services
  • Waived deductibles
  • Reimbursement of your Part B premiums

Plus, all PSHB plans for Medicare-eligible participants include Medicare Part D prescription drug coverage, meaning you won’t need to pay for a separate Part D plan.

Use the Open Season Wisely: Plan Ahead

The good thing about Open Season is that it’s predictable. You have from November 11, 2024, to December 9, 2024, to make all your healthcare decisions for the upcoming year. But don’t leave it to the last minute!

  • Check Plan Networks: Make sure that your preferred doctors, hospitals, and specialists are included in the network of the PSHB plan you’re considering.

  • Factor in Costs Beyond Premiums: Consider other factors like copayments, coinsurance, and deductibles. A lower premium plan might end up being more expensive if it comes with higher out-of-pocket costs.

  • Check for Hidden Savings: If you’re enrolled in both PSHB and Medicare Part B, don’t overlook the potential savings. Look for PSHB plans that offer premium reimbursement and reduced deductibles.

Still Have Questions? Use Available Tools

Don’t feel like you have to make these decisions in a vacuum. The OPM plan comparison tool is your best friend during Open Season. It’ll help you narrow down your choices, based on your specific needs and budget.

  • Plan Out Time for Research: Set aside a couple of days to really dive into the options. It’s worth it to ensure that your family’s health and your financial future are well-protected.

Choose Your Best Option Before Time Runs Out

This Open Season isn’t just about a routine check-in on your health plan—it’s your chance to take control of your healthcare as a postal worker or retiree. With the shift from FEHB to PSHB starting on January 1, 2025, you want to make sure your new plan fits your needs, your budget, and your long-term healthcare goals.

By reviewing your options early and using the tools provided, you’ll feel confident walking into 2025 with the coverage that works for you and your family.