Key Takeaways:
- Open Season 2024 is critical: USPS employees and retirees need to review their health plans carefully due to the transition from FEHB to PSHB, starting January 1, 2025.
- New Medicare rules: Retirees after January 1, 2025, must enroll in Medicare Part B when eligible to retain PSHB coverage, making this Open Season a pivotal moment for long-term healthcare planning.
Why USPS Open Season 2024 Matters
This year, the USPS Open Season, running from November 11, 2024, to December 9, 2024, is shaping up to be more important than ever for employees and retirees alike. It’s not just about tweaking your current health benefits. This year, it’s about adapting to the Postal Service Health Benefits (PSHB) program that’s replacing the familiar FEHB. The Postal Service Reform Act of 2022 set this change in motion, and the upcoming January 1, 2025 launch date marks the beginning of a whole new health benefits era for the Postal Service workforce.
So why is it so critical? Let’s break it down.
The Big Transition to PSHB
For decades, USPS employees and retirees have relied on the Federal Employees Health Benefits (FEHB) program to manage their healthcare. But starting January 1, 2025, the PSHB takes its place, impacting all USPS employees and retirees.
The good news? The transition will be smooth for most, with PSHB offering plans similar to what you’ve had under FEHB. During the Open Season in 2024, employees and retirees will automatically be transferred to a PSHB plan, but here’s where the importance of active participation comes in—you can review and, if necessary, adjust your coverage options to ensure they still meet your needs. This isn’t a time to sit back and let things happen. It’s essential to check whether the plan you’re moved to still aligns with your current and future healthcare needs.
Key Changes to Be Aware Of
There are some crucial aspects to consider this year, beyond just the usual concerns of plan coverage and costs.
Medicare Part B Enrollment
One of the biggest changes involves Medicare Part B requirements. If you retire after January 1, 2025, and become eligible for Medicare, you’ll need to enroll in Medicare Part B to retain your PSHB coverage. It’s a big shift because previously, you might not have needed to enroll in Part B to keep your federal health benefits.
For those retiring before January 1, 2025, there’s no requirement to enroll in Medicare Part B, and that applies to your family members under your plan, too. However, for those retiring later, all Medicare-eligible family members will need to sign up for Part B as well. This requirement brings added costs, but some PSHB plans may offer benefits that ease the financial burden, such as Part B premium reimbursements and reduced out-of-pocket costs for healthcare.
These new rules mean that your retirement healthcare costs will be impacted in ways you might not have expected, making this Open Season a critical time to evaluate your options.
Planning for Retirement? Timing Is Everything
If you’re nearing retirement, this Open Season holds even more weight. You’ll want to pay attention to how your healthcare needs may change over the next few years. While PSHB offers a similar structure to FEHB, the integration with Medicare Part B adds another layer of decision-making for retirees.
Knowing your retirement timeline is key. If you’re retiring on or after January 1, 2025, you’ll be required to navigate the Medicare system alongside your PSHB plan when the time comes. Taking advantage of this Open Season to review plan details, including any Medicare-related changes, will help you avoid surprises down the line.
PSHB Premiums: What to Expect
When you’re assessing plans during Open Season, one of your first thoughts might be, “How much is this going to cost me?” The premium breakdown for PSHB is similar to what you’re used to with FEHB, but it’s always worth double-checking how it fits into your budget.
Here’s what the average biweekly premiums for 2025 are expected to look like:
- Self Only: $397.35
- Self Plus One: $858.89
- Self and Family: $934.65
These premiums include the government’s contribution of 72% of the total cost, leaving USPS employees and retirees to pay the remaining 28%. Annually, this breaks down to:
- Self Only: $2,892.76
- Self Plus One: $6,252.74
- Self and Family: $6,804.20
It’s essential to know these numbers when planning for your financial future. While the government covers a significant portion of the cost, your 28% share can still add up, especially if your healthcare needs are high. Use this Open Season to make sure your plan offers the best value for your situation.
FEDVIP Coverage Continues
The Federal Employees Dental and Vision Insurance Program (FEDVIP) is unaffected by the switch to PSHB, so your dental and vision benefits will remain the same. This is great news, as you can continue to count on coverage for things like routine cleanings, dental exams, and prescription eyewear. It’s one less thing to worry about as you navigate the changes to your main healthcare plan.
Just keep in mind that premium increases for FEDVIP are on the horizon. Dental premiums are set to increase by an average of 2.97% in 2025, and vision premiums will see a smaller bump of 0.87%. It’s worth considering whether your current FEDVIP plan still fits your needs or if you should shop around for a better deal during this Open Season.
Cost Savings with Medicare
For retirees already enrolled in Medicare Part B, there could be some additional savings available. Many PSHB plans offer cost-saving benefits for those on Medicare, such as:
- Part B premium reimbursements
- Lower out-of-pocket expenses
- Waived deductibles
These perks can help offset the costs associated with Medicare, making retirement healthcare more affordable. If you’re nearing retirement age, be sure to check whether your PSHB plan offers these kinds of benefits during Open Season.
Tools to Help You Choose
Choosing the right plan can feel overwhelming, especially with the new PSHB program and potential Medicare considerations. Thankfully, tools like the OPM plan comparison tool will be available during Open Season to help you make informed decisions. This tool will allow you to compare the features, costs, and coverage options for the PSHB and FEDVIP plans, ensuring that you choose the plan that best fits your needs.
Review and Make the Right Choice
With so many changes coming into play, this isn’t the year to passively stick with your current plan. Instead, take full advantage of Open Season to review your options. Whether it’s choosing a new PSHB plan or adjusting your dental and vision coverage through FEDVIP, you have the opportunity to ensure your health benefits are aligned with your evolving needs.
If you’re a retiree, especially one planning to retire after January 1, 2025, this is also the time to start planning for the added costs of Medicare Part B. Don’t let these changes catch you off guard—be proactive now, so you’re prepared when the time comes.
Get Ready for USPS Open Season 2024
With the shift to PSHB and the new Medicare requirements, Open Season 2024 is an essential moment for USPS employees and retirees. Whether you’re preparing for retirement or just want to make sure your health benefits fit your needs, the decisions you make this year could have long-lasting impacts. Take the time to review your options, compare plans, and make the best choice for you and your family.
