Key Takeaways

  • Missing critical deadlines during your USPS health benefits transition in 2025 can result in loss of coverage or increased out-of-pocket expenses.

  • Understanding enrollment windows, Medicare coordination rules, and re-enrollment restrictions is essential to keep your health benefits intact.

Why Deadlines Matter More Than Ever in 2025

If you’re a United States Postal Service (USPS) employee or retiree, you already know that 2025 is a major transition year. The switch from the Federal Employees Health Benefits (FEHB) program to the Postal Service Health Benefits (PSHB) Program is well underway. With that change comes a new set of rules, deadlines, and potential pitfalls.

Missing a key deadline now doesn’t just cause a delay—it could cost you your health coverage entirely or lock you out of important benefits. Let’s break down exactly what you need to know to avoid these costly mistakes.

Understanding the Key Enrollment Periods

There are multiple timelines in 2025 that impact your USPS health benefits. Missing even one can lead to unintended consequences.

1. Open Season (November to December)

Every year, Open Season is the period when you can enroll in, change, or cancel your health plan. For the PSHB transition, Open Season took on new importance in 2024, and it continues to matter in 2025.

  • If you’re a current employee, use LiteBlue to make changes.

  • If you’re a retiree, visit KeepingPosted.org to manage your enrollment.

Missing Open Season means your current plan continues, but if your plan is no longer available or changed significantly, you could be placed into a default option.

2. Medicare Part B Special Enrollment Period (April 1–September 30, 2024)

This SEP applied to certain annuitants and family members who were previously eligible but hadn’t enrolled in Medicare Part B. Although that period is now over, if you missed it, your PSHB coverage in 2025 may be limited unless you qualify for another SEP.

3. Qualifying Life Events (QLEs)

Outside of Open Season, you can only make changes to your health plan if you experience a QLE, such as:

  • Retirement

  • Marriage or divorce

  • Birth or adoption

  • Loss of other coverage

These changes must be made within 60 days of the event.

Medicare Coordination Requirements You Can’t Ignore

Starting in 2025, Medicare-eligible USPS annuitants and their eligible family members are required to enroll in Medicare Part B to keep their PSHB coverage. There are a few exceptions:

  • You retired on or before January 1, 2025

  • You are a current employee aged 64 or older as of January 1, 2025

  • You live abroad

  • You receive health benefits from the VA or Indian Health Services

If you’re required to enroll and don’t, you risk losing your PSHB coverage altogether. And keep in mind, late enrollment in Medicare Part B comes with a permanent monthly penalty.

Re-Enrollment Isn’t Always an Option

One of the biggest misconceptions is that you can simply re-enroll later if you miss a deadline. In many cases, that’s not true.

  • If you opt out of Medicare-integrated prescription drug coverage in 2025, you may not be able to get back in until the next Open Season—or at all.

  • If you fail to enroll in Medicare Part B when required, your PSHB plan can terminate your medical coverage, not just reduce your benefits.

Missed deadlines don’t always come with a second chance. You must act within the allowed windows.

How the New Drug Coverage Rules Impact Your Deadlines

In 2025, the PSHB program offers integrated Medicare Part D drug coverage for eligible annuitants and family members. Key features include:

  • A $35 cap on insulin

  • A $2,000 annual out-of-pocket maximum

  • Expanded pharmacy networks

If you are eligible for this coverage and choose to opt out, you won’t be able to re-enroll mid-year unless you qualify for a new SEP. Worse, if you don’t have another creditable prescription plan, you may face late penalties if you try to join later.

Costs Can Increase If You Miss a Deadline

Missing a health plan deadline might not only affect your coverage status—it can also increase your financial burden:

  • If your current plan drops you due to non-compliance, you could be left paying full medical costs out of pocket.

  • Medicare Part B penalties add 10% to your monthly premium for every 12-month period you were eligible but didn’t enroll.

  • Without timely action during Open Season or a QLE, you’re stuck with your plan—even if it no longer meets your needs.

What to Do If You’ve Missed a Deadline

If you believe you’ve missed a critical deadline, don’t panic—but don’t delay either.

  • Contact the PSHB Navigator Help Line at 1-833-712-7742

  • Reach out to the OPM directly

  • Document your situation and gather proof of any life events that may qualify you for a SEP

Acting quickly may allow you to restore or adjust your coverage.

Your Annual Checklist to Stay on Track

To avoid issues, make it a habit to review your benefits and take action during key periods.

Every Year:

  • Mark your calendar for Open Season (November–December)

  • Check your eligibility for Medicare if you’re nearing age 65

  • Review changes in your PSHB plan

  • Watch for notifications from OPM, USPS, or your health plan

When Life Changes Happen:

  • Report QLEs within 60 days

  • Update your records with OPM or on LiteBlue

  • Verify how changes impact dependent coverage and costs

Don’t Rely on Automatic Enrollment Alone

While USPS employees and annuitants were auto-enrolled into a comparable PSHB plan during the 2024 Open Season, that won’t protect you forever. You need to:

  • Confirm your current plan’s benefits and costs

  • Ensure your Medicare Part B enrollment is current if required

  • Opt into or out of Medicare-integrated drug coverage with full understanding of the consequences

Get Professional Support Before It’s Too Late

With all the changes happening in 2025, USPS employees and retirees are encouraged to seek expert guidance to stay compliant and covered. Even a simple misunderstanding can have long-term effects on your health coverage.

Stay Covered by Staying Prepared

Missing a deadline in 2025 could mean much more than inconvenience—it might lead to a gap in your coverage or higher long-term costs. With new PSHB rules and Medicare integration requirements, staying ahead of your responsibilities is more important than ever.

For expert guidance, speak with a licensed agent listed on this website who can help you understand your options and make informed choices.