Key Takeaways

• You may be paying more out of pocket for your PSHB plan in 2025 than you realize, even if your contribution feels similar to last year.

• Understanding the percentage-based cost structure and how government contributions work is key to accurately assessing your plan’s affordability.

The Numbers Behind Your Contribution—And Why They’re Easy to Miss

On paper, your Postal Service Health Benefits (PSHB) plan contribution might not seem drastically different from what you were paying before. The deduction from your paycheck or annuity could feel familiar. But a closer inspection of the 2025 cost structure tells a different story—especially when you factor in rising premiums, changing government contributions, and higher cost-sharing components like deductibles and copayments.

If you haven’t reexamined the math behind your PSHB contribution recently, now is the time.

What You’re Really Contributing in 2025

Each PSHB plan lists a total monthly premium, a portion of which you pay and the remainder of which is covered by the government. In 2025, the federal government continues to pay roughly 70% of the total premium amount. That means you cover about 30%—but that 30% is now based on a bigger number.

Premium Increases Are Subtle—but Add Up Fast

Even a moderate 10% increase in the total plan premium affects your contribution directly. For example:

• A 10% increase on a $900 premium becomes $990.

• Your 30% share would grow from $270 to nearly $297.

• That’s roughly $27 more per month—or $324 more per year.

It doesn’t feel like a leap in any given paycheck, but over time, it erodes your take-home pay more than you might expect.

Biweekly Deductions vs. Annual Reality

Many employees and retirees focus on the biweekly deduction because that’s what appears in their earnings statement. But to understand your full financial picture, look at the annual total:

• Multiply your biweekly contribution by 26 (the number of pay periods in a year).

• Compare this number to last year’s annual total.

If you haven’t done that calculation yet, the difference may surprise you. Even minor increases, repeated over 26 pay periods, become significant.

Why 2025 Feels the Same—But Costs You More

There are a few reasons your contribution may not feel different right away:

• Biweekly deduction creep: Increases are spread out over many pay periods.

• No big announcement: Unless you reviewed your Open Season materials carefully, you might not have noticed your plan cost rose.

• Stable base plan: You may have kept the same plan option, assuming the cost would stay roughly the same.

In 2025, PSHB plans underwent premium changes similar to previous years—but combined with other cost increases like higher deductibles and out-of-pocket maximums, the total cost burden for enrollees has grown.

Comparing Plan Tiers: Self Only, Self Plus One, Self and Family

Each coverage tier has its own cost structure, and understanding the breakdown can help you make more informed choices during Open Season.

• Self Only: Lower premiums, but not always the best value if you foresee needing more care.

• Self Plus One: This tier often appears cost-effective for couples, but the difference between this and the full Self and Family premium is sometimes narrower than expected.

• Self and Family: Highest overall premium, but potentially better cost-sharing on certain services depending on the plan.

Don’t assume the cheapest tier per person is always the most economical in total cost. Look at:

• Copayments for dependents

• Prescription drug cost structures

• Deductible and coinsurance policies

Government Contribution: Same Formula, Bigger Numbers

The government’s contribution toward your PSHB premium is based on a defined percentage (approximately 70%). While the percentage hasn’t changed in 2025, the total premium amount has, which means your share increases accordingly.

And there’s no cap on how high your 30% can go. If premiums rise by $150 per month, your share rises by $45. That’s the silent part of the shift—nothing feels different in your plan structure, but your paycheck or annuity is smaller.

Deductibles and Coinsurance: The Hidden Cost Layers

Your contribution is just one part of your overall healthcare cost. In 2025, many PSHB plans have increased deductibles and coinsurance rates, particularly in high-deductible options.

• Deductibles: Ranging from $350 to over $2,000 depending on the plan type and coverage level.

• Coinsurance: Often 20%–30% for in-network services, and up to 50% for out-of-network care.

These figures directly affect how much you owe after paying your premium. And unlike the premium, which is spread across the year, these costs can hit all at once if you require significant care early in the year.

medicare’s Role: Are You Coordinating Benefits Wisely?

If you’re a retiree eligible for Medicare, your PSHB plan works differently. Many plans offer reduced deductibles and lower copayments when you’re enrolled in both PSHB and Medicare Part B.

In 2025, some plans even integrate prescription drug coverage through Medicare Part D, which includes a $2,000 out-of-pocket cap on drug costs. But these benefits only apply if you actually enroll in Part B.

Skipping Medicare Part B to avoid paying an additional premium may seem cost-saving short-term—but it often results in higher overall costs, especially in coinsurance and drug expenses. If you’re not yet enrolled, it’s worth reviewing the numbers.

Common Misconceptions About PSHB Plan Costs

Let’s address a few beliefs that are often inaccurate in 2025:

• “I kept the same plan, so my cost must be the same.”

  • Plans often increase premiums yearly, even with no plan option changes.

• “The government still pays the same percentage, so it balances out.”

  • Yes, the percentage stays the same—but if the total premium grows, your share grows.

• “I only need to worry about premiums, not deductibles or coinsurance.”

  • This overlooks the real cost of care when you actually use your benefits.

• “I’m retired now, so my costs shouldn’t go up.”

  • Retirees may see changes in premium shares, especially if not eligible for full government contributions or not coordinating benefits with Medicare.

Steps You Can Take to Regain Control

Here’s how to re-engage with your PSHB plan and reassess whether it still works for you in 2025:

• Check your current year’s biweekly contribution. Then multiply by 26 to see your annual total.

• Compare that with last year’s annual cost. Even small differences matter.

• Review your plan’s deductible and coinsurance amounts. Especially if you anticipate surgery, chronic care, or specialist visits.

• Consider Medicare enrollment if eligible. Review how your PSHB plan changes when Medicare Part B is added.

• Use plan comparison tools during Open Season. Even if you’re not changing plans, it helps you understand the value of your current one.

When Every Percent Matters—The Long-Term Effect

Health insurance costs rarely increase all at once. It’s the gradual accumulation of higher premiums, cost-sharing, and missed coordination opportunities that quietly increases your financial exposure year after year.

If your plan contribution feels the same but your paycheck feels lighter—or your bills higher—it’s time to recalculate.

A few dollars per paycheck in 2025 may not seem urgent. But across 12 months? You could be paying hundreds more annually than you realize, simply for staying in the same plan.

And that’s the catch: PSHB costs don’t announce themselves. You have to look.

Reassess Your Health Plan Before It’s Too Late

You don’t need to overhaul your coverage just for the sake of change. But you do need to reassess whether your current PSHB plan is truly the best fit—especially in a year when contributions have shifted more than you may notice.

Speak with a licensed agent listed on this website to help you understand what you’re paying now, what you could be paying, and how to optimize your plan for 2025 and beyond.