Key Takeaways

• The PSHB program offers multiple plan types, and choosing the right one can significantly affect your healthcare spending in 2025.

• Understanding how costs like premiums, deductibles, copayments, and coinsurance work together helps you make the most affordable choice for your needs.

Let’s Talk PSHB: What’s New in 2025

If you’re a USPS employee or retiree, 2025 marks a major shift. The Postal Service Health Benefits (PSHB) program officially replaces the old FEHB system for you. While a lot may look familiar, the way costs stack up—and how you interact with your healthcare plan—can be very different.

So, if you’re wondering which PSHB coverage option saves you the most money, you’re not alone. Let’s break it all down in a way that makes sense without the insurance speak.

Understanding the Big Picture

When comparing PSHB plans, think beyond just the monthly premium. What you actually spend depends on multiple pieces:

• Monthly Premium: What you pay each month to keep the plan active.

• Deductible: The amount you pay out of pocket before your plan kicks in for most services.

• Copayments: Fixed costs for things like doctor visits or prescriptions.

• Coinsurance: A percentage of the bill you pay after the deductible is met.

• Out-of-Pocket Maximum: The most you’ll pay in a year for covered services.

The trick? Lower premiums often mean higher out-of-pocket costs—and vice versa.

Breaking Down the PSHB Plan Types

There are a few core types of PSHB coverage options. Each works differently, and what saves you money depends on your health needs and how often you use medical services.

High Deductible Health Plans (HDHPs)

HDHPs come with lower premiums but higher deductibles. They’re paired with Health Savings Accounts (HSAs), which help you set aside pre-tax money to pay for care.

Good if you:

• Are healthy and rarely see the doctor

• Want to build tax-free savings for medical expenses

Potential downsides:

• You could face big bills before hitting your deductible

• Not ideal if you have chronic conditions or expect surgery

Standard Plans

These plans strike a balance—moderate premiums, moderate deductibles, and predictable copays.

Good if you:

• Want reliable costs for visits, prescriptions, and routine care

• Use medical services occasionally but not constantly

Watch for:

• Higher monthly premiums than HDHPs

• Possibly fewer perks than some premium plans

Comprehensive or Premium Plans

These are the top-tier options. You’ll pay more monthly but get lower deductibles, lower copays, and extra services like telehealth, preventive care, or wellness programs.

Good if you:

• Have ongoing medical needs

• Prefer peace of mind over risk

• Use your plan frequently

Keep in mind:

• You’ll pay more up front (monthly premiums)

• Might not be worth it if you rarely use care

Are You Still Working or Retired?

Your status matters a lot. Active USPS employees and retirees face different cost structures in 2025.

Active Employees

• Premiums: Shared between you and USPS

• Plan options: Full range available, including low-cost plans

• Out-of-pocket costs: Can be lower depending on plan

Retirees

• Premiums: You pay the full share (minus government contribution)

• Medicare coordination: If you’re eligible and enrolled in Medicare Part B, your costs can drop in some plans

• Out-of-pocket caps: May be higher depending on the plan

The Medicare Factor

If you’re 65 or older and retired—or planning to retire soon—Medicare is part of your equation. Here’s how:

• Part A: Hospital insurance, usually premium-free

• Part B: Medical insurance, monthly premium applies

Most PSHB plans in 2025 require Medicare-eligible retirees to enroll in Part B. Doing so could reduce what you pay in deductibles and coinsurance under your PSHB plan. Some even waive cost-sharing completely for certain services if you’re also enrolled in Part B.

Not enrolling in Medicare Part B when you’re eligible could result in:

• Penalties that increase your Part B premium permanently

• Higher out-of-pocket costs through your PSHB plan

Comparing Costs the Smart Way

To figure out which PSHB plan saves you the most money, you’ll need to consider more than just the monthly price tag.

Total Annual Cost Estimate

To get a true picture, estimate your:

• Annual premium (monthly premium x 12)

• Out-of-pocket costs based on your typical medical usage

• Drug costs if you take regular prescriptions

Then, compare total costs across plans.

Look for the Sweet Spot

Think about what matters most:

• If you visit doctors often, lower copays and coinsurance could outweigh a higher premium.

• If you’re mostly healthy, a plan with a low premium—even if it comes with a high deductible—might still come out cheaper.

Watch Those Plan Features

Some PSHB plans offer extra perks that can add up to savings:

• Wellness incentives

• Telehealth visits at lower costs

• Prescription drug mail-order options

• Chronic care management services

Also, check:

• Network size: Are your preferred doctors and hospitals included?

• Referral rules: Do you need a primary doctor’s approval to see a specialist?

These little things can seriously affect convenience and cost over time.

Think About Your Family Size

Are you enrolling as Self Only, Self Plus One, or Self and Family? The difference in premiums can be big.

In some plans, it might actually cost less per person to enroll under Self and Family than separate plans for each individual. Don’t forget to run the numbers both ways.

What Changes After Open Season?

You can only change your PSHB plan during the annual Open Season (which runs from November to December), unless you experience a Qualifying Life Event.

Once you enroll, your choice generally stays locked in for the year. So you want to get this right the first time.

Questions to Ask Yourself Before Choosing

1. What do I usually spend on healthcare in a year?

2. Am I expecting any major procedures, new diagnoses, or family changes?

3. Do I take regular prescriptions?

4. Is my doctor in-network under the plan I’m considering?

5. Am I eligible for Medicare, and should I enroll in Part B to reduce costs?

Having these answers in hand will help you focus on what matters when comparing plans.

Long-Term Planning Pays Off

If you’re close to retirement or already there, consider how your health and income might change over the next few years. A plan that saves you money in 2025 might not be the best option in 2026 if your situation changes.

That’s why it’s a good idea to review your PSHB coverage annually—even if you’re happy with your current plan.

Make the Most of What’s Available

The government covers a generous portion of your PSHB premiums, and most plans offer ways to manage your healthcare costs more effectively. But those savings only help if you pick a plan that matches your needs.

Explore all your options before Open Season wraps up. And don’t hesitate to reach out if you feel overwhelmed by the details.

Ready to Save? Time to Pick What Works for You

Your PSHB plan choice can either protect your wallet—or drain it—over the course of 2025. Whether you’re still working or enjoying retirement, what you pick matters more than ever this year.

If you’re still unsure which plan suits you best, speak with a licensed agent listed on this website. They can help you figure out the smartest option based on your health, budget, and future needs.