Key Takeaways
- The Postal Service Health Benefits (PSHB) program will replace the Federal Employees Health Benefits (FEHB) program starting January 1, 2025, for USPS employees and retirees.
- Open Season for PSHB and FEDVIP plans is from November 11, 2024, to December 9, 2024—mark these dates to review or adjust your coverage.
What’s Changing for USPS Employees and Retirees?
Starting January 1, 2025, USPS employees and retirees will see a major shift in their healthcare coverage as the Postal Service Health Benefits (PSHB) program takes over. This switch is part of the
Postal Service Reform Act of 2022, designed to create a unique system for postal employees, separating them from the broader Federal Employees Health Benefits (FEHB) program. The good news? While the
PSHB program is new, some elements, like dental and vision coverage through FEDVIP (Federal Employees Dental and Vision
Insurance Program), will remain unaffected.
You might be wondering what exactly this means for you. Well, let’s break it down.
The Transition from FEHB to PSHB
The switch to the PSHB program applies to
all USPS employees and retirees who were previously under the FEHB system. The
PSHB program offers
healthcare options similar to the FEHB, but with a focus specifically on postal workers. This change was brought about to streamline and manage
healthcare costs for the USPS workforce more efficiently.
Here’s the kicker—this transition happens automatically. You won’t need to do anything unless you want to review or change your plan, which brings us to the
Open Season enrollment period happening from
November 11, 2024, to December 9, 2024. This window is your chance to take a closer look at your coverage and make adjustments if necessary.
Open Season Enrollment: Your Window to Make Changes
During Open Season, which runs from November 11 to December 9, 2024, you’ll have the opportunity to:
- Review your PSHB plan to make sure it fits your needs.
- Make changes to your dental and vision coverage under FEDVIP, which will continue as usual.
- Use the OPM plan comparison tool to help evaluate different plans and find the best fit for you and your family.
If you’re happy with your current healthcare setup, there’s nothing you need to do—your transition to a similar PSHB plan will be automatic. But if you’re considering a change or you want to ensure you’re getting the most out of your coverage, this is the time to take action.
What Happens to Dental and Vision Coverage?
One question you may have is: “Will my dental and vision benefits change?” Fortunately,
FEDVIP coverage continues unchanged in the new system. This means you’ll still have access to the same benefits for routine dental exams, cleanings, and prescription eyewear, with only minor
premium adjustments.
Speaking of premiums, FEDVIP dental premiums will increase by about
2.97%, and vision premiums will see a much smaller increase of
0.87%. These slight adjustments are still relatively minor compared to the rising costs of other
healthcare services, making your dental and vision coverage under FEDVIP pretty manageable for 2025.
PSHB Premiums for 2025: What to Expect
Curious about the costs of your new PSHB plan? Here’s a quick snapshot of
average biweekly premiums for 2025:
- Self Only: $397.35
- Self Plus One: $858.89
- Self and Family: $934.65
Now, keep in mind that the government covers about
72% of the total premium, leaving you to contribute the remaining
28%. Over the course of a year (26 pay periods), this means your personal contribution will look like:
- Self Only: $2,892.76 annually
- Self Plus One: $6,252.74 annually
- Self and Family: $6,804.20 annually
It’s essential to review these figures and decide if your current plan is still the best fit or if it’s time to make a switch during Open Season.
Medicare Part B: Do You Need It?
If you’re close to retirement or already retired, you might be wondering how
Medicare Part B comes into play with the PSHB plan. Here’s the deal:
- If you retire on or before January 1, 2025, you won’t be required to enroll in Medicare Part B to maintain your PSHB coverage. That’s a relief for many, as it keeps things simple.
- However, if you retire after January 1, 2025, you will need to enroll in Medicare Part B once you’re eligible (typically at age 65) to maintain your PSHB plan. Family members covered under your plan must also enroll when they become eligible.
There are some exceptions to this rule. For instance, if you’re living outside the U.S. or receiving care through the Department of Veterans Affairs (VA) or Indian Health Services (IHS), you might not be required to enroll in Medicare Part B. So, it’s important to understand your specific situation.
Cost Savings and Medicare Integration
For those of you who are enrolled in
Medicare Part B, the PSHB program offers some cost-saving perks. Many plans provide reimbursement for Part B premiums, lower deductibles, and reduced out-of-pocket expenses for healthcare services. This integration between Medicare and PSHB can help keep your overall healthcare costs down—an essential factor to consider as you plan for retirement.
Additionally, all PSHB plans for Medicare-eligible participants will include
Medicare Part D prescription drug coverage, eliminating the need for a separate Part D premium. This could simplify managing your healthcare costs and avoid any unexpected expenses for prescriptions.
Using the OPM Comparison Tool
The
OPM plan comparison tool is a handy resource to evaluate your PSHB and FEDVIP options during Open Season. The tool allows you to compare premiums, coverage levels, and other benefits to ensure you’re making the best choice for yourself and your family. Be sure to take advantage of this tool to make an informed decision about your healthcare coverage for 2025.
Take Note of Key Dates
Mark your calendars for these important dates:
- Open Season: November 11 – December 9, 2024
- PSHB Launch: January 1, 2025
These are critical windows of time to make sure your health coverage is set for the new year. Don’t wait until the last minute—review your options early so you can make any necessary changes without feeling rushed.
What You Should Watch For
As you prepare for Open Season and the upcoming PSHB transition, keep an eye on:
- Premium Adjustments: Check for any changes to your premiums under both PSHB and FEDVIP, especially for dental and vision coverage.
- Medicare Integration: Make sure you understand how Medicare Part B enrollment affects you, particularly if you’re nearing retirement.
- OPM Plan Comparison Tool: Take full advantage of this tool to ensure you’re getting the best deal on your healthcare coverage.
- Special Enrollment Periods: Pay attention to any Special Enrollment Periods, especially if you’ve missed enrolling in Medicare Part B earlier this year.
The transition to the PSHB program is significant, but with the right information and preparation, you can ensure that your healthcare coverage continues smoothly into 2025 and beyond.
Planning for 2025 and Beyond
Now that you know the basics of the PSHB transition and what to expect during Open Season, it’s time to get prepared. Even though the transition is automatic, it’s always a good idea to double-check your coverage options. Open Season is your time to make sure your healthcare needs are met at the best possible cost.
Taking advantage of resources like the OPM plan comparison tool, understanding how Medicare fits in, and reviewing your dental and vision options are all steps that will help ensure your health coverage is in great shape for the new year.
Contact Information:
Email:
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Phone:
8554162382