Key Takeaways:
- The Postal Service Health Benefits (PSHB) program replaces FEHB for USPS employees and retirees starting January 1, 2025, following the Postal Service Reform Act of 2022.
- Open Season to review and select your health plans runs from November 11, 2024, through December 9, 2024—don’t miss your chance to make adjustments.
Big Changes Are Coming—Time to Review Your 2025 Health Plan!
Alright, it’s that time of year again: health insurance decisions! But this year, it’s more than just your typical Open Season. We’ve got some big changes happening for all USPS employees and retirees due to the Postal Service Health Benefits (PSHB) program rolling out on January 1, 2025. With the 2024 Open Season (November 11, 2024, through December 9, 2024) right around the corner, now is the perfect time to brush up on what’s new and what decisions you’ll need to make.
If you’re a USPS employee or retiree, you’re going to be automatically transitioned into a PSHB plan that closely matches your current
Federal Employees Health Benefits (FEHB) coverage. But don’t just sit back and let that happen. It’s your chance to compare options, make adjustments, and ensure your coverage suits your needs heading into 2025.
The Switch from FEHB to PSHB—What Does It Mean?
Starting January 1, 2025, the Postal Service Health Benefits program kicks in for all USPS employees and retirees. This transition is part of the Postal Service Reform Act of 2022, which aimed to revamp how healthcare benefits are provided to postal workers. One major thing to note is that this change only affects your medical coverage under FEHB. Your dental and vision coverage through the Federal Employees Dental and Vision Insurance Program (FEDVIP) stays exactly the same—phew!
The big change is that the PSHB will replace FEHB, meaning your health plan provider and options may look a little different. But don’t stress! Open Season is designed to help you review the new plans, compare costs, and select what’s right for you.
Open Season 2024: Your Window to Make Choices
Mark these dates on your calendar: November 11, 2024, through December 9, 2024. During this Open Season window, USPS employees and retirees will have the opportunity to review their health plans. It’s crucial that you take a look at the PSHB plan you’ll be automatically enrolled in and decide if you want to stick with it or make a change.
Here’s what you can do during Open Season:
- Review your PSHB plan options.
- Make changes to your medical, dental, or vision plans.
- Add or drop family members from your coverage.
- Evaluate how PSHB compares to your current FEHB plan.
The
Office of Personnel Management (OPM) will provide tools, such as a plan comparison tool, to help you evaluate your options. Use this tool to get a clear picture of what coverage suits you and your family best. Remember, any changes you make during this time will take effect on January 1, 2025.
How Much Will PSHB Cost You in 2025?
We all want to know about costs, right? With PSHB, the good news is that it’s designed to maintain affordability while continuing to offer comprehensive health coverage. The cost breakdown for 2025 looks like this:
- Self-Only Coverage: Total biweekly premium around $397.35, with 72% covered by the government and 28% by you.
- Self Plus One Coverage: Biweekly premium of about $858.89, with similar contribution splits.
- Self and Family Coverage: Premiums hovering around $934.65 biweekly.
These
medicare premium costs will be deducted from your pay across 26 pay periods, so it’s important to budget accordingly. For example, if you choose the Self-Only plan, your annual contribution would be around $2,892.76.
Even though these numbers provide a general idea of costs, keep in mind that specific premiums may vary depending on the plan you select during Open Season. So make sure to crunch those numbers based on your personal situation.
Retiring Soon? Know Your Medicare Part B Rules
One of the most important things to consider if you’re approaching retirement is Medicare. Whether you need to
enroll in Medicare Part B depends on your retirement date:
- If you retire on or before January 1, 2025, you will not be required to enroll in Medicare Part B to keep your PSHB coverage. You can choose whether or not to enroll, and your decision won’t impact your PSHB coverage.
- If you retire after January 1, 2025, you will be required to enroll in Medicare Part B once you’re eligible to maintain your PSHB coverage. This rule also applies to any family members covered under your plan.
Don’t forget to factor this in if you’re planning to retire soon. Additionally, certain exceptions apply for those living abroad, receiving care through the Department of Veterans Affairs, or Indian Health Services.
For those enrolled in Medicare, PSHB plans include
Medicare Part D coverage. This means your prescription drugs will be covered under your PSHB plan, eliminating the need for separate Part D premiums. However, take some time to review the specific formulary (that’s the list of covered drugs) for the plan you’re considering. It’s always a good idea to check how your current medications will be covered under the new plan.
What About Dental and Vision Coverage?
Good news here: your
dental and vision coverage through FEDVIP remains unchanged! You’ll still have access to services like routine dental cleanings, eye exams, and prescription eyewear. The only adjustment you’ll need to watch for is a small increase in premiums for 2025. Dental premiums are going up by an average of 2.97%, while vision premiums are seeing a more modest 0.87% increase.
These increases are pretty standard when compared to rising healthcare costs across the board, so they shouldn’t be a huge shock. And as always, during Open Season, you can compare FEDVIP plans to ensure you’re getting the coverage you need at the best price.
If you’re already enrolled in Medicare or planning to enroll soon, combining Medicare Part B with your PSHB coverage can lead to some serious savings. Many PSHB plans offer additional perks for those who have Medicare Part B, including:
- Reimbursement for Part B premiums.
- Waived deductibles.
- Lower out-of-pocket costs for medical services.
These savings can significantly reduce your overall
healthcare expenses, making retirement more affordable. If you’re eligible, it’s definitely worth considering the advantages of enrolling in Medicare Part B alongside your PSHB coverage.
Don’t Forget Other Federal Benefits
While PSHB is your main medical coverage, remember that you’re still eligible for other important federal benefits. Your access to programs like the Federal Employees’ Group Life Insurance (FEGLI), the Federal Long Term Care Insurance Program (FLTCIP), and of course, FEDVIP, remains unaffected by the transition to PSHB.
These benefits offer additional security and support, so keep them in mind when evaluating your overall coverage needs during Open Season.
The Importance of Being Proactive
With all these changes happening for 2025, it’s crucial to take a proactive approach during Open Season. Don’t just let automatic enrollment do its thing—take the time to review your options, evaluate how the new PSHB program compares to your current FEHB plan, and make any necessary adjustments.
Not only will this ensure you’re getting the best coverage possible, but it could also save you money in the long run. Use the comparison tools available, weigh your Medicare Part B options, and double-check your dental and vision coverage under FEDVIP.
Remember, PSHB officially launches on January 1, 2025, and you have until December 9, 2024, to lock in your choices for next year’s coverage. Stay informed, stay proactive, and make sure you’re set up with the best plan for your needs!
Contact Information:
Email:
[email protected]
Phone:
8554162382