Key Takeaways
- Postal Service Health Benefits (PSHB) Open Season runs from November 11 to December 9, 2024, giving you the chance to review your options.
- Changes from the Postal Service Reform Act of 2022 bring a new PSHB program starting January 1, 2025—so get ready for some adjustments.
Big Changes Are Coming—What You Need to Know About PSHB Open Season 2024
So, you’re probably wondering what’s the deal with the upcoming changes to your health plan, right? Well, if you’re a USPS employee or retiree, there’s a lot happening that you’ll want to get ahead of before Open Season starts on November 11, 2024. With the Postal Service Health Benefits (PSHB) program launching on January 1, 2025, there are key changes you should know about, including shifts in health plan options, new requirements for retirees, and updates to dental and vision plans. But don’t stress—I’ve got you covered!
A New Health Plan System: What’s Changing?
Thanks to the Postal Service Reform Act of 2022, USPS employees and retirees are transitioning from the Federal Employees Health Benefits (FEHB) system to the new PSHB program. But what does this really mean for you? In a nutshell, starting January 2025, the health plan choices, costs, and structure of your benefits will change.
Here’s the good news: dental and vision coverage under the Federal Employees Dental and Vision Insurance Program (FEDVIP) will stay the same. You’ll still have access to routine dental cleanings, exams, and prescription eyewear, just like before. But the main shift will be in your primary health insurance plan—so let’s break down the important parts of that change.
Why Is This Happening?
The shift to PSHB is part of broader efforts to reform the postal service’s operations and finances. Under the Postal Service Reform Act, it was decided that creating a health benefits program specifically for postal workers was necessary to ensure long-term sustainability. The goal? To align the program more closely with the needs of USPS employees and retirees, while reducing overall costs for both the government and postal workers.
Open Season—Your Window to Make Changes
Open Season is the period from November 11 to December 9, 2024, where you get the chance to review your plan, make changes, or switch your health coverage entirely. The best part? If you don’t want to change your current coverage, you’ll be automatically transitioned to a PSHB plan similar to your FEHB coverage. It’s a seamless shift, but you’ll still want to take a look and see if a different plan suits you better.
During Open Season, you also have the opportunity to review your FEDVIP coverage for dental and vision plans. It’s always a good idea to compare your options since premium rates for dental and vision are going up slightly in 2025. For dental, premiums will increase by an average of 2.97%, and for vision, the hike is 0.87%—a relatively mild rise compared to other healthcare costs.
Medicare Part B Requirements: What to Watch For
If you’re approaching retirement or already retired, there’s a significant change that could affect you. After January 1, 2025, most retirees will be required to enroll in Medicare Part B to keep their PSHB plan active once they become Medicare-eligible (usually at age 65). But there are a few exceptions, including those who live abroad or receive care through programs like Veterans Affairs (VA) or Indian Health Services (IHS). If you’re not enrolled in Part B yet but plan to retire after January 2025, this is definitely something to keep on your radar.
The good news for those already retired by January 1, 2025? You won’t be forced to enroll in Medicare Part B if you haven’t already, and neither will your covered family members. If you fall into this category, it’s worth taking note so that you don’t feel rushed into a decision.
How Will Medicare Part B Help You Save?
One major benefit of enrolling in Medicare Part B is that it can help lower your overall healthcare costs. Many of the new PSHB plans are designed to integrate with Medicare, providing additional savings like reimbursement of your Part B premiums, lower deductibles, and reduced out-of-pocket costs for medical services. It’s worth checking out how Medicare Part B could benefit your specific situation, especially if you’re aiming to reduce long-term medical expenses.
Additionally, the PSHB plans for Medicare-eligible retirees will include Medicare Part D prescription drug coverage, meaning you won’t need to pay for a separate Part D plan. This integration simplifies your healthcare coverage and saves you the hassle of juggling multiple plans.
PSHB Premiums: Breaking Down the Costs
Let’s talk numbers—because costs matter. While you’ll find that the PSHB premiums vary based on your plan and whether you’re enrolling as Self Only, Self Plus One, or Self and Family, the overall contributions remain similar to what you’ve been paying under FEHB. Here’s a snapshot of what to expect:
- Self Only: Average total biweekly premium of $397.35, with the USPS contributing about $286.09 and employees covering $111.26.
- Self Plus One: Average total biweekly premium of $858.89, where you’ll pay $240.49 out of pocket.
- Self and Family: Average total biweekly premium of $934.65, with the USPS kicking in $672.95.
Keep in mind, these numbers are averages for 2025, and actual premiums will vary based on the plan you choose. With 26 pay periods in the year, the annual employee costs can add up, so make sure to review all your options carefully during Open Season.
Helpful Tools to Compare Plans
Feeling overwhelmed by all the options? You’re not alone! Fortunately, the Office of Personnel Management (OPM) will have an online plan comparison tool ready to help you during Open Season. This tool allows you to compare costs, benefits, and coverage between different PSHB and FEDVIP plans, so you can make an informed decision that fits your health needs and budget. If you want to get ahead, bookmark the comparison tool and start your research early.
Dental and Vision Plans: Minimal Changes, but Check Your Options
Don’t forget about your FEDVIP coverage for dental and vision services! While the core benefits and coverage remain the same, the slight increase in premiums makes it a good time to reassess your plan. If you’re satisfied with your current coverage, great! But if you think you’ll need more or fewer services in 2025, now’s the time to consider your options. Premium increases for 2025 are moderate, so expect dental premiums to increase by 2.97% and vision premiums by 0.87%.
Staying Covered, No Matter What
One last thing to keep in mind—your shift to the new PSHB system won’t affect your access to other federal benefits. Whether it’s life insurance (FEGLI), long-term care (FLTCIP), or other programs, you’ll continue to have access to these benefits just like you do now. The transition is meant to be as smooth as possible, with minimal disruption to your broader benefits package.
Get Prepared for the Open Season Transition
The transition to the new PSHB program under the Postal Service Reform Act of 2022 might feel overwhelming, but by staying informed and taking advantage of Open Season, you can ensure you’re ready for the changes ahead. With the window for making changes from November 11 to December 9, 2024, make sure you give yourself enough time to review all your options—whether it’s your health plan or your dental and vision coverage. And remember, the new system officially kicks off on January 1, 2025, so get ready for the new year with confidence and peace of mind.
