Key Takeaways:
- Big Changes for 2025: USPS employees and retirees will transition from FEHB to the new Postal Service Health Benefits (PSHB) program, starting January 1, 2025, with the Open Season running from November 11 to December 9, 2024.
- Medicare Impact: If you retire after January 1, 2025, enrolling in Medicare Part B will be required when eligible to maintain your PSHB coverage.
Get Ready for PSHB: Navigating Open Season 2024
The clock is ticking as USPS employees and retirees gear up for a significant shift in health coverage. Starting January 1, 2025, the Postal Service Health Benefits (PSHB) program will officially take over from the long-standing Federal Employees Health Benefits (FEHB) program. Open Season—running from November 11 through December 9, 2024—will be your chance to review, choose, or adjust your health plans to suit your needs. These changes, brought about by the Postal Service Reform Act of 2022, might feel a bit overwhelming at first, but don’t worry—I’ve got you covered. Let’s dive into what to expect, what you need to do, and how you can make the most of this Open Season to set yourself up for a smooth transition.What Is the PSHB and How Does It Differ from FEHB?
Let’s start with the basics. The PSHB program was designed specifically for USPS employees and retirees as part of the Postal Service Reform Act of 2022. This reform reshaped many aspects of the USPS, and one of the key goals was creating a separate health benefits program tailored to postal workers. On January 1, 2025, the PSHB will officially replace the FEHB, although the good news is that your dental and vision benefits through FEDVIP remain unchanged. You’ll still have access to routine cleanings, dental exams, prescription eyewear, and more.What to Expect During Open Season (November 11 – December 9, 2024)
During the Open Season, you will automatically be transitioned to a PSHB plan that closely matches your current FEHB coverage. However, this is also your window to evaluate your options, make changes, and ensure your health plan fits your 2025 needs. The Office of Personnel Management (OPM) will provide a handy plan comparison tool to help you compare PSHB plans, taking into account costs, coverage details, and any potential savings, especially if you’re eligible for Medicare. Be sure to use this tool during the Open Season to review your options thoroughly.PSHB Premiums: What Are the Costs?
Health insurance premiums for the PSHB program are structured similarly to the FEHB, with both USPS and you as the employee sharing the costs. On average, the government will cover about 72% of the total premium, and you will be responsible for the remaining 28%. Here’s a breakdown of the average biweekly premiums for PSHB in 2025:- Self Only: Total premium: $397.35 | Employee portion: $111.26
- Self Plus One: Total premium: $858.89 | Employee portion: $240.49
- Self and Family: Total premium: $934.65 | Employee portion: $261.70
What You Need to Know About Medicare Part B
One key aspect of the transition is how PSHB interacts with Medicare. If you’re already retired by January 1, 2025, and you’re not enrolled in Medicare Part B, you won’t be required to sign up for it to maintain PSHB coverage. However, if you retire after this date, you’ll need to enroll in Medicare Part B when you become eligible—usually at age 65—to keep your PSHB plan active. Family members covered under your PSHB plan will also need to enroll in Medicare Part B when they’re eligible. That said, there are a few exceptions to this rule for those living abroad, or those who receive care through the Department of Veterans Affairs (VA) or Indian Health Services (IHS).Take Advantage of Savings with Medicare Part B
One of the great things about enrolling in Medicare Part B is the potential for additional cost savings under many PSHB plans. These plans often offer benefits like reimbursement for your Medicare Part B premiums, waived deductibles, and lower out-of-pocket expenses. If you’re approaching Medicare eligibility, it’s worth exploring how these savings could reduce your overall healthcare costs.FEDVIP: Dental and Vision Coverage Remains Steady
You might be wondering—what happens to my dental and vision coverage under FEDVIP? The good news is that nothing changes here. You’ll still have access to the same FEDVIP plans you’re used to, covering essential services like dental exams, cleanings, and prescription eyewear. However, note that FEDVIP premiums are set to increase slightly for 2025:- Dental premiums will increase by an average of 2.97%.
- Vision premiums will increase by an average of 0.87%.
How to Prepare for Open Season 2024
Open Season might feel a little different this year, but with a bit of planning, you can navigate it smoothly. Here’s a simple checklist to help you stay on top of things:- Review Your Current Coverage: Take a look at your current FEHB and FEDVIP plans. Do they still meet your needs? If not, make a note of what changes you’d like to see.
- Use the Plan Comparison Tool: The OPM comparison tool will be available during Open Season. Use it to compare PSHB plans and see how they stack up in terms of premiums, coverage, and out-of-pocket costs.
- Think About Medicare: If you’re approaching Medicare eligibility, consider the savings that enrolling in Medicare Part B could bring. Don’t forget that family members under your plan will also need to enroll when eligible.
- Mark Your Calendar: Don’t let the Open Season dates sneak up on you! November 11 through December 9, 2024, is your window to make any necessary changes.