Medicare-related communication – Not affiliated with Medicare, USPS, PSHB, or any government entity or Provider
A Trusted Non-Governmental Resource
Picking Your 2025 Health Plan? Here’s How USPS Employees Can Make Sense of Open Season Changes
Key Takeaways:
  1. 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.
  2. 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
If you prefer thinking in annual terms, expect to pay around $2,892 for individual coverage or approximately $6,804 for family coverage across 26 pay periods. Of course, these numbers might differ slightly depending on the specific plan you choose, but they offer a good estimate of what to expect.

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%.
These changes are relatively modest compared to rising costs in other healthcare areas, so the hit to your wallet should be manageable.

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.

Staying Informed: Additional Resources

Throughout Open Season, you’ll have access to resources to help guide you through the process. The USPS will provide updates, and OPM will offer tools to make comparing plans easier. Don’t hesitate to reach out for help if you’re unsure about which plan is best for you. If you’re feeling overwhelmed, focus on one step at a time—start by reviewing your current coverage, think about any changes you’d like to make, and check out the comparison tools provided during Open Season.

Wrapping It All Up: How to Make the Best Choice for 2025

The transition to the PSHB program marks a major change for USPS employees and retirees, but it doesn’t have to be stressful. Open Season is your opportunity to assess your healthcare needs, weigh your options, and select the plan that works best for you and your family. By keeping an eye on key dates, utilizing comparison tools, and considering factors like Medicare, you can make this transition smoothly. Make sure to prepare now and stay ahead of the game when it comes to your 2025 health coverage.

USPS Health Benefits Plan

Changes to the USPS Health Benefits Plan impact millions of people. These changes will affect your healthcare choices in the future.

Get the help and answers you need. No Cost. No Obligation.

Are you a Licensed Agent? CLICK HERE to apply for a directory listing

Questions About USPS Health Benefits Plan or The PSHB Program?

All The Information You Need On PSHB Costs. Examine PSHB vs. FEHB And More

More Articles

Key Takeaways: Medicare Part D and the Postal Service Health Benefits (PSHB) program offer
Key Takeaways: The transition from the Federal Employees Health Benefits (FEHB) program to the Postal Service Health Benefits (PSHB) program is now in effect as of January 1, 2025. Understanding e...
Key Takeaways• The Postal Service Health Benefits (PSHB) program offers a range of coverage options tailored to meet different healthcare needs, from comprehensive to budget-friendly plans.• Understanding your
Key Takeaways Medicare Supplement Plan...
Key Takeaways The Postal Service Health Benefits (PSHB) program is designed exclusively for USPS employees and retirees, while Medicare serves as a federal health insurance program for those 65 an...
Key Takeaways: Understanding PSHB deductibles helps you avoid unexpected out-of-pocket expenses and plan your

Questions About USPS Health Benefits Plan, Medicare or the PSHB Program?

Enter Your Zip Code and Find the Best-Rated Independent Agents

Are you a Licensed Agent? CLICK HERE to apply for a directory listing

Leave Your Feedback

eBook

Contact Agent

Got a question or need assistance? We're here to help! Just fill out the form below, and our team will promptly address your inquiries.

Send a Message to Agent

Got a question or need assistance? We're here to help! Just fill out the form below, and our team will promptly address your inquiries.

This field is for validation purposes and should be left unchanged.

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

We welcome Medicare experts to apply for a FREE listing on
www.usps-health-benefits-plan.com. Applications are approved based on background,
reputation, licensure & professional record. Professionals are encouraged to contribute to the website community by sharing and creating content.

Readers are encouraged to connect with the Professionals listed.

*Terms and conditions apply