Key Takeaways

• Enrolling in Medicare Part B is critical for protecting your access to outpatient care, even if you already have Postal Service Health Benefits (PSHB) coverage.

• In 2025, Medicare Part B costs include monthly premiums, an annual deductible, and 20% coinsurance for most covered services.

Why Medicare Part B Matters for Postal Retirees and Workers

If you are a current postal worker or a retiree enrolled in the PSHB program, Medicare Part B can seem like an optional extra. However, in 2025, it plays a major role in making sure your coverage stays strong when you need it most. While PSHB plans remain comprehensive, many of their best cost-sharing features are tied to you having Medicare Part B.

Part B covers outpatient services such as:

• Doctor’s visits

• Preventive care

• Durable medical equipment

• Outpatient surgeries

• Physical therapy

• Mental health services

Without Part B, you could face larger out-of-pocket expenses even if you maintain your PSHB plan.

The 2025 Costs You Should Expect with Medicare Part B

Medicare Part B isn’t free. In 2025, here’s what you need to budget for:

• Standard Monthly Premium: $185

• Annual Deductible: $257

• Coinsurance: After meeting the deductible, Medicare typically covers 80% of approved charges. You are responsible for the remaining 20%.

Higher-income postal retirees might also pay an Income-Related Monthly Adjustment Amount (IRMAA) based on their modified adjusted gross income.

How PSHB and Medicare Part B Work Together

When you enroll in both PSHB and Medicare Part B, your two coverages coordinate. Medicare pays first, and your PSHB plan acts as secondary coverage. This structure often:

• Reduces or eliminates your copayments

• Waives deductibles under PSHB plans

• Covers services that Medicare does not fully pay for

• Extends your access to a broader range of providers

If you skip enrolling in Part B, you lose out on these financial protections under your PSHB plan.

You Can Face Late Enrollment Penalties

Timing matters with Medicare Part B. If you miss your Initial Enrollment Period (which starts three months before you turn 65 and ends three months after your birthday month), you could face:

• A permanent 10% penalty for every 12 months you delay enrollment

• Higher overall monthly costs

• Limited opportunities to enroll outside the General Enrollment Period (January 1 to March 31 each year)

Postal retirees and workers should aim to enroll on time to protect their future access to care.

How Long You’ll Pay Part B Premiums

As long as you remain enrolled in Medicare Part B, you must pay the monthly premium. This continues throughout retirement. However, the premium amount can change each year based on:

• Annual adjustments set by Medicare

• Your income level, reviewed annually

It is crucial to factor these ongoing expenses into your long-term retirement budget.

What Happens If You Don’t Enroll in Medicare Part B

If you decline Part B when you first become eligible, consequences go beyond the late enrollment penalty. Your PSHB coverage could be:

• Less generous, with higher copays and deductibles

• More restrictive, with fewer provider options

• Less predictable in cost sharing, especially for outpatient services

In short, skipping Part B could leave you financially vulnerable at a time when you might need healthcare the most.

Financial Planning for Part B Costs as a Postal Worker or Retiree

Good financial planning now can make a big difference later. Here are steps you should consider:

• Review Your Budget: Include Medicare Part B premiums, deductibles, and coinsurance in your retirement spending plans.

• Track Income Changes: Stay aware of whether your income might trigger IRMAA charges in future years.

• Understand Coordination: Recognize how your PSHB plan’s benefits depend on Part B enrollment.

• Evaluate Healthcare Needs: Consider your likelihood of needing regular outpatient services, therapies, or specialist visits.

By anticipating these realities, you can avoid unpleasant financial surprises.

Special Enrollment Periods for Part B

If you continue working past age 65 under USPS employment, you might qualify for a Special Enrollment Period (SEP) when you retire. This SEP allows you to:

• Enroll in Part B without paying a late enrollment penalty

• Enroll up to eight months after your employment or coverage ends

However, once you retire, delaying enrollment can quickly lead to penalties and higher costs.

Common Misunderstandings About Medicare Part B

Several misconceptions still cause confusion among postal retirees and workers:

• My PSHB Plan Will Cover Everything: Not without Part B. You risk higher costs if you rely on PSHB alone after Medicare eligibility.

• I Can Always Enroll Later Without Penalty: Only if you qualify for a Special Enrollment Period. Otherwise, penalties apply.

• Part B Is Only for “Sick” People: Preventive care and early treatments are Part B benefits that help you stay healthy.

Avoiding these misunderstandings can help you make smarter coverage decisions.

Out-of-Pocket Expenses You Should Anticipate

Even with PSHB and Medicare Part B, you are still responsible for certain costs in 2025:

• Premiums: For both PSHB and Medicare Part B.

• Deductibles: Medicare Part B deductible and any applicable PSHB deductible for services not covered by Medicare.

• Coinsurance: 20% under Medicare Part B for outpatient services unless secondary PSHB coverage picks it up.

• Prescription Drugs: Outpatient prescription drugs are not covered under Part B, requiring Part D or integrated PSHB drug coverage.

Recognizing these expenses in advance allows you to build a stronger retirement plan.

How Medicare Part B Supports Preventive Care

Medicare Part B covers many preventive services at no cost to you once you meet eligibility guidelines, including:

• Annual wellness visits

• Screenings for cancer, diabetes, and heart disease

• Vaccinations for flu, hepatitis B, and COVID-19

Preventive care through Part B helps you maintain your health, potentially reducing more expensive treatments later.

Planning Ahead for Premium Increases

Each year, Medicare reassesses Part B premiums. Increases usually reflect:

• Higher healthcare costs nationally

• Changes in Social Security benefits

• Congressional adjustments to Medicare funding

In 2025, the premium is $185, but you should expect it to gradually rise over the next several years. Building a financial cushion now is a wise strategy.

PSHB and Part B: Essential Partners in Retirement Health Security

For postal retirees, PSHB and Medicare Part B are better together. While you might think your PSHB plan is enough, Part B fills critical gaps and enhances the overall protection you receive.

Failing to enroll at the right time can cost you more than just money; it could mean reduced access to doctors and treatments when you need them most.

Protecting Your Healthcare Future

Making smart decisions about Medicare Part B is an investment in your health and financial security. If you’re unsure about when or how to enroll, or how Part B fits with your PSHB coverage, speak with a licensed insurance agent listed on this website. They can walk you through your choices and ensure you make the best decision for your situation.