Key Takeaways:

1. Open Season is Critical: Postal employees and retirees must review and select their Postal Service Health Benefits (PSHB) plans during Open Season, which runs from November 11 to December 9, 2024. After this window closes, changes can only be made during specific life events.
2. Major Transition Underway: Starting on January 1, 2025, all postal employees and retirees will transition from the Federal Employees Health Benefits (FEHB) system to the new Postal Service Health Benefits (PSHB) program, introduced as part of the Postal Service Reform Act of 2022.

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The Health Plan Shuffle is Here!

Change is coming, and it’s big! With the transition to the Postal Service Health Benefits (PSHB) program just around the corner, every postal worker and retiree is going to have to make some key decisions. It’s like a healthcare “shuffle” — and trust me, you don’t want to sit this one out. The 2024 Open Season runs from November 11 to December 9, 2024. This is your chance to take a close look at your healthcare options before everything switches over to PSHB starting January 1, 2025. So, let’s talk about what you need to know, how this affects your healthcare choices, and how you can stay on top of these changes.

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Why the Shuffle? The Postal Service Reform Act of 2022

First, let’s address the big question: Why is this happening? The Postal Service Reform Act of 2022 set everything in motion. It’s aimed at making the Postal Service’s operations more sustainable in the long term, and part of this means shifting employees and retirees from the FEHB system to the new Postal Service Health Benefits (PSHB) program. This change is designed to give the Postal Service more control over its health benefits system while still offering comprehensive care to employees and retirees. If you’re thinking, “What does this mean for me?” — let’s break it down.

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PSHB vs. FEHB: What’s Different?

While the shift from FEHB to PSHB might sound like a lot of upheaval, the transition is meant to be pretty seamless. Most of the plan options under PSHB will be similar to those you’re used to under FEHB, but now these plans are exclusively designed for postal workers and retirees. Some highlights:

• Your dental and vision coverage through FEDVIP (Federal Employees Dental and Vision Insurance Program) stays the same. No changes here, so if you love your dental cleanings and prescription eyewear benefits, you’re good to go.
• New PSHB Plans: You’ll have new plan options designed specifically for USPS employees and retirees, offering tailored coverage that aligns with the needs of the postal community.

The big shuffle here is about adjusting to a system that’s customized just for you. It’s all about making sure that postal workers and retirees have healthcare options that fit their unique circumstances.

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Open Season 2024: Your Moment to Make Choices

Open Season is your window to review your current benefits and decide if your plan under PSHB is the right fit for you and your family. Between November 11 and December 9, 2024, you’ll want to log in and check out the new PSHB plans, see how they compare to your current FEHB coverage, and make any adjustments necessary. What happens if you don’t act during Open Season? No worries, you’ll still automatically be moved into a PSHB plan that’s similar to your current coverage. However, Open Season is your chance to review other options, adjust plans, or update your coverage levels if needed. It’s your one shot before the plans roll out in January 2025.

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Plan Costs: What You Can Expect in 2025

Now, let’s talk about what this all means for your wallet. Here’s what the average biweekly premiums are shaping up to be under PSHB starting in 2025:

• Self Only: Around $397.35
• Self Plus One: Around $858.89
• Self and Family: Around $934.65

The government contributes 72% of your premium costs, leaving you to cover the remaining 28%. Based on these averages, your biweekly contribution could look something like this:

• Self Only: $111.26
• Self Plus One: $240.49
• Self and Family: $261.70

That might seem like a lot of numbers, but don’t stress — all the exact details for your specific plan will be laid out during Open Season, giving you a chance to compare and find what works best for you.

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Medicare and PSHB: Do You Need Part B?

If you’re retiring after January 1, 2025, heads up! You’ll need to enroll in Medicare Part B once you become eligible, usually around age 65, to maintain your PSHB coverage. That goes for both you and any family members under your plan. For those of you retiring before January 1, 2025, you can relax. There’s no requirement to enroll in Medicare Part B to keep your PSHB plan. So, if you’re already retired or planning to retire soon, no extra action is needed on your part. A cool bonus? Many PSHB plans offer savings if you do enroll in Medicare Part B, like premium reimbursements, waived deductibles, and reduced out-of-pocket expenses. These benefits are designed to help you save money in the long run, so keep an eye on those options.

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What About Dental and Vision?

Good news here — dental and vision benefits under FEDVIP (Federal Employees Dental and Vision Insurance Program) are not affected by the move to PSHB. Your dental exams, cleanings, and prescription glasses are all safe. However, be aware that premiums for FEDVIP in 2025 will see slight changes:

• Dental premiums will rise by an average of 2.97%.
• Vision premiums will rise by an average of 0.87%.

These small increases are in line with the rising costs of healthcare, but at least your benefits remain solid.

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Tools to Help You Navigate

Navigating healthcare choices can feel like trying to read a map without a compass, but you don’t have to go it alone. The Office of Personnel Management (OPM) will have a plan comparison tool available during Open Season, allowing you to compare different PSHB plans and find the one that suits you best. This tool will help you:

• See how your current FEHB plan compares to the new PSHB plans.
• Check coverage details for medical, dental, and vision.
• Review prescription drug coverage (especially important for Medicare-eligible folks).

With this comparison tool, making the right choice for your health plan will be a lot easier.

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The Clock is Ticking: Don’t Miss Open Season

Here’s the bottom line: Open Season is your best chance to make sure you’re all set with the Postal Service Health Benefits (PSHB) program before the big switch in January 2025. If you don’t take action, you’ll still be automatically moved into a comparable plan, but why leave your health coverage up to chance? Take the time to review your options, check out the new plans, and make any necessary changes. The deadline is December 9, 2024. After that, changes to your coverage can only be made during special life events (like marriage, birth, or a job change), so don’t miss out on this opportunity.

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Your Health Plan, Your Future

The move to PSHB is significant, but with the right information and planning, it doesn’t have to be overwhelming. Keep an eye on the deadlines, compare your options, and make sure that your healthcare needs — and those of your family — are covered as we roll into 2025. The new plans are designed to offer good coverage, and by taking action now, you can make sure that this transition is as smooth as possible.