Key Takeaways:
- The Postal Service Health Benefits (PSHB) program will officially begin on January 1, 2025, replacing the current FEHB plans for USPS employees and retirees.
- Postal Service Health Benefits (PSHB) Open Season runs from November 11 to December 9, 2024. Make sure to review your new options and understand the changes before making your selections.
The Countdown Begins: Your Health Plans Are Changing!
The year is moving fast, and before we know it, Postal Service employees and retirees will be making an important shift in their health coverage. The Postal Service Health Benefits (PSHB) program is launching on January 1, 2025. This is a major transition, brought to life by the Postal Service Reform Act of 2022. If you’re part of the USPS workforce or a retiree, you’ll no longer be covered under the Federal Employees Health Benefits (FEHB) program. Instead, you’ll be automatically transitioned into a PSHB plan that mirrors your current benefits during the Open Season from November 11 to December 9, 2024.
Here’s what you need to know to stay on top of these changes.
A New Era in Health Coverage: What is PSHB?
PSHB, or Postal Service Health Benefits, is the new healthcare program created specifically for USPS employees and retirees. This shift from the FEHB is meant to streamline benefits and costs, especially for retirees. While this may sound like a big change, the transition is designed to be as smooth as possible. In fact, if you like your current FEHB plan, you’ll likely be moved into a comparable PSHB plan. You won’t be left in the dark, but you will need to keep an eye on a few key details.
Open Season 2024: Time to Make Your Choices
Mark your calendars! Open Season for PSHB runs from November 11 to December 9, 2024. This is the time to review your health plan options and make any necessary changes. If you don’t make changes, you’ll automatically be enrolled in a PSHB plan similar to your current coverage.
During Open Season, you’ll also have the opportunity to review your dental and vision coverage through the Federal Employees Dental and Vision Insurance Program (FEDVIP). The good news? FEDVIP coverage isn’t changing—so if you’re happy with your dental and vision plan, you won’t need to worry. However, there are small premium increases for 2025 to be aware of:
- Dental premiums are increasing by about 2.97%.
- Vision premiums are going up by around 0.87%.
These slight adjustments are pretty modest, especially when you consider how healthcare costs are rising across the board. So, don’t be caught off guard. Take this time to review your coverage, understand the costs, and make sure everything still works for you and your family.
Breaking Down the Premiums: What Will PSHB Cost You?
When it comes to healthcare costs, knowing what you’re paying for is crucial. Under PSHB, your total premiums will include contributions from both the government and you. Here’s a snapshot of what you can expect to pay biweekly on average:
- Self Only: $397.35
- Self Plus One: $858.89
- Self and Family: $934.65
The government will continue to contribute 72% of your premium, which helps keep your out-of-pocket expenses in check. Your contribution (about 28% of the total premium) breaks down like this:
- Self Only: $111.26
- Self Plus One: $240.49
- Self and Family: $261.70
Over the course of a year (with 26 pay periods), that means you’ll be paying:
- Self Only: $2,892.76 annually
- Self Plus One: $6,252.74 annually
- Self and Family: $6,804.20 annually
It’s a good idea to factor these numbers into your overall budget, especially as you plan for the year ahead.
The Medicare Factor: Do You Need to Enroll?
For retirees, Medicare enrollment is a key aspect of maintaining PSHB coverage. However, whether or not you need to enroll depends on your retirement date:
- If you retire on or before January 1, 2025, you’re not required to enroll in Medicare Part B to keep your PSHB coverage.
- If you retire after January 1, 2025, you will be required to enroll in Medicare Part B once you become eligible, typically at age 65. Your family members covered under your plan must also enroll in Part B when eligible.
There are some exceptions to these rules, like if you’re receiving care through the Department of Veterans Affairs (VA), Indian Health Services (IHS), or if you’re living abroad. But for most retirees, Medicare Part B will be part of the equation going forward.
Special Enrollment Periods: What You Need to Know
You may have already heard about the Special Enrollment Period (SEP) for Medicare Part B that ran from April to September 2024. If you or a family member wasn’t already enrolled in Medicare Part B, this SEP allowed you to sign up without the usual late enrollment penalties. If you took advantage of this opportunity, great! If not, be sure to check your eligibility and requirements under the PSHB program as you approach retirement.
How PSHB and Medicare Can Save You Money
One of the benefits of enrolling in Medicare Part B is that many PSHB plans offer cost-saving features for Medicare enrollees. These include:
- Reimbursement for Part B premiums.
- Waived deductibles.
- Lower out-of-pocket costs for medical services.
With these savings, Medicare can work hand-in-hand with your PSHB plan to reduce your overall healthcare costs in retirement. It’s definitely worth looking into the specific plans available to you during Open Season to see how they can help stretch your healthcare dollars.
Your Other Benefits: What’s Staying the Same?
While PSHB is taking over health coverage, your other benefits remain unchanged. You’ll still have access to important programs like:
- FEDVIP for dental and vision coverage.
- Federal Employees’ Group Life Insurance (FEGLI).
- Federal Long Term Care Insurance Program (FLTCIP).
This means you won’t need to worry about losing any of these valuable benefits in the transition to PSHB. However, it’s a good idea to take advantage of the OPM plan comparison tool during Open Season to ensure your coverage still meets your needs. A little review now could save you some hassle (and money) later on.
Prescription Drug Coverage: What’s New?
Another important change for Medicare-eligible participants is that all PSHB plans will now include Medicare Part D prescription drug coverage. This is great news because it means you won’t need to pay for separate Part D premiums. However, as always, make sure to review the drug formularies of your chosen PSHB plan. Different plans may cover different medications, so it’s important to check that your prescriptions will be covered at a cost that works for you.
Wrapping It Up: Stay Informed, Stay Covered
With the PSHB program launching soon, there’s no time like the present to make sure you’re prepared. From premium breakdowns to Medicare enrollment rules, there’s a lot to consider. But the good news is that you have plenty of resources at your disposal. Open Season from November 11 to December 9, 2024, is your chance to review your options and ensure you’re covered for the year ahead. Take the time to compare plans, factor in any new costs, and confirm that your benefits lineup with your healthcare needs. It’s a new era for USPS employees and retirees, but with a little preparation, you’ll be ready to navigate the changes with confidence.
