Key Takeaways

• In 2025, USPS employees and retirees face a one-time opportunity to transition into the new Postal Service Health Benefits (PSHB) program and coordinate effectively with Medicare.

• Delaying or misunderstanding eligibility requirements can result in loss of certain benefits, especially prescription drug coverage integrated with Medicare Part D.

Understanding the Urgency of 2025

For current and former United States Postal Service (USPS) workers, 2025 marks a critical year for healthcare coverage. This is not a routine open season or minor plan update. It’s a major shift in how your health benefits are structured and delivered. The Postal Service Health Benefits (PSHB) Program is replacing FEHB coverage for all USPS employees, annuitants, and eligible family members.

This transition means you must actively understand what’s changing and how to protect your benefits—especially if you’re Medicare-eligible. The decisions you make this year could affect your healthcare access and out-of-pocket costs for years to come.

What Is Changing in 2025?

The PSHB Program officially takes effect January 1, 2025. Here’s what’s new:

• FEHB plans are no longer available to USPS employees and retirees. You must switch to a PSHB plan.

• Medicare integration becomes mandatory for some annuitants and their eligible family members.

• Prescription drug coverage is provided through a Medicare Part D Employer Group Waiver Plan (EGWP).

If you are eligible for Medicare Part B, enrolling in it becomes essential to keep your PSHB coverage active.

Who Needs to Act Now?

You need to pay close attention to your eligibility and enrollment deadlines if you fall into any of these categories:

• You are a USPS retiree already enrolled in Medicare Part A.

• You are turning 65 in 2025 or later.

• You are a USPS employee who will retire soon and qualify for Medicare.

• You are a family member covered under a retiree’s plan who is also Medicare-eligible.

Each of these groups has specific obligations and timelines they must meet to avoid losing benefits or facing higher costs.

Medicare Part B Enrollment Requirements

In 2025, the rules around Medicare Part B are not flexible if you want to keep your PSHB plan. Here’s what you need to know:

• Mandatory Enrollment: If you are Medicare-eligible and retired after January 1, 2025, you must enroll in Medicare Part B to stay in a PSHB plan.

• Special Enrollment Period: A special enrollment period (SEP) was offered in 2024 from April 1 to September 30 for annuitants and eligible family members who had delayed enrolling in Part B. If you missed it, you may face penalties or gaps in coverage.

• Exemptions Apply: You may be exempt if you retired on or before January 1, 2025, are age 64 or older as of that date, live abroad, or are receiving health benefits through the VA or Indian Health Services.

Understanding these rules can prevent significant disruptions in your coverage.

Prescription Drug Coverage Integration

The PSHB program includes automatic enrollment into a Medicare Part D EGWP for Medicare-eligible annuitants and covered family members. This integration provides several advantages:

• A $2,000 annual cap on out-of-pocket drug costs.

• A monthly payment option for expensive prescriptions.

• A $35 cap on insulin.

But opting out of the EGWP means losing prescription drug coverage under your PSHB plan. This is not something to take lightly, as re-enrollment options are very limited.

What You Need to Do During Open Season

Open Season for PSHB runs annually from November to December. For 2025, this period is especially crucial:

• Enroll in a PSHB Plan: You’ll be automatically enrolled in a plan similar to your FEHB coverage, but you should still review your options.

• Confirm Medicare Enrollment: Make sure your Medicare Part B enrollment is complete and on record.

• Review Drug Coverage: Understand the prescription drug benefits associated with your plan and the implications of EGWP enrollment.

• Update Contact Info: Ensure OPM and the PSHB system have your current address, email, and phone number.

Even if auto-enrolled, you should actively review and compare plans. Your needs may have changed, and this is your best chance to ensure proper coverage.

Common Mistakes to Avoid

Don’t let confusion or assumptions cost you your benefits. Here are mistakes to watch for:

• Assuming you’re covered without verifying your Medicare status.

• Ignoring communication from OPM or your retirement system.

• Missing the Open Season window without reviewing your plan.

• Opting out of Medicare Part B or the EGWP without fully understanding the consequences.

These actions can lead to reduced benefits, increased costs, or loss of coverage.

Timeline You Need to Follow

Here’s a quick breakdown of key dates and periods:

• January 1, 2025: PSHB officially replaces FEHB for USPS workers and annuitants.

• November to December 2025: Annual PSHB Open Season period for future plan changes.

• Throughout 2025: Ongoing requirement to maintain Medicare Part B enrollment for those mandated.

Failing to act during these windows could lock you out of necessary care or cost-saving features.

Don’t Wait for a Problem to Arise

The transition to PSHB is designed to improve the integration of your benefits, especially if you’re eligible for Medicare. But like all transitions, it requires your attention.

This is not the time to wait and see what happens. You may not get another opportunity to fix an enrollment issue until the next Open Season—or worse, not at all if you lose eligibility.

How Coordination With Medicare Can Save You Money

If you are properly enrolled in Medicare Part A and B, your PSHB plan works as secondary coverage. This dual enrollment structure can:

• Lower your deductible and coinsurance costs.

• Reduce or eliminate certain copayments.

• Give you access to enhanced drug pricing and benefits under the EGWP.

The overall effect is a reduction in your healthcare spending—if you are fully and correctly enrolled.

What if You’re Not Yet Eligible for Medicare?

If you’re under 65 or not yet eligible for Medicare, don’t ignore these updates. Eventually, you’ll age into the system, and your actions today still matter.

• Make sure your current PSHB plan is the right fit.

• Prepare for the transition by learning about Medicare basics.

• Set reminders for your Initial Enrollment Period (IEP) when the time comes.

This proactive approach will set you up for a smoother, more affordable healthcare experience in the future.

Resources You Should Know About

To help you manage the 2025 transition, several resources are available:

• OPM PSHB Page: Offers plan brochures, FAQs, and comparison tools.

• KeepingPosted.org: Designed for annuitants to access enrollment and benefit tools.

• LiteBlue: For current USPS employees to manage benefits and make elections.

• PSHB Navigator Help Line: Offers guidance on plan selection, Medicare enrollment, and more.

Use these tools early rather than waiting until deadlines approach.

This Year Is Different—Don’t Treat It Like Every Other Open Season

You’ve likely seen many open seasons come and go during your time with the Postal Service. But 2025 is different. The PSHB program changes how your health coverage works, who you must coordinate with, and what’s required to maintain benefits.

The one-time opportunity to align with Medicare and avoid gaps or penalties won’t repeat itself. Make sure you take it seriously.

Lock in the Right Coverage for 2025 and Beyond

You’ve worked hard for your USPS benefits, and 2025 is your moment to make sure those benefits keep working for you. Whether you’re already retired or still on the job, reviewing your plan, understanding Medicare requirements, and making timely choices is essential.

For questions or support, speak with a licensed agent listed on this website to get personalized advice and protect your healthcare future.