Key Takeaways:
- Biggest Healthcare Change: USPS employees and retirees will move from the Federal Employees Health Benefits (FEHB) program to the new Postal Service Health Benefits (PSHB) program, effective January 1, 2025.
- Mark Your Calendars: Open Season for Postal Service Health Benefits (PSHB) runs from November 11, 2024, to December 9, 2024, allowing for plan selection or adjustments.
Navigating the Shift: From FEHB to PSHB
The landscape of healthcare is evolving for USPS employees and retirees, with the introduction of the Postal Service Health Benefits (PSHB) program. This change stems from the Postal Service Reform Act of 2022, which outlines the switch from the Federal Employees Health Benefits (FEHB) program to PSHB starting January 1, 2025. If you’re feeling a little overwhelmed by the changes, don’t worry—I’ve got you covered with everything you need to know, from timelines to what this means for your current benefits.
Why the Shift? Postal Service Reform Act of 2022
The Postal Service Reform Act of 2022 is the backbone of this transition. It was created to ensure that USPS employees and retirees have access to healthcare benefits tailored specifically for them. One of the driving factors behind this move is to provide a more sustainable and cost-effective healthcare solution for postal workers and retirees while ensuring long-term financial stability for the Postal Service.
In practical terms, this means a shift from FEHB to PSHB starting on January 1, 2025. But while the change may seem daunting, the good news is that it aims to preserve the same level of coverage USPS employees and retirees have become accustomed to, with the potential for even more targeted benefits.
Important Dates You Should Know
Open Season: November 11 – December 9, 2024
This is your window to make important decisions about your healthcare plan for 2025. During Open Season, USPS employees and retirees will be automatically transferred to a PSHB plan that closely mirrors their existing FEHB coverage. However, this is also the perfect time to review your options and make adjustments if necessary.
Whether you’re planning to stick with a similar plan or explore different options, you’ll have the flexibility to evaluate what’s best for you. November 11, 2024, to December 9, 2024 is the time to act!
Launch Date: January 1, 2025
The official launch of the PSHB program is set for January 1, 2025. By this date, all USPS employees and retirees will be enrolled in their new PSHB plan, and the FEHB system will no longer apply to you. If you’re currently enrolled in FEHB, this transition will happen automatically, so you won’t need to do anything to keep your coverage—unless, of course, you decide to make changes during Open Season.
What Does This Mean for Your Healthcare?
Coverage Similar to FEHB
A big concern you might have is how PSHB will compare to FEHB. The good news is that PSHB plans are designed to offer coverage that’s similar to FEHB. Whether you need routine checkups, specialist care, or prescription drugs, you can expect a comparable range of services. Plus, for those already retired or thinking about retirement, there’s continued integration with Medicare to help manage out-of-pocket expenses.
Dental and Vision Coverage Through FEDVIP
One aspect that’s not changing is dental and vision coverage. If you’re part of the Federal Employees Dental and Vision Insurance Program (FEDVIP), you’ll still have access to your dental cleanings, eye exams, and even prescription eyewear. While PSHB handles the medical side, FEDVIP will continue to manage your dental and vision needs, with dental premiums increasing by 2.97% and vision premiums by 0.87% for 2025.
Medicare and PSHB: How They Work Together
Enrolling in Medicare Part B
For retirees, especially those approaching Medicare eligibility, it’s crucial to understand how Medicare Part B ties into the PSHB program. If you retire after January 1, 2025, and become eligible for Medicare, you’ll need to enroll in Medicare Part B to keep your PSHB plan. This integration can actually be a win-win, as many PSHB plans offer perks like lower deductibles, reduced out-of-pocket expenses, and even Part B premium reimbursements.
However, if you retire on or before January 1, 2025, you’re in luck—you won’t be required to enroll in Medicare Part B to keep your PSHB coverage. So, depending on your retirement timeline, your experience with Medicare may vary.
Prescription Drug Coverage (Part D)
If you’re wondering about prescription drug coverage, don’t sweat it. PSHB plans for Medicare-eligible participants will include Medicare Part D prescription drug coverage. That means you won’t have to worry about paying separate premiums for Part D coverage. Just be sure to review your plan’s formulary to confirm your medications are covered.
Costs and Contributions: What Will You Pay?
Healthcare costs are always a concern, and with PSHB, there’s a clear breakdown of how premiums will be handled in 2025. On average, here’s what the biweekly premiums will look like for USPS employees:
- Self Only: $397.35
- Self Plus One: $858.89
- Self and Family: $934.65
The government will continue to cover 72% of the total premium, while you’ll be responsible for the remaining 28%. Depending on your plan, that translates to annual costs of about $2,892.76 for Self Only coverage, $6,252.74 for Self Plus One, and $6,804.20 for Self and Family.
Special Enrollment Periods and Exceptions
Late Enrollment in Medicare Part B
If you missed the boat on Medicare Part B enrollment, don’t panic. A Special Enrollment Period (SEP) was available from April to September 2024, allowing retirees and their families to enroll in Medicare Part B without facing late enrollment penalties. USPS also covered the penalties for those who enrolled during this period.
Exceptions to Medicare Part B
There are a few exceptions when it comes to Medicare Part B enrollment. If you’re living abroad, receiving care through the Department of Veterans Affairs (VA), or using services from Indian Health Services (IHS), you may not need to enroll in Part B. Be sure to check if these exceptions apply to your situation.
Plan Comparison Tools
Evaluating your healthcare options can feel like navigating a maze, but there’s help available. The Office of Personnel Management (OPM) provides a plan comparison tool that allows you to compare different PSHB and FEDVIP plans side-by-side. This tool will be available during Open Season, making it easier to identify the best plan for your specific needs and budget.
Ensuring a Smooth Transition
The switch from FEHB to PSHB may seem like a big change, but it’s designed with USPS employees and retirees in mind. The Postal Service Reform Act of 2022 ensures that you’ll maintain comprehensive healthcare coverage, and the PSHB program is structured to offer benefits that are comparable to, if not better than, FEHB. Whether you’re retiring soon or planning for the long term, it’s essential to review your options during Open Season (November 11 – December 9, 2024) and ensure you’re enrolled in the plan that suits your needs best.
What You Should Do Next
As you prepare for the transition, it’s important to stay informed. Review your current healthcare needs, consider how Medicare might play a role in your coverage, and use the comparison tools to evaluate the best PSHB plan for you. Open Season is your chance to make changes, and January 1, 2025, is the date when your new plan kicks in.
Time for Action: PSHB Open Season
The shift from FEHB to PSHB marks one of the biggest changes in healthcare for postal workers in recent history. By staying on top of key dates and understanding your options, you’ll be ready to make the most of the new PSHB program when it launches on January 1, 2025. Take advantage of Open Season from November 11 to December 9, 2024, and ensure you’re all set for this new chapter in USPS healthcare.
