Key Takeaways:
- The PSHB Open Season runs from November 11 to December 9, 2024. This is your chance to review, compare, and select your healthcare plan before the January 1, 2025 launch.
- If you retire on or after January 1, 2025, you’ll need to enroll in Medicare Part B to maintain PSHB coverage when eligible.
Open Season Is Here, Don’t Wait!
The clock is ticking! The 2024 Postal Service Health Benefits (PSHB) Open Season is happening from November 11 to December 9, 2024, and trust me, this is not something you want to leave to the last minute. Whether you’re a USPS employee or a retiree, it’s your opportunity to make important choices about your health benefits before the official PSHB program kicks off on January 1, 2025. This Open Season is a direct result of the Postal Service Reform Act of 2022, and it’s bringing significant changes to how your health coverage works.
If you’re not sure where to start or think you’ll just automatically roll into a similar plan, don’t wait until the last minute! It’s your chance to weigh your options, compare plans, and decide on the best health coverage for you and your family.
What is the Postal Service Health Benefits (PSHB) Program?
The PSHB is a new health benefits system exclusively for USPS employees and retirees. Starting January 1, 2025, USPS workers and retirees will move from the Federal Employees Health Benefits (FEHB) program to this newly created PSHB system. This change is a part of the Postal Service Reform Act of 2022, which aims to provide a more tailored health coverage option for those within the Postal Service.
For those of you familiar with FEHB, think of PSHB as a similar, but USPS-specific program designed to better suit our needs. But don’t worry – you’ll still have access to FEDVIP (Federal Employees Dental and Vision Insurance Program), so your dental and vision benefits won’t be impacted.
Important Dates You Need to Know
- PSHB Open Season: November 11, 2024 – December 9, 2024
- Launch of PSHB: January 1, 2025
These dates are key because if you want to make changes to your plan, Open Season is the time to do it. Once the deadline passes, you may be stuck with your current choice until the next Open Season, unless you have a qualifying life event.
Why This Open Season Is Different
This isn’t just another Open Season. It marks a significant shift in how USPS employees and retirees receive health benefits. The Postal Service Reform Act of 2022 established PSHB to offer you a health plan that fits your unique needs. Whether you’re actively working or retired, there are some key considerations to think about before making a decision.
For current employees, you’ll want to compare the PSHB plans available during Open Season and make sure you’re getting the best coverage at the best price. If you’re thinking about retirement in the near future, now is the time to consider how your choices will impact you once you stop working.
For retirees, the Medicare Part B requirement is a big one. If you retire after January 1, 2025, you’ll be required to enroll in Medicare Part B when you become eligible. Not enrolling can result in a loss of coverage under PSHB, so it’s essential to factor this into your decision-making process. Luckily, many PSHB plans integrate with Medicare to reduce overall costs for medical services.
Key Considerations for USPS Retirees
If you’re already retired, or planning to retire soon, this Open Season could be even more crucial for you. Here’s what you need to keep in mind:
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Medicare Part B Requirement: If you retire on or after January 1, 2025, you must enroll in Medicare Part B when you’re eligible to keep your PSHB coverage. Family members on your plan must also enroll when they qualify for Medicare.
But if you’re already retired before that date and not enrolled in Medicare Part B, don’t stress. You won’t be required to sign up for it to maintain your PSHB plan. The rule only applies to those retiring after the program’s launch.
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Prescription Drug Coverage: Great news! All PSHB plans for Medicare-eligible members will include Medicare Part D prescription drug coverage. This can save you from having to pay separate Part D premiums, and helps simplify managing your healthcare.
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Cost Savings with Medicare: Enrolling in Medicare Part B can unlock significant cost savings. Many PSHB plans offer perks like waived deductibles and lower out-of-pocket expenses when combined with Medicare Part B. For those looking to stretch their healthcare dollars, this can be a major win.
Costs to Keep in Mind
Healthcare costs can be a big consideration when choosing your PSHB plan. Here’s a general idea of what you might expect for 2025:
- Self Only Plan: Average total biweekly premium: $397.35
- Self Plus One: Average total biweekly premium: $858.89
- Self and Family: Average total biweekly premium: $934.65
The government covers 72% of your premium, which means the portion you’ll pay as an employee or retiree is 28%. Over the year, that adds up to:
- Self Only: $2,892.76 annually
- Self Plus One: $6,252.74 annually
- Self and Family: $6,804.20 annually
This is a general look at costs, and the specific amount you’ll pay depends on the plan you choose and the benefits it offers. Keep in mind, many plans offer added savings if you’re enrolled in Medicare Part B.
Tips for Making the Right Decision
Don’t Delay Reviewing Your Options
I know it’s tempting to put off Open Season until the last minute, but don’t. Take the time to compare plans and assess your needs now. The Office of Personnel Management (OPM) will have a comparison tool available during Open Season to help you evaluate different PSHB and FEDVIP options, so use it!
Consider Future Health Needs
What’s right for you now may not be what’s best for you in a few years, especially if you’re nearing retirement. If you’re thinking long-term, it’s smart to weigh how a particular plan integrates with Medicare and what it offers in terms of prescription drug coverage.
Review FEDVIP Plans Too
Open Season isn’t just about your main health plan – it’s also your chance to review or adjust your dental and vision coverage under FEDVIP. Dental premiums are increasing by 2.97% on average in 2025, while vision premiums are rising by a modest 0.87%. If you’ve been neglecting your dental or vision care, Open Season is a great time to make sure you have the coverage you need.
Wrapping It Up: Time to Take Action
Open Season is your chance to get the health coverage you deserve. With the PSHB program launching January 1, 2025, this is your window to make sure you’re on the right plan, especially if you’re nearing retirement or thinking about Medicare. Take the time now – compare options, evaluate your needs, and get everything in order before the December 9 deadline.
PSHB brings significant changes, but with some thoughtful planning during Open Season, you can navigate the transition smoothly and find the best fit for your healthcare needs.
