Key Takeaways

• Medicare Part B enrollment is now essential if you’re looking to unlock the full benefits of the Postal Service Health Benefits (PSHB) program starting in 2025.
• With Open Season running from November 11, 2024, to December 9, 2024, it’s crucial to align your Medicare Part B decisions to ensure you don’t miss out on key PSHB benefits.

Medicare Part B: The Essential Piece of the PSHB Puzzle

By now, you’ve probably heard a lot about the big changes coming to our healthcare coverage as postal workers. If you haven’t, let me fill you in—starting January 1, 2025, all of us currently enrolled in the Federal Employees Health Benefits (FEHB) program will be automatically transitioned to the new Postal Service Health Benefits (PSHB) program unless we decide to make changes during this year’s Open Season, running from November 11 to December 9, 2024. This overhaul might seem overwhelming, but there’s one key element that could make or break your healthcare experience under PSHB: Medicare Part B.

So why is Medicare Part B so important for unlocking your PSHB benefits? Let’s break it down.

PSHB and Medicare Part B: A Perfect Match

The Postal Service Health Benefits (PSHB) program has been designed to work seamlessly with Medicare, especially Part B, which covers doctor visits, outpatient services, preventive care, and some medications. In fact, enrolling in Medicare Part B becomes almost a must once you hit 65. The new PSHB plans are structured with the expectation that retirees will have Medicare as their primary coverage and PSHB as a secondary insurer, which fills in the gaps that Medicare doesn’t cover.

Without Medicare Part B, you may end up with much higher out-of-pocket expenses because PSHB alone will likely not provide the same level of comprehensive coverage without that Medicare partnership. In other words, Medicare Part B is the key that unlocks the full benefits of the PSHB program.

Avoiding Penalties and Extra Costs

Not enrolled in Medicare Part B? You could be setting yourself up for some hefty penalties and extra costs down the road. Here’s the deal: if you don’t sign up for Part B when you’re first eligible (at age 65), you could face a late enrollment penalty. For every 12 months you delay, your premiums could go up by 10%. That’s a long-term financial hit that could seriously impact your retirement budget.

Moreover, if you don’t have Medicare Part B and rely solely on PSHB, you could be responsible for higher deductibles, copays, and coinsurance. PSHB isn’t designed to replace Medicare—it’s designed to complement it. Not having both pieces of the puzzle could mean paying significantly more out-of-pocket for things like doctor visits and outpatient care.

Timing Matters: Key Dates You Can’t Miss

If you’re nearing retirement or already there, the next few months are critical. The PSHB Open Season kicks off on November 11, 2024, and runs through December 9, 2024. During this window, you’ll need to review your healthcare options and decide if any changes are necessary.

But the real deadline to keep an eye on is your 65th birthday. That’s when you become eligible for Medicare Part B, and it’s the date that matters most when it comes to coordinating your benefits. If you’re already past 65 and haven’t enrolled in Part B yet, don’t panic—you can sign up during the General Enrollment Period (January 1 to March 31 each year), but keep in mind the late enrollment penalties we just talked about.

What Happens If You Skip Medicare Part B?

Skipping Medicare Part B might seem like an easy way to save money now, but it can cost you a lot more in the long run. Without Part B, you’ll likely face significant gaps in your healthcare coverage. Doctor visits, outpatient care, lab tests, and some preventive services that Part B would usually cover might become far more expensive under PSHB.

You might be thinking, “Well, I’m pretty healthy—I don’t go to the doctor that often.” That’s great! But health issues can arise unexpectedly, and when they do, you don’t want to be stuck paying much more than you would if you had enrolled in Part B. Imagine needing outpatient surgery or extensive testing and facing massive out-of-pocket costs. That’s a financial risk most of us would prefer to avoid.

Coordination of Benefits: How PSHB and Medicare Part B Work Together

So how exactly do Medicare Part B and PSHB work in harmony? Think of Medicare Part B as the primary payer—this means it covers a large portion of your medical costs first. PSHB, as the secondary payer, steps in to cover what Medicare doesn’t, like deductibles and coinsurance. Together, they form a more complete safety net.

This combination can significantly reduce your healthcare expenses, especially when it comes to doctor visits and outpatient services. Medicare Part B also covers preventive care, which can keep you healthier and help you catch potential health issues before they become more serious (and more expensive). With both Part B and PSHB in place, your out-of-pocket costs could be minimal—assuming you’ve got both pieces of coverage working for you.

Making the Most of the PSHB Open Season

The PSHB Open Season is your opportunity to ensure that everything is lined up for 2025 and beyond. This is the time to review your coverage, compare plans, and decide whether you need to enroll in Medicare Part B if you haven’t already. While you don’t need to make any changes if you’re happy with your current FEHB plan (it will automatically transition to PSHB), it’s worth reviewing your options, especially if you’re approaching Medicare eligibility or already eligible.

Take the time to understand how Medicare Part B works with your PSHB plan and make sure you’re fully covered. You don’t want to wait until after January 1, 2025, when the PSHB program officially launches, to find out that you’re missing a crucial piece of the puzzle.

How Much Will Medicare Part B Cost You?

While we’re avoiding specifics on private plan costs, let’s talk in general terms about Medicare Part B premiums. In 2024, most people pay a standard monthly premium for Medicare Part B (around $174 per month), but this can vary depending on your income.

Yes, that’s an additional monthly cost, but think about it as an investment in your future healthcare. The premiums are far outweighed by the potential savings you’ll gain by avoiding high out-of-pocket costs down the road. Without Medicare Part B, your PSHB plan simply won’t cover as much as you might need, especially as healthcare needs increase with age.

Don’t Wait Until It’s Too Late

The shift from FEHB to PSHB might seem like a hassle, but the truth is, it’s an opportunity to better align your healthcare coverage for the future. Medicare Part B plays a critical role in making sure that you get the most out of your PSHB benefits. If you’re approaching 65 or already there, it’s time to make some decisions.

Remember: The PSHB program launches January 1, 2025, but you need to be ready now. Open Season runs from November 11 to December 9, 2024, and if you don’t have Medicare Part B yet, now is the time to explore your options. Don’t wait until it’s too late—because the penalties, higher out-of-pocket costs, and gaps in coverage can have lasting financial consequences.

Align Your Benefits for a Secure Future

As we approach the launch of the Postal Service Health Benefits program, it’s clear that Medicare Part B is the missing piece to ensure you unlock all the benefits PSHB offers. Without it, you could be left with higher costs and less comprehensive coverage. So take action now—review your options, enroll in Medicare Part B if you haven’t yet, and be ready for 2025. Your health and your wallet will thank you.