Key Takeaways

• Enrolling in the PSHB Program requires accurate, timely decisions to protect your long-term healthcare coverage.

• Avoid common missteps like missing deadlines, ignoring Medicare requirements, or assuming your current FEHB plan will automatically carry over.

Why the PSHB Enrollment Process Matters More Than Ever

Starting in 2025, the Postal Service Health Benefits (PSHB) Program officially replaces FEHB coverage for United States Postal Service (USPS) employees, annuitants, and their eligible family members. Whether you’re still on the job or already retired, the choices you make during this enrollment window directly affect your healthcare access and costs for years to come.

This isn’t the kind of change you can breeze through. The PSHB transition comes with new rules, eligibility conditions, and coordination requirements—especially around Medicare. So let’s walk through exactly what you need to know to avoid costly missteps.

Get Familiar With Who Needs to Enroll—and Who Doesn’t

You might not need to do anything at all… or you might need to act fast. Here’s how to know where you fall:

You’re Automatically Enrolled If:

• You’re already enrolled in an FEHB plan in 2024.

• You’re a Postal Service employee or annuitant.

Your coverage will roll over into a corresponding PSHB plan starting January 1, 2025, but don’t let that give you a false sense of security. You’ll want to check that your automatically assigned plan still meets your needs.

You Must Actively Enroll If:

• You are not currently enrolled in FEHB but want to enroll in PSHB for 2025.

• You need to add or remove dependents.

• You want to switch plans.

Know the Enrollment Timeline

Open Season typically runs from November to December each year. For 2025, the PSHB enrollment period follows the same general window, though you should verify exact dates through USPS or OPM communications.

This is your chance to:

• Compare plans

• Make changes

• Add eligible family members

• Ensure Medicare coordination (if applicable)

Missing Open Season means waiting until the next enrollment window—unless you experience a Qualifying Life Event (QLE), like marriage or retirement.

Watch Out for These PSHB Enrollment Mistakes

Let’s talk about the common slip-ups that can mess with your coverage, delay benefits, or cost you money down the line.

1. Assuming Your FEHB Plan Will Stay Exactly the Same

Just because your FEHB plan rolls over into a PSHB version doesn’t mean it’s identical. Some benefits, provider networks, or cost-sharing elements may be different. You should:

• Review your plan brochure

• Compare it with other available PSHB plans

• Check prescription drug coverage and specialist availability

2. Ignoring Medicare Part B Requirements

If you’re a Postal Service annuitant or a covered family member who’s Medicare-eligible, you may be required to enroll in Medicare Part B to maintain full PSHB coverage.

Here’s what matters:

• If you’re 65 or older and Medicare-eligible, you’ll generally need to enroll in Part B unless you meet an exception.

• If you retired on or before January 1, 2025 and aren’t already enrolled in Part B, you’re usually exempt from this requirement.

Enrolling in Part B typically starts three months before you turn 65 and lasts for seven months total. If you miss that window, you may face late penalties and delayed coverage.

3. Missing the Open Season Deadline

This one’s big. If you miss your chance to enroll or make changes during Open Season, your options become very limited.

Only certain QLEs allow mid-year changes. So if you want to change plans or enroll for the first time, don’t wait until the last minute.

4. Not Updating Dependent Info

You must actively add new dependents during Open Season. If your family has changed—new spouse, adopted child, or a dependent aging out—you’ll need to update that manually. PSHB doesn’t guess for you.

5. Overlooking Out-of-Pocket Costs

Even though the government covers about 70% of your premium, your share—along with deductibles, copays, and coinsurance—can vary.

Look for:

• In-network vs. out-of-network cost differences

• Deductibles (ranging from a few hundred to a couple thousand dollars)

• Out-of-pocket maximums

Plans may also offer different rates for Self Only, Self Plus One, and Self and Family coverage. Always check the details.

Medicare Coordination Can Be a Game-Changer

Many PSHB plans offer incentives like reduced copays or lower deductibles if you also have Medicare Part B. That makes the coordination between PSHB and Medicare a critical factor for retirees.

What You Should Do:

• Review how your PSHB plan interacts with Medicare

• Factor in potential savings on prescription drugs, hospital stays, and outpatient care

• Use the Medicare Plan Finder and PSHB plan brochures to compare cost-sharing structures

Keep in mind: Medicare-eligible Postal Service annuitants and family members will also be automatically enrolled in a Medicare Part D Employer Group Waiver Plan (EGWP) for prescription drugs. This replaces any standalone Part D plan you may already have.

Qualifying Life Events: Your Mid-Year Lifeline

If you miss Open Season, you may still have options depending on life changes. These include:

• Marriage or divorce

• Birth or adoption

• Loss of other coverage

• Retirement

• Death of a family member

QLEs allow you to make adjustments, but you usually have 60 days from the event date to take action. Don’t delay.

What Happens If You Don’t Enroll in Medicare Part B?

If you’re required to enroll and don’t, your PSHB coverage could be reduced or more expensive. For example:

• You might lose cost-sharing incentives.

• Some plans may apply higher deductibles or coinsurance.

• You may miss out on coordinated prescription drug savings.

That’s why it’s important to act during your Initial Enrollment Period (IEP) or General Enrollment Period (GEP) if you missed your IEP. The GEP runs from January 1 to March 31 each year.

Don’t Forget About Retiree Responsibilities

As a USPS retiree, you’re still responsible for:

• Monitoring changes to your plan

• Making timely elections or updates

• Coordinating with Medicare if applicable

Your annuitant premiums may be deducted from your retirement annuity. Review your pay statement or annuity advice to confirm that your deductions are accurate.

Know What You’re Signing Up For

When enrolling in PSHB, be clear about:

• Who’s covered under your plan

• What’s included in terms of medical, prescription, and specialty care

• Whether the plan aligns with your long-term health needs and budget

Use the Open Season to compare all available PSHB plans, not just the one you had under FEHB. The more informed you are, the better your choices will be.

Stay Informed with Official Communications

USPS and OPM send out:

• Enrollment packages

• Plan comparison tools

• Notifications about automatic enrollment

Don’t ignore these. Read everything carefully and contact a licensed agent if something doesn’t make sense.

When in Doubt, Ask for Help

You don’t need to go it alone. Questions about Medicare coordination, plan comparisons, or enrollment status are common—and expected. Seeking help early can keep you from making avoidable mistakes.

You can:

• Use official USPS or OPM portals

• Reach out to your HR office or retirement services

• Speak with a licensed agent for personalized advice

Getting Your PSHB Enrollment Right Is Worth It

This year is a big one. With the shift to the PSHB Program now in full effect, your actions during Open Season carry more weight than ever. Avoiding mistakes now means avoiding headaches later—whether that’s reduced benefits, unexpected costs, or missed deadlines.

Take the time to review your coverage, understand your Medicare responsibilities, and confirm your elections before the deadline. And if you’re unsure, don’t hesitate to get in touch with a licensed agent listed on this website for professional advice tailored to your situation.