Key Takeaways

• Failing to review your Postal Service Health Benefits (PSHB) plan during Open Season in 2025 can lead to unwanted changes in cost, coverage, or provider access starting in 2026.

• Some retirees could lose essential benefits or face higher out-of-pocket expenses if they ignore required Medicare Part B enrollment linked to PSHB eligibility.

What Open Season Means for USPS Retirees in 2025

Open Season is your yearly opportunity to review and change your health benefits. For 2025, it typically takes place from November to December. This window is especially important now that the Postal Service Health Benefits (PSHB) program has replaced the FEHB program for USPS employees and annuitants.

If you are a retiree or about to retire, 2025 Open Season is more than just an optional check-in. It’s your chance to ensure you’re enrolled in a plan that will continue to meet your medical and financial needs into 2026. Ignoring it could result in being defaulted into a plan you didn’t choose—or worse, losing access to prescription drug coverage or facing Medicare-related penalties.

Why PSHB Is Different from FEHB

The PSHB program officially launched in 2025 and functions separately from the Federal Employees Health Benefits (FEHB) Program. This shift impacts nearly all USPS retirees and employees. Here are some key differences:

• PSHB is only for Postal Service workers and retirees.

• Medicare Part B enrollment is mandatory for many annuitants to keep PSHB coverage.

• Automatic enrollment might not meet your needs if you don’t act during Open Season.

The transition from FEHB to PSHB created new rules and responsibilities, especially for retirees. If you retired before January 1, 2025, and are not enrolled in Medicare Part B, you may be exempt from certain requirements. Everyone else should prepare to comply or face disruptions in coverage.

Medicare Part B Enrollment Requirements

Under the PSHB program, certain retirees must be enrolled in Medicare Part B to maintain their health coverage. This requirement applies if:

• You are a USPS annuitant who turns 65 in 2025 or later.

• You retired after January 1, 2025.

• You are a family member of a retiree who qualifies under the rules.

There are a few exceptions, such as if you reside outside the United States, are covered by Indian Health Services, or are enrolled in VA healthcare. However, these are narrow circumstances.

If you don’t enroll in Medicare Part B when required, you could lose drug coverage under PSHB. Missing the Special Enrollment Period for Medicare Part B in 2024 (April through September) means you may be subject to late enrollment penalties and a gap in coverage.

What Happens If You Do Nothing in Open Season

If you ignore Open Season in 2025, here’s what could happen when your new plan year starts in January 2026:

• You might be automatically enrolled in a plan that doesn’t align with your healthcare needs.

• Premiums, deductibles, or copayments could increase without your knowledge.

• Your plan may drop certain benefits or limit your provider network.

• You might be removed from prescription drug coverage if you’re not in compliance with Medicare Part B rules.

Automatic enrollment isn’t necessarily tailored to you. It’s a fallback, not a safety net.

How to Review Your Plan Carefully

You need to evaluate more than just premiums. Take time to compare the following features:

• Out-of-pocket maximums: Know how much you could pay annually for in-network care.

• Prescription drug benefits: Check for formulary changes and coverage caps.

• Provider network: Confirm your doctors and specialists are still covered.

• Coordination with Medicare: Plans may waive deductibles or offer reduced copays if you’re enrolled in Medicare Part B.

• Extra benefits: Some PSHB plans offer wellness programs, telehealth, or chronic condition management.

Look beyond the surface. A low premium doesn’t guarantee affordability or adequate care.

Common Mistakes to Avoid This Year

USPS retirees have several potential pitfalls to watch for during Open Season. Here are some mistakes that could cost you:

• Assuming your current plan won’t change: Most plans adjust benefits, networks, and costs annually.

• Ignoring Medicare coordination: If you’re Medicare-eligible, failing to coordinate Part B with PSHB could disrupt your care.

• Waiting until the last minute: You’ll have limited time to ask questions or resolve issues if you delay.

• Not reading the Open Season notice: The notice includes updates specific to your current plan.

Being proactive in November and early December can prevent months of frustration in 2026.

Who Is Automatically Enrolled and Who Isn’t

Most current enrollees in FEHB plans as of 2024 were automatically transitioned to similar PSHB plans in 2025. But that’s not a guarantee for the future. You may still be auto-enrolled in 2026—but with different benefits, costs, or coverage rules.

Automatic enrollment is not offered if you:

• Are not currently enrolled in any plan.

• Opted out of Medicare Part B when it was required.

• Didn’t complete the re-enrollment steps for prescription drug coverage.

If you fall into any of these categories, you must take action during Open Season or risk losing coverage.

Important Deadlines and Timelines

Here’s what you need to keep on your calendar:

• Open Season: Runs from November to December 2025. Exact dates will be announced by OPM.

• Plan effective date: January 1, 2026.

• Medicare Part B compliance deadline: Varies, but non-compliance by year-end could result in coverage loss.

• Mid-Year Notification: Starting July 2025, PSHB enrollees will receive a list of unused benefits.

Missing these windows could delay or limit your ability to get the care you need in 2026.

Questions to Ask Before Open Season Ends

To make a confident decision, be sure to ask:

• Are there changes in my plan’s benefits or provider access for 2026?

• How do my prescription drugs fare under the new formulary?

• Am I enrolled in Medicare Part B if required?

• Does my plan coordinate with Medicare for lower out-of-pocket costs?

• What happens if I take no action this year?

These questions can guide you toward a smarter, more cost-effective choice.

What to Do If You’re Confused

If the new rules or plan options feel overwhelming, don’t hesitate to get help. You can:

• Contact OPM’s PSHB Navigator Help Line at 1-833-712-7742.

• Visit the official websites: LiteBlue (for employees) or KeepingPosted.org (for retirees).

• Speak with a licensed agent who understands PSHB and Medicare integration.

Taking advantage of these resources now can prevent bigger issues later.

Taking the Right Steps Today for a Healthier Tomorrow

Ignoring Open Season in 2025 is risky, especially with the unique requirements of the PSHB program and Medicare Part B coordination. Planning ahead helps ensure you get the coverage you need at a cost you can manage in 2026.

Review your options carefully, understand your responsibilities as a retiree, and ask for help when needed. If you’re not sure what your next step should be, get in touch with a licensed agent listed on this website for professional guidance.