Key Takeaways

• In 2026, Postal Service Health Benefits (PSHB) operates as a separate system from FEHB, with different enrollment rules, timelines, and coordination requirements that directly affect how you manage coverage.

• Understanding what changed from FEHB to PSHB helps you avoid enrollment mistakes, unexpected costs, and missed coordination rules, especially if you are nearing retirement or already eligible for Medicare.

Why FEHB And PSHB Are No Longer The Same

For many years, postal employees and retirees were covered under the Federal Employees Health Benefits (FEHB) Program. That changed when Postal Service Health Benefits (PSHB) became a separate program designed specifically for postal workers and annuitants. In 2026, this separation is fully in effect, and the differences now matter in practical ways.

PSHB is not simply a renamed FEHB option. It has its own enrollment structure, plan lineup, contribution rules, and Medicare coordination requirements. While FEHB still exists for most federal employees, postal workers are now governed by PSHB rules, even though some features may look familiar at first glance.

Understanding this shift helps you plan ahead instead of assuming that old FEHB rules still apply.

How Enrollment Rules Changed In 2026

Enrollment is one of the most important areas where FEHB and PSHB differ.

Under FEHB, eligibility was tied broadly to federal employment or retirement status. In PSHB, eligibility is limited specifically to:

• Active United States Postal Service employees

• Postal retirees and annuitants

• Eligible family members of postal enrollees

In 2026, you enroll in PSHB during the annual Open Season, which runs from mid-November through mid-December, with coverage effective January 1. Outside of Open Season, changes are only allowed if you experience a qualifying life event.

If you previously had FEHB coverage as a postal worker, you were transitioned into PSHB automatically. However, ongoing responsibility now falls on you to review PSHB-specific options each year rather than assuming continuity under FEHB.

What Changed About Employer Contributions

Employer contributions remain a key feature of PSHB, but the structure is now distinct from FEHB.

In 2026:

• The Postal Service continues to pay a significant portion of the total premium

• Your share is deducted from pay if you are active, or from your annuity if you are retired

• Contribution formulas are governed under PSHB rules rather than FEHB guidelines

While the general idea of cost-sharing still applies, PSHB operates under its own statutory framework. This means contribution calculations, government caps, and plan participation rules are no longer interchangeable with FEHB.

Knowing this distinction matters when you compare plans or budget for future healthcare expenses.

How Deductibles And Cost Sharing Are Structured Now

Deductibles, copayments, and coinsurance remain part of PSHB coverage, but the way they are presented and applied can differ from what you remember under FEHB.

In 2026, PSHB plans typically include:

• Annual deductibles that reset every January 1

• Fixed copayments for common services

• Coinsurance percentages for higher-cost care

• Annual out-of-pocket maximums that limit your total spending for covered services

These cost-sharing features may feel familiar, but you should not assume they mirror FEHB designs. PSHB plans are negotiated and structured specifically for the postal population, which can affect how quickly costs add up over the year.

Understanding how these elements interact helps you avoid surprises once coverage begins.

Why Medicare Coordination Is A Major Difference

One of the most significant changes between FEHB and PSHB is how Medicare coordination is handled.

In 2026, most PSHB-eligible retirees who are entitled to Medicare Part A are required to enroll in Medicare Part B to maintain full PSHB coverage, unless they qualify for a limited exception.

This requirement is more clearly defined and enforced under PSHB than it was under FEHB. The goal is to reduce overall healthcare costs while improving coordination between federal retiree coverage and Medicare.

If you are approaching Medicare eligibility, this change directly affects:

• Your monthly healthcare budgeting

• How primary and secondary coverage work together

• Your long-term retirement planning

Failing to understand this requirement can result in reduced benefits or higher out-of-pocket costs.

What Stayed Similar Between FEHB And PSHB

Despite the changes, not everything is different.

In 2026, PSHB still shares some familiar characteristics with FEHB, including:

• Annual Open Season timing

• Nationwide coverage options

• Family enrollment availability

• Continuation of coverage into retirement, if eligibility rules are met

These similarities can make PSHB feel familiar, but they should not be mistaken for identical systems. The details behind eligibility, coordination, and administration are what truly set PSHB apart.

How Plan Choice Decisions Are Affected

Because PSHB is separate from FEHB, plan selection now requires a PSHB-specific review each year.

When evaluating options in 2026, you should consider:

• Expected medical usage over the year

• How deductibles and copayments apply to routine care

• The impact of Medicare coordination if you are retired or retiring soon

• Annual out-of-pocket limits and how quickly they may be reached

These considerations matter more now because assumptions based on FEHB experience may no longer hold true under PSHB.

What Happens If You Do Nothing During Open Season

If you take no action during Open Season in 2026, you generally remain enrolled in your current PSHB plan. However, automatic continuation does not mean the plan remains the best fit.

Each year can bring:

• Adjustments to deductibles and cost sharing

• Changes in covered services

• Updates to coordination rules

Reviewing your plan annually is the only way to ensure it still aligns with your healthcare and financial needs.

How Timing Matters More Under PSHB

Timing plays a larger role under PSHB than many postal workers expect.

Important 2026 timing points include:

• Open Season enrollment in late fall

• January 1 reset of deductibles and out-of-pocket maximums

• Medicare enrollment windows for those approaching eligibility

Missing or misunderstanding these timelines can lead to coverage gaps or avoidable expenses.

Why These Changes Matter For Long-Term Planning

The move from FEHB to PSHB is not just an administrative change. It affects how you plan for healthcare costs throughout your career and into retirement.

In 2026, PSHB influences:

• Retirement budgeting

• Medicare enrollment decisions

• Annual healthcare spending patterns

Being proactive now helps you avoid reactive decisions later, when options may be more limited.

Bringing The Changes Together

FEHB and PSHB may look similar on the surface, but in 2026 they operate under different rules with real consequences for postal workers. Understanding what changed, why it changed, and how it affects your costs and coverage allows you to make informed decisions instead of relying on outdated assumptions.

If you want personalized guidance on how these changes apply to your situation, consider reaching out to one of the licensed agents listed on this website. A professional review can help you understand your options, confirm enrollment requirements, and plan confidently for the year ahead.