Key Takeaways
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Open Season Deadline Approaching: The 2024 Postal Service Health Benefits (PSHB) Open Season runs from November 11, 2024, to December 9, 2024. This is your only window to review, modify, or confirm your health coverage before the PSHB launch on January 1, 2025.
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Medicare Part B Considerations: If you retire on or after January 1, 2025, Medicare Part B enrollment is mandatory to maintain your PSHB coverage when you become eligible. However, this requirement does not apply if you retire before 2025.
Your Open Season Checklist: Don’t Miss Out on the PSHB Transition
The end of the Postal Service Health Benefits (PSHB) Open Season is fast approaching, running from November 11, 2024, to December 9, 2024. With the launch of the new PSHB system on January 1, 2025, this window is crucial for every USPS worker and retiree. You will automatically transition to a PSHB plan, but this is your chance to review and make any necessary adjustments to your health and dental coverage.
What’s the Big Deal About PSHB?
You might be wondering what PSHB even means for you. The Postal Service Reform Act of 2022 made this shift happen, and it’s big news because it replaces the Federal Employees Health Benefits (FEHB) program for postal workers and retirees. The good news is that while your health plan changes, your dental and vision coverage through the Federal Employees Dental and Vision Insurance Program (FEDVIP) stays the same. So, you can continue to get routine dental exams and prescription eyewear under FEDVIP with no interruptions.
Breaking Down Your Premium Costs
When it comes to understanding how PSHB will impact your wallet, let’s break it down. For 2025, the average biweekly premiums for PSHB plans are as follows:
- Self Only: $397.35
- Self Plus One: $858.89
- Self and Family: $934.65
The federal government covers a significant chunk of these premiums (about 72%), while you’re responsible for the remaining 28%. This translates to your share being:
- Self Only: $111.26
- Self Plus One: $240.49
- Self and Family: $261.70
You can expect to see annual costs totaling around:
- Self Only: $2,892.76
- Self Plus One: $6,252.74
- Self and Family: $6,804.20
Timing is Everything: Your Open Season Options
The Open Season is your chance to make sure your coverage is tailored to your needs. This isn’t just a passive transition; it’s a time to:
- Review plan details and costs for 2025.
- Compare your options using the OPM comparison tool.
- Make sure your family’s coverage needs are met, especially if they require specific doctors or services.
If you’re satisfied with your automatic enrollment into a PSHB plan similar to your current FEHB one, you don’t need to do anything. But if you want to explore other options or adjust your coverage levels, this is the time to do it.
What About Medicare Part B?
For those of you nearing retirement or already retired, understanding the Medicare Part B requirements under PSHB is crucial. Whether or not you need to enroll in Medicare Part B depends on your retirement timeline.
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Retiring on or before January 1, 2025: You are not required to enroll in Medicare Part B to maintain your PSHB coverage. This rule applies to your covered family members as well.
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Retiring after January 1, 2025: You will need to enroll in Medicare Part B when you become eligible, typically at age 65. The same applies to your family members under your plan when they reach Medicare eligibility.
However, there are a few exceptions to the rule. If you live outside the U.S. or receive healthcare through the VA or Indian Health Services (IHS), you may not have to enroll in Medicare Part B.
How PSHB and Medicare Part B Work Together
For many USPS retirees, enrolling in Medicare Part B could lead to additional cost savings. Several PSHB plans offer perks for those enrolled in Medicare Part B, such as:
- Reimbursement of Part B premiums.
- Waived deductibles.
- Lower out-of-pocket medical expenses.
These savings can really add up, making the combined coverage of Medicare and PSHB an attractive option for reducing overall healthcare costs in retirement. Keep this in mind when making your decisions during Open Season.
Special Enrollment Period (SEP) for Medicare Part B
There was a Special Enrollment Period (SEP) for Medicare Part B from April to September 2024, which allowed USPS retirees and their families to sign up without facing late enrollment penalties. If you took advantage of this, your PSHB coverage could bring even more savings once you’re fully integrated into the system.
The FEDVIP Side of Things: What You Should Know
Although the PSHB is taking center stage, let’s not forget about your FEDVIP dental and vision coverage. These benefits are separate from PSHB, and you can keep them without any disruption. If you need routine dental exams, cleanings, or prescription eyewear, FEDVIP will continue to provide these services in 2025.
You might notice some premium increases next year:
- Dental premiums: Increasing by an average of 2.97%.
- Vision premiums: Increasing by 0.87%.
While these increases are fairly moderate, it’s still worth reviewing your FEDVIP plan during Open Season to ensure it continues to meet your needs.
Prescription Drug Coverage under PSHB
If you’re already familiar with Medicare Part D, you’ll be glad to know that PSHB plans for Medicare-eligible participants automatically include prescription drug coverage. This means you won’t need to pay separate premiums for Part D. However, it’s always a good idea to check the plan’s formulary to make sure your prescriptions are covered under the new plan.
Stay Covered and Stay Informed
One of the biggest advantages of Open Season is the ability to compare your options. The OPM comparison tool will be your best friend during this period, allowing you to see side-by-side comparisons of PSHB and FEDVIP plans. Make sure you take the time to explore all of your options and adjust your plans if necessary.
Whether you stick with your current plan or make some changes, this is a great opportunity to ensure that your healthcare coverage is comprehensive and cost-effective for the upcoming year.
Make the Most of the PSHB Open Season Window
The PSHB Open Season from November 11, 2024, to December 9, 2024, is your time to get your health coverage in order before the new system goes live in 2025. Whether you’re switching plans, reviewing your family’s coverage, or considering Medicare Part B enrollment, this window is your best shot to make sure everything is in place.
Don’t let the deadline slip by—double-check your PSHB and FEDVIP plans now to ensure you’re fully covered come January 1, 2025.
