Key Takeaways

• Missing your PSHB enrollment deadline could mean losing health coverage for months, especially if you are transitioning from FEHB or becoming Medicare-eligible.

• Enrollment windows are limited and strictly enforced, so it’s crucial to plan ahead and know exactly when you are eligible—and required—to enroll.

The Shift to PSHB Is Already Underway

In 2025, the Postal Service Health Benefits (PSHB) Program officially replaces FEHB coverage for USPS employees, annuitants, and their eligible family members. This change brings about more than just new plan options. It also introduces new deadlines and mandatory steps—especially if you’re turning 65 or are already Medicare-eligible.

Failing to meet the required enrollment deadlines could disrupt your health insurance and leave you without coverage for a significant period.

Understanding the PSHB Enrollment Timeline

The PSHB program follows strict timelines depending on your current employment status, retirement status, and Medicare eligibility. Unlike the FEHB system, PSHB requires closer coordination with Medicare Part B if you’re eligible.

For Current Postal Employees

• Initial Enrollment: You remain automatically enrolled in your existing FEHB plan through 2024.

• Open Season (November–December 2024): You must elect a PSHB plan during this period to maintain coverage in 2025.

• Effective Date: Your PSHB coverage begins January 1, 2025.

For Postal Retirees and Annuitants

• Open Season Enrollment: If you were already retired by January 1, 2024, and enrolled in FEHB, you must have chosen a PSHB plan during Open Season to avoid a lapse.

• Ongoing Requirements: Once enrolled in PSHB, future changes can only be made during Open Season or due to a qualifying life event (QLE).

For Medicare-Eligible Annuitants

• Medicare Part B Requirement: If you’re Medicare-eligible and retired after January 1, 2025, or you were under age 64 as of January 1, 2025, you are required to enroll in Medicare Part B to maintain PSHB eligibility.

• Special Enrollment Period (SEP): A one-time SEP ran from April 1 to September 30, 2024, allowing annuitants to enroll in Medicare Part B without penalties.

Missing these deadlines—especially for Medicare Part B—can mean losing PSHB coverage or facing a coverage gap and late enrollment penalties.

What Happens If You Miss the Deadline?

The consequences of missing your PSHB or Medicare Part B enrollment deadlines are severe:

• Loss of PSHB Coverage: If you fail to elect a plan during the Open Season, you may be left without coverage.

• Delayed Coverage: If you miss the Special Enrollment Period for Medicare Part B, you may have to wait until the General Enrollment Period (January 1 to March 31), with coverage starting in July—leaving you uncovered for months.

• Late Enrollment Penalties: Medicare Part B penalties apply for each year you delay enrollment without creditable coverage, and they are lifetime penalties.

Qualifying Life Events (QLEs) Are the Exception—Not the Rule

If you miss Open Season, your only opportunity to enroll or change plans is through a QLE. These include:

• Marriage or divorce

• Birth or adoption of a child

• Loss of other health coverage

• Relocation outside your plan’s service area

These events must be reported within a strict 60-day window. Waiting longer disqualifies you from making changes.

Why Medicare Part B Enrollment Matters

PSHB integrates with Medicare Part B for Medicare-eligible enrollees. If you’re required to enroll and fail to do so:

• Your PSHB plan may deny claims.

• You could be disenrolled from PSHB.

• You lose access to enhanced benefits such as reduced cost-sharing and prescription drug savings.

In 2025, the standard Medicare Part B premium is $185, and the annual deductible is $257. While these costs may seem like an added expense, most PSHB plans offer improved benefits if you are enrolled in Part B—often making it cost-effective in the long run.

Timeline for Medicare-Eligible Annuitants

Here’s what the 2025 schedule looks like for Medicare-eligible postal annuitants:

• January 1, 2025: PSHB coverage goes into effect.

• By this date, you must be enrolled in Medicare Part B if it’s required based on your retirement and age status.

• April 1 – September 30, 2024: Special Enrollment Period to sign up for Medicare Part B without penalty.

• Future Open Seasons: Fall each year (typically mid-November to mid-December) for making changes to your PSHB plan.

What If You’re Not Required to Enroll in Part B?

You may be exempt from mandatory Medicare Part B enrollment if:

• You retired on or before January 1, 2025

• You were age 64 or older on January 1, 2025

• You reside outside the U.S.

• You receive VA or Indian Health Service coverage

While you’re not required to enroll in Medicare Part B under these conditions, doing so could still provide cost-sharing advantages under your PSHB plan. It’s worth reviewing the specific plan benefits.

Automatic Enrollment Isn’t Guaranteed

Some Postal retirees mistakenly believe they are automatically enrolled in PSHB. That’s only partially true. While there is automatic migration from FEHB to PSHB for most enrollees, you still must:

• Review your plan details to ensure it still meets your needs.

• Confirm Medicare Part B enrollment if you’re required to enroll.

• Actively choose a different PSHB plan during Open Season if your needs change.

Neglecting any of these steps could result in being locked into a plan you didn’t want—or worse, losing coverage altogether.

Prevent Gaps with These Best Practices

To stay covered without interruption:

• Mark your calendar for Open Season each year.

• Enroll in Medicare Part B if you’re required—or even if you’re not, consider whether it could lower your costs.

• Keep your address and contact information updated with OPM and the PSHB plan.

• Report QLEs within 60 days to ensure timely plan adjustments.

• Reevaluate your PSHB plan annually, especially if your health needs or medications change.

Your Benefits Depend on Timing and Accuracy

You have a lot at stake when it comes to health coverage. Every form, deadline, and eligibility requirement plays a role. If you miss a Medicare enrollment period or fail to update your PSHB plan during Open Season, it could delay your coverage for months—or lead to out-of-pocket medical bills you weren’t expecting.

To avoid surprises, take time now to understand your deadlines based on your age, retirement status, and Medicare eligibility.

Protect Your Coverage with Timely Decisions

The Postal Service Health Benefits program in 2025 is not just a rebranding of FEHB—it’s a shift that introduces new requirements, tighter deadlines, and closer alignment with Medicare. Missing a single enrollment window could cost you access to healthcare for months or leave you paying penalties for years.

Get proactive. Review your status. Confirm your eligibility. And if you’re uncertain, reach out for support.

For personalized help, speak with a licensed agent listed on this website who can explain your options and help ensure you’re covered without interruption.