Key Takeaways
- Your dental and vision coverage is staying the same—even with the shift to the new Postal Service Health Benefits (PSHB) program, dental and vision plans under FEDVIP will remain intact.
- Open Season enrollment is critical—from November 11, 2024, to December 9, 2024, you’ll have the chance to review your PSHB and FEDVIP plans, ensuring you’re on track for the January 1, 2025, PSHB launch.
The Big Shift to PSHB: What It Means for Your Dental and Vision Benefits
By now, you’ve probably heard that starting January 1, 2025, the Postal Service Health Benefits (PSHB) program will officially replace the Federal Employees Health Benefits (FEHB) program for USPS employees and retirees. This change comes as part of the Postal Service Reform Act of 2022, which aims to revamp health benefits for postal workers and retirees, bringing them into a system tailored to their specific needs.
But while the PSHB marks a big shift in how health benefits are structured, it’s important to know that not everything is changing. Specifically, your dental and vision benefits, provided through the Federal Employees Dental and Vision Insurance Program (FEDVIP), remain unaffected. Let’s dive into what that means for you and how to ensure your coverage stays up to par during the upcoming Open Season.
FEDVIP Coverage: Unchanged and Still Robust
First things first—take a deep breath because your FEDVIP dental and vision benefits are staying the same. Whether you’re an active USPS employee or a retiree, the launch of PSHB won’t alter your access to FEDVIP. This means all the routine care you rely on, like your regular dental cleanings, exams, and even prescription eyewear, is still covered under FEDVIP plans.
This is huge because we all know how critical maintaining oral and eye health is. Routine dental checkups help prevent more serious issues like gum disease or tooth decay, while a solid vision plan makes sure your eyesight stays sharp—especially if you require prescription glasses or contact lenses. You can continue to expect the same level of service you’ve had under FEDVIP, even as PSHB rolls out in 2025.
Open Season: Your Time to Review and Adjust Coverage
With the switch to PSHB, USPS employees and retirees are automatically transitioned into a new PSHB plan that aligns closely with their current FEHB plan. However, the upcoming Open Season (November 11 – December 9, 2024) is your key window to make sure everything checks out—especially for your dental and vision benefits.
During this period, you’ll have the opportunity to review, update, or even change your current FEDVIP plans. While the dental and vision coverage remains consistent, this is still your chance to fine-tune your coverage to match any new life circumstances or health needs you may have.
In addition, FEDVIP premiums for 2025 are seeing only slight increases. Dental premiums are expected to rise by an average of 2.97%, and vision premiums by a minimal 0.87%. In a world where healthcare costs seem to rise exponentially, this small bump in FEDVIP premiums is relatively manageable, offering some financial relief when compared to other types of medical coverage costs.
What Does the PSHB Change Mean for Your Overall Health Benefits?
While your dental and vision coverage under FEDVIP remains stable, PSHB represents a significant change for the broader scope of your healthcare benefits. PSHB will offer a range of medical plans specifically designed for USPS employees and retirees. As we get closer to January 1, 2025, make sure to take time during the 2024 Open Season to explore the available PSHB plans to see which one works best for you and your family.
It’s also important to note that if you retire on or after January 1, 2025, Medicare Part B enrollment becomes a requirement to maintain your PSHB plan when you become Medicare-eligible (usually at age 65). This integration can potentially save you money on your healthcare costs by lowering out-of-pocket expenses through reduced deductibles and premiums when Medicare and PSHB plans work together. However, if you retired before January 1, 2025, there’s no mandate to enroll in Medicare Part B—so that’s one less thing to worry about if it doesn’t fit into your retirement plans.
Key Considerations for Medicare and PSHB
Speaking of Medicare, it’s worth reviewing how it interacts with PSHB if you’re heading toward retirement. If you’re already enrolled in Medicare Part B or plan to enroll when you’re eligible, many PSHB plans provide extra perks. These can include reimbursements for Part B premiums, waived deductibles, and overall lower out-of-pocket medical expenses.
This means that while the initial requirement to enroll in Medicare Part B might seem like an extra step, it’s designed to reduce your healthcare costs in the long run. And for those already in retirement and eligible for Medicare, PSHB also includes Medicare Part D prescription drug coverage, so there’s no need for separate Part D premiums anymore.
For retirees not yet enrolled in Medicare Part B, don’t stress—the Special Enrollment Period (SEP) that ran earlier in 2024 (from April to September) allowed retirees and their families to sign up for Part B without facing any late enrollment penalties. If you took advantage of this SEP, you’re already ahead of the game.
Staying Covered: Your Path Forward
When it comes to navigating the changes with PSHB, keeping your dental and vision coverage intact is straightforward. FEDVIP continues as it always has—providing reliable, comprehensive dental and vision care for USPS employees and retirees. This means your routine care, like dental cleanings and vision prescriptions, is still covered.
Even with slight increases in premiums for 2025, these changes are relatively minor compared to the rising costs of other healthcare services. This is why Open Season is so important. It allows you the flexibility to assess whether the current plans you have under FEDVIP are still the best fit for your needs—or if it’s time for a change.
How PSHB Impacts Your Overall Federal Benefits
It’s also reassuring to know that PSHB enrollment doesn’t affect your access to other federal benefits. Programs like the Federal Employees’ Group Life Insurance (FEGLI), the Federal Long Term Care Insurance Program (FLTCIP), and of course, FEDVIP, all remain available to you. The seamless continuation of these programs, even after the introduction of PSHB, offers a level of security for you and your family’s well-being.
As 2025 approaches, we encourage you to explore the options available through the OPM plan comparison tool during Open Season. This tool will help you compare and contrast your PSHB and FEDVIP options, allowing you to make informed decisions about your health benefits for the upcoming year.
Ready for PSHB? Let’s Wrap It All Up
By now, you should feel a little more at ease about what’s ahead. The Postal Service Health Benefits (PSHB) program is coming, and while it’s a significant change in the healthcare landscape for USPS employees and retirees, your dental and vision benefits under FEDVIP remain unchanged. That’s great news, especially with Open Season right around the corner from November 11 to December 9, 2024.
Make the most of this period to ensure your FEDVIP plans are still working for you, and don’t hesitate to explore the PSHB options available to match your healthcare needs as January 2025 approaches. Whether you’re an active employee or heading into retirement, there’s no need to worry—your dental and vision benefits are secure, and you’re on the path to maintaining comprehensive coverage.
