Key Takeaways

• PSHB deductibles in 2025 are significantly higher than those under FEHB, making it essential to understand the full cost implications of your plan.

• There are legal and strategic ways to reduce your deductible burden—ranging from Medicare enrollment to choosing the right plan tier and using preventive services wisely.

Understanding Why Deductibles Are Higher in 2025

The transition from the Federal Employees Health Benefits (FEHB) Program to the Postal Service Health Benefits (PSHB) Program has brought with it a series of cost structure changes. Among the most noticeable are the higher deductibles you now face.

In 2025, PSHB deductibles vary by plan type but generally fall into two categories:

• Low-deductible plans: Around $350 to $500 for Self Only coverage and $700 to $1,000 for Self Plus One or Self and Family.

• High-deductible plans: Range from $1,500 to $2,000 for Self Only and $3,000 to $4,000 for family plans.

These figures are significantly higher than what many postal employees and retirees were used to under FEHB, especially for those who had remained in the same plan for several years.

Why Deductibles Matter More Than You Think

Deductibles are the amount you must pay out of pocket before your plan begins to cover costs. In PSHB, this matters for several reasons:

• Timing of care: If you receive care early in the year, you may need to meet your deductible before getting substantial coverage.

• Unexpected costs: Deductibles apply to a wide range of services, including lab tests, specialist visits, and outpatient surgeries.

• Budgeting challenges: A high deductible can cause a sudden strain on your finances if you’re unprepared.

Understanding your deductible helps you plan smarter. But how can you bring that cost down?

1. Medicare Part B Enrollment Can Be a Game Changer

If you’re a Medicare-eligible annuitant or family member, enrolling in Medicare Part B may reduce or even eliminate your PSHB deductible, depending on the plan you select.

Many PSHB plans offer lower or waived deductibles for enrollees who carry both Medicare Part B and a PSHB plan. As of 2025, this benefit is only available if you are enrolled in Part B—simply being eligible is not enough.

Also, keep in mind:

• Medicare pays first, reducing the amount your PSHB plan needs to cover.

• Many PSHB plans coordinate benefits seamlessly with Medicare to minimize out-of-pocket costs.

If you retired on or before January 1, 2025, and are not enrolled in Medicare Part B, you may be exempt from the Part B requirement. However, for most current and future retirees, enrollment is strongly encouraged.

2. Choose the Right Plan Tier for Your Situation

Each PSHB plan has multiple options—often a standard and a high-deductible version. While the high-deductible plan may have lower monthly premiums, you’ll be responsible for more upfront costs.

Here’s what to consider:

• Are you generally healthy? You might be able to manage with a high-deductible plan if you rarely need care.

• Do you expect ongoing care or specialist visits? A low-deductible plan could save you more in the long run.

• Are you covering dependents? Their healthcare usage affects your deductible burden, especially under family or Self Plus One coverage.

Understanding your personal and family health needs will help you choose a plan that fits your financial situation—not just your monthly budget.

3. Take Advantage of Preventive Care Services

Preventive services—such as vaccinations, annual wellness visits, and screenings—are fully covered by most PSHB plans even before you meet your deductible. This is not just a health advantage, but a financial one.

By using these services regularly, you can:

• Catch potential issues early before they escalate into more expensive treatments.

• Avoid paying full price for care that could have been prevented.

In 2025, all PSHB plans are required to comply with the Affordable Care Act’s rules regarding preventive services. That means you can make use of:

• Annual physicals

• Flu shots

• Screenings for cholesterol, cancer, diabetes, and more

All without dipping into your deductible.

4. Use Health Savings or Flexible Spending Accounts Wisely

If you’re in a high-deductible plan, you may be eligible to contribute to a Health Savings Account (HSA). In 2025, the HSA contribution limit is $4,300 for individuals and $8,550 for families, with a $1,000 catch-up contribution if you’re 55 or older.

Advantages of HSAs:

• Tax-free contributions, growth, and withdrawals for qualified medical expenses.

• Funds roll over year to year—no use-it-or-lose-it risk.

Alternatively, if your plan is not HSA-compatible, you may have access to a Healthcare Flexible Spending Account (FSA). The 2025 FSA contribution limit is $3,300, with a $660 carryover permitted.

These accounts let you pay for deductible costs with pre-tax dollars, which can translate to real savings.

5. Stay In-Network to Avoid Surprises

PSHB plans typically feature large provider networks, but out-of-network care is far more costly and subject to different deductible rules. In many cases, out-of-network deductibles are two to three times higher than in-network ones.

Avoid these extra expenses by:

• Verifying a provider’s network status before care.

• Using your plan’s online directory or customer service.

In 2025, you’re not only managing cost—you’re also managing risk. In-network care provides predictable cost-sharing and avoids unexpected out-of-pocket burdens.

6. Time Major Procedures Strategically

If you know you’ll need a costly procedure, such as surgery or advanced diagnostics, it may be beneficial to schedule it after you’ve already met your deductible for the year.

You might also:

• Coordinate multiple services within the same calendar year

• Ask providers about bundled billing or discounts for upfront payment

Understanding your benefit period—usually January through December—can help you make the most of your deductible once it’s paid.

7. Consider How Family Members Affect the Deductible

For those under Self Plus One or Self and Family coverage, deductibles often apply per person or have a combined family deductible.

This means:

• One family member’s expenses can help meet the overall deductible

• But you may still need to meet individual deductibles before coverage begins

Understanding your plan’s family deductible rules ensures you know when coverage will actually kick in for each household member.

8. Don’t Ignore the Annual Out-of-Pocket Maximum

While deductibles are just one piece of the puzzle, don’t forget about the annual out-of-pocket maximum (OOPM). In 2025, in-network OOPMs for PSHB plans can reach up to $7,500 for Self Only and $15,000 for family coverage.

Once you hit this limit, your plan pays 100% of covered services for the remainder of the year.

This is your true safety net. Even if you have a high deductible, reaching your OOPM means you won’t be burdened by additional healthcare costs for the rest of the calendar year.

Why Awareness of PSHB Deductibles Can Help You Save Thousands

Many postal workers and retirees are still adjusting to the PSHB structure in 2025. What feels like a minor policy change can result in significant differences in out-of-pocket costs.

By understanding how deductibles work—and using every available tool to reduce their impact—you empower yourself to make smarter health and financial decisions.

Get familiar with your plan documents. Use preventive services. Coordinate with Medicare if you’re eligible. And don’t hesitate to get help.

For personalized assistance, get in touch with a licensed agent listed on this website. They can help you choose a PSHB plan that works best for your health needs—and your wallet.