Key Takeaways
- The 2024 Open Season marks a pivotal shift as USPS employees and retirees transition from FEHB to the new Postal Service Health Benefits (PSHB) program, launching on January 1, 2025.
- This year’s Open Season, from November 11 to December 9, 2024, offers an opportunity to reassess your health plan, especially with PSHB providing new options and Medicare Part B integration for retirees.
Time for a Health Plan Check-Up: Open Season is Here!
As a USPS employee or retiree, you’re probably familiar with Open Season, but this year it carries some added weight. With the launch of the Postal Service Health Benefits (PSHB) program in January 2025, the 2024 Open Season (November 11 – December 9, 2024) is more than just a routine opportunity to make changes. It’s a chance to rethink your health coverage, especially in light of new options under PSHB, Medicare Part B integration for retirees, and changes to FEDVIP premiums for dental and vision care.
What’s New in 2024?
Open Season in 2024 is different because it kicks off the transition to the PSHB program, created under the Postal Service Reform Act of 2022. Starting on January 1, 2025, all USPS employees and retirees will be automatically enrolled in a PSHB plan that mirrors their current Federal Employees Health Benefits (FEHB) plan. But there’s more to this shift than automatic enrollment.
For the first time, you’ll have the chance to explore and select a PSHB plan tailored to your unique needs. The new system is designed to offer more streamlined options for USPS workers, aligning with broader reforms that affect how health benefits are managed and funded.
The Medicare Part B Factor: Know What’s Required
One of the major changes accompanying the PSHB transition is the Medicare Part B requirement for retirees. Here’s the breakdown:
- If you retire on or before January 1, 2025: You won’t be required to enroll in Medicare Part B to maintain your PSHB coverage. This rule also applies to your covered family members.
- If you retire after January 1, 2025: You will be required to enroll in Medicare Part B when eligible (typically at age 65) in order to keep your PSHB plan. Any family members covered under your plan must also enroll in Part B when they become eligible.
While Medicare Part B comes with additional premiums, many PSHB plans offer cost-saving benefits like Part B premium reimbursements and lower out-of-pocket costs. It’s a crucial factor to consider as you evaluate your health coverage during this Open Season.
Open Season: Your Chance to Review and Adjust
The 2024 Open Season gives you the perfect window to review and possibly adjust your health and dental coverage. Here’s a closer look at what you need to keep in mind:
Postal Service Health Benefits (PSHB) Program
The PSHB program is specifically tailored for USPS employees and retirees, with a similar structure to the FEHB but with USPS-specific nuances. The premiums for PSHB are divided into two parts: 72% paid by the government and 28% covered by the employee or retiree. Here’s a breakdown of average premium costs starting in 2025:
- Self Only: $397.35 biweekly ($2,892.76 annually for employees)
- Self Plus One: $858.89 biweekly ($6,252.74 annually for employees)
- Self and Family: $934.65 biweekly ($6,804.20 annually for employees)
These contributions will be automatically deducted from your paycheck or annuity, just like with FEHB. If your needs have changed, or you’ve been looking for a way to save on your health plan, Open Season is the ideal time to reassess your options.
FEDVIP: Dental and Vision Coverage Stays Intact
The Federal Employees Dental and Vision Insurance Program (FEDVIP) continues to provide dental and vision coverage for USPS employees and retirees. Services such as cleanings, exams, and prescription eyewear will remain available, with the option to adjust your coverage during Open Season.
However, take note: FEDVIP premiums are set to increase in 2025, with dental premiums going up by an average of 2.97% and vision premiums by a modest 0.87%. Even though these increases are relatively small, it’s still worth reviewing your current plan to ensure it meets your needs without stretching your budget.
Don’t Forget Prescription Drug Coverage
For Medicare-eligible participants, PSHB plans will include Medicare Part D prescription drug coverage. This means there’s no need for separate Part D premiums, potentially simplifying your healthcare management and cutting costs. This integrated coverage can be especially beneficial for retirees who rely on prescription medications.
If prescriptions are a major part of your healthcare, it’s worth reviewing the formularies provided under your PSHB plan to ensure your medications are covered. Open Season provides the perfect opportunity to explore this.
Tools to Make Your Decision Easier
With the new PSHB program comes a new set of comparison tools. These tools will help you evaluate your health and dental plan options during Open Season, giving you the ability to compare different PSHB plans as well as FEDVIP options. The goal here is to ensure that you’re not just automatically enrolled but that you’re actually choosing a plan that works for you and your family.
If you’re unsure about the best path forward, don’t hesitate to use these resources. They can provide a clear side-by-side breakdown of costs, coverage levels, and additional benefits that could make all the difference in your health and financial well-being.
Preparing for the Future: A Look Beyond 2025
While 2024 is the year to focus on, it’s also important to think ahead. As USPS continues to streamline and update its health benefits under the Postal Service Reform Act, it’s a good idea to be proactive about the future of your healthcare. For retirees, that includes understanding how Medicare will integrate with PSHB and planning accordingly.
And if you’re an active USPS employee, now might be the time to consider how your health needs might change as you move closer to retirement. With PSHB offering comprehensive coverage options and Medicare integration, it’s all about finding the right balance between your current and future healthcare needs.
Your Health, Your Choice: Make Open Season Count
Open Season 2024 is shaping up to be a turning point for USPS employees and retirees, and it’s all about making the most of this opportunity to reassess your health coverage. With the transition to PSHB on the horizon and Medicare considerations for retirees, now’s the time to dive into the details and ensure your coverage aligns with your lifestyle, health, and financial situation.
Whether you’re adjusting your dental and vision coverage under FEDVIP or exploring new options within PSHB, take full advantage of the resources available during Open Season. This window from November 11 to December 9, 2024, might be your best chance to make a smart, informed choice about your health coverage for the year ahead and beyond.
Taking Control of Your Health Coverage
As we head into the 2024 Open Season, think of it as a fresh start for your health coverage. The Postal Service Health Benefits program is designed to bring more tailored, flexible options for USPS employees and retirees, and this is your moment to embrace those changes. From understanding Medicare requirements to reviewing new plan offerings, your choices this Open Season will help set you up for a healthier, more secure future.
