32 health plans have been approved for the 2025 rollout of the Postal Service Health Benefits (PSHB) program
In 2025, 1.9 million USPS employees, retirees, and family members will be required to switch from the Federal Employee Health Benefits (FEHB) program to a new Postal Service Health Benefits (PSHB) program. Open enrollment will coincide with the annual FEHB open season, which begins on November 11th this year runs until the second Monday in December.
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Last month, OPM released a list of 32 health plans that will be available in the PSHB program. There is a mix of fee-for-service and HMO plans as well as both nationwide and region-specific carriers. (Check out the list here.) If USPS employees and retirees don’t see their current FEHB insurance carrier on the list, a new one will need to be chosen. If no choice is made by the deadline, participants will be automatically enrolled in the cheapest nationwide non-high deductible plan. At the moment, it is unclear what happens if a USPS worker has an HSA in this situation as a high-deductible health plan is required when owning a health savings account.
Medicare Advantage Plans
FEHB Medicare advantage plans are low-cost options for retirees and PSHB will have these plans as well. OPM has asked insurance carriers to “enhance outreach” informing FEHB and PSHB participants about how health plans coordinate with Medicare. Some health plans offer reimbursements of Medicare B premiums. Starting in 2025, Medicare D will have a $2000 out-of-pocket annual maximum. Because of this, some FEHB participants might want to reconsider Medicare D coverage even if it wasn’t a viable option in the past. USPS annuitants covered by a PSHB plan will be required to have Medicare D either through a Medicare advantage plan or supplemental coverage.
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**Written by Benjamin Derge, Financial Planner, ChFEBC℠ The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
