When President Biden signed the Postal Service Reform Act into law on April 6, 2022, the new legislation mandated OPM to set up a health insurance program specifically for USPS workers and retirees. The new law eliminates a previous 2006 mandate requiring the USPS to pre-fund its retiree health benefits – a requirement that proved to be a financial burden.
The New PSHB Program
Set to launch in 2025 the new Postal Service Health Benefits (PSHB) program is a separate program within FEHB. Administered by the Office of Personnel Management (OPM), PSHB plans will replace FEHB coverage for eligible USPS employees, annuitants (retirees), and their eligible family members. For coverage effective starting January 1, 2025, postal workers and retirees can no longer remain in their current FEHB plans. However, there is good news. According to the National Active and Retired Federal Employees Association (NARFE) Fact Sheet, the new program should lower the average cost of premiums for both PSHB and FEHB enrollees.
Enrollment In A 2025 PSHB Plan Is Mandatory
USPS workers and retirees must enroll in PSHB during the upcoming Open Season November 11, 2024, through December 9, 2024. As you know, Open Season is when all federal employees can make changes to their healthcare plans for the following year. If a new PSHB plan hasn’t been selected during Open Season, the OPM will automatically enroll participants into the least expensive no-fee, non-high-deductible plan available.
“For the most part, PSHB enrollees can choose a new plan that’s similar to their current FEHB plan.”
PSHB Rates & Coverage Will Be Available To Review In September 2024
So far, there are a total of 32 plans that have received conditional approval for the PSHB program. Providers include trusted names like Blue Cross Blue Shield, Kaiser Permanente, and Aetna. Primarily HMOs, some of the plans are available nationwide while others operate in specific regions. For the most part, PSHB enrollees can choose a new plan that’s similar to their current FEHB plan. PSHB rates and coverage will be available for review in September 2024.
It’s important to note that enrollment in a PSHB plan will not interfere with enrollment in other federal insurance programs including:
- Federal Employees Dental and Vision Insurance Program (FEDVIP)
- Federal Flexible Spending Account Program (FSAFEDS)
- Federal Employees Group Life Insurance (FEGLI), or
- Federal Long Term Care Insurance Program (FLTCIP)
For more information, you can download PSHB fact sheets for current Postal employees and for Postal annuitants (retirees) on the USPS website.
