If you’re an annuitant as of January 1, 2025, and are already enrolled in Medicare Part B, you ARE required to remain enrolled in Medicare Part B to continue coverage under PSHB. Image: Andrei_R/Shutterstock.com
By: Lacie Harmon, The Federal Benefits GroupUpdated: If you’re a post office employee or retiree, you’re probably aware by now that all USPS employees and retirees are in the process of moving into the new PSHB group plan this Open Season (which runs through Dec 9 for FEHB, but has been extended for postal employees and retirees only and now runs through Friday December 13 at 11:59PM EST).
Here’s a friendly reminder that the FEHB and PSHB coverages provide excellent value and coverage for you and your family: may this buoy your spirits if you’re one of those who will need to make changes this year –most will not – and here are the answers to some of the most frequently asked questions we at The Federal Benefits Group have been receiving:
1. What’s going on, anyway?
As of January 1st, 2025, the Post Office is splitting off its group health plan from the rest of the federal government. The new group plan (PSHB) will cover USPS employees and retirees only and is under the umbrella of the Federal Employee Health Benefits (FEHB). This is the result of the Postal Service Reform Act of 2022 which was signed into law in April of 2022.
2. What if I want to keep my old insurance plan?
In most cases, this will be automatic. The USPS mailed out notices the week of November 4th letting participants know they’ll be “crosswalked” into the plan most similar to the one they had under the wider FEHB. And, in cases where there isn’t an equivalent option available, OPM will automatically enroll individuals into the Blue Cross Blue Shield Service Benefit Plan FEP Blue Focus, which is the most affordable, no-fee, non-high-deductible plan available in PSHB in 2025.
3. Will it cost more?
Not necessarily. Some plans cost more than their corresponding plans in 2024, and some cost less.
4. I got a letter from OPM showing that my cost doubled.
In some cases, the letter sent the week of November 4th shows the monthly cost, but refers to it as Your Premium (Per Pay Period), which makes it appear the cost has doubled. But, this is an error. You can visit the OPM page on PSHB Premiums to find your plan’s 2025 cost: https://www.opm.gov/healthcare-insurance/pshb/premiums/
5. How do I compare plans?
There is an easy-to-understand Plan Comparison Tool available at https://www.checkbook.org/pshb/. You can also compare plans at health-benefits.opm.gov., though this method is far less user-friendly, in this writer’s experience.
6. How can I see the comprehensive details of the new plans?
Details of the plans are available at https://www.opm.gov/healthcare-insurance/pshb/brochures. Plans can be downloaded or read at a brochure link provided here. It should be noted that these “brochures” aren’t what most would typically think of as a brochure. Instead, they’re huge documents, often numbering 150-200 pages, and including the nitty gritty of the plan details.
7. Can I get details of the plans by mail?
Yes, you can call the Office of Personnel Management (OPM) at 1-844-451-1261. OPM phone lines are open Monday through Friday 7:40 a.m. to 5:00 p.m. eastern time. If you have difficulty getting through, OPM advises trying to call early in the morning or late in the evening when the lines are less busy. But, as previously noted, plan details number in the hundreds of pages, so you’re probably better off calling your carrier and asking your specific plan questions there. You can find that number by searching your insurance company name and PSHB together, so you find a representative who understands the PSHB plans.
8. How do I change my plan or plan level?
Enrollment in the new PSHB plans is available at health-benefits.opm.gov. This online portal is for use by all current employees and retirees this Open Season (though it routes current employees to LiteBlue).
Retirees can call 844-451-1261 to make changes by phone, though there have been many reports of excessive hold times and hang ups, here. You can avoid wait times by sending your completed form https://www.opm.gov/forms/pdf_fill/opm2809.pdf to Office of Personnel Management, PSHB Program, Open Season Processing Center, P.O. Box 5001 Lawrence, KS 66046-0500.
Current employees can also enroll or change plan levels by phone this year at 877-477-3273 or by sending form https://www.opm.gov/forms/pdf_fill/sf2809.pdf.
9. How do I change my dependents?
In order to update dependents this year, according to reps on a USPS PSHB Webinar, active employees must call HRSSC at 877-477-3273. Retirees can change dependents on Form 2809 or presumably, by phone at 844-451-1261. Changes to dependents cannot be made online.
10. Do I have to take Medicare Part B when I qualify? Does my spouse?
If you are an annuitant as of January 1, 2025, and not currently participating in Medicare Part B, you ARE NOT required to enroll in Medicare Part B to continue your health insurance coverage in the new PSHB Program. Participation in Medicare Part B is voluntary. Your covered spouse and eligible family members will also not be required to enroll in Medicare Part B even if they are age 65 or older. As the USPS has been saying at their PSHB webinars, “Your spouse is ‘in the car’ with you.” If you take the car to Medicare Part B, your spouse must also, but if you don’t, they don’t need to, either.
However, if you’re retiring on January 1st, 2025 or later, and you haven’t turned 64 by January 1st, 2025, then you and your spouse (if covered by your plan) will need to enroll in Medicare Part B. But, please note: your spouse doesn’t need to enroll in Medicare Part B until their age 65 or your retirement, whichever is later.
Note: If you’re an annuitant as of January 1, 2025, and are already enrolled in Medicare Part B, you ARE required to remain enrolled in Medicare Part B to continue coverage under PSHB.
11. How can I ask questions about my personal situation?
Active employees can call the PSHB helpline at 833-712-7792 or email retirementbenefits@usps.gov with your questions. Whether you call or email, expect extended wait times to get your answer and do yourself a favor: start early.
Retirees can call OPM at 844-451-1261 or email postalretireehealthbenefits@opm.gov.
Or, if you can spare 1-2 hours, the USPS is holding PSHB webinars with live Q&A sessions, where knowledgeable reps answer attendees’ questions in real time every other Thursday until December 5th. To get information about these webinars, visit https://www.keepingposted.org/pshb-lunch-learn-seminars.htm.
Lacie Harmon is a Federal Benefits and Retirement Specialist who helps federal employees understand and maximize their benefits, both during employment and retirement years. She teaches regularly at federal agencies and offers monthly federal retirement webinars. Past classes taught include for clients such as the FAA, USDA and GAO, as well as union locals of the APWU and NALC. Web: https://www.lacieharmon.com | Facebook | Email: LHarmon@thefederalbenefitsgroup.com
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