The Postal Service Reform Act, which was signed into law on April 6, 2022, mandated that OPM set up a health insurance program specifically for USPS workers and retirees. Prior to this new legislation, a 2006 mandate required the USPS to pre-fund its retiree health benefits, which proved to be a financial burden.
New PSHB Program
Launching 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 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 During Open Season Is Mandatory
USPS workers and retirees must enroll in PSHB during the upcoming Open Season November 11, 2024, through December 9, 2024. Open Season is when all federal employees can elect their healthcare coverage for the following year. If an eligible FEHB participant hasn’t selected a new PSHB plan during Open Season, they will automatically be enrolled in an equivalent plan offered by their current health provider. If one is not available, they will be enrolled in the lowest-cost nationwide plan.
PSHB Rates & Coverage
Providers under the new PSHB system 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. Most enrollees will be able to choose a new plan that’s similar to their current coverage. PSHB rates and coverage are currently available for review.
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.
