Enrollment Begins In The New PSHB Program

The Postal Service Reform Act, enacted on April 6, 2022, directed the Office of Personnel Management (OPM) to create a health insurance program specifically tailored for USPS employees and retirees. Before this legislation, a 2006 requirement obligated USPS to pre-fund retiree health benefits, a costly mandate that created financial strain.

New PSHB Program Begins in 2025

Starting in 2025, the new Postal Service Health Benefits (PSHB) program will be launched as a distinct part of the Federal Employees Health Benefits (FEHB) system. Overseen by OPM, PSHB will replace FEHB coverage for eligible USPS employees, retirees, and their dependents. This means that from January 1, 2025, postal employees and retirees will no longer be able to keep their existing FEHB plans. However, there is positive news—the National Active and Retired Federal Employees Association (NARFE) indicates that the new program is expected to reduce average premium costs for both PSHB and FEHB members.

Mandatory Enrollment During Open Season

Enrollment in the PSHB program is required for USPS employees and retirees during the upcoming Open Season, from November 11 to December 9, 2024. Open Season is the designated period when all federal employees can choose their health coverage for the following year. If a current FEHB participant eligible for PSHB doesn’t select a new plan during this period, they will be automatically enrolled in a comparable plan from their current provider. If such a plan isn’t available, they will be placed in the lowest-cost nationwide plan.

PSHB Rates and Coverage Options

The PSHB program will offer plans from reputable providers like Blue Cross Blue Shield, Kaiser Permanente, and Aetna. While many plans will operate as Health Maintenance Organizations (HMOs), some will be available nationwide, while others will cater to specific regions. Most enrollees will find options similar to their current coverage. Current PSHB rates and coverage details are now available for review.

Importantly, enrolling in a PSHB plan will not affect participation in other federal benefits programs, including:

• Federal Employees Dental and Vision Insurance Program (FEDVIP)
• Federal Flexible Spending Account Program (FSAFEDS)
• Federal Employees’ Group Life Insurance (FEGLI)
• Federal Long Term Care Insurance Program (FLTCIP)

For more details, fact sheets for active USPS employees and retirees are accessible on the USPS website.