When President Biden signed the Postal Service Reform Act on April 6, 2022, it required the Office of Personnel Management (OPM) to create a new health insurance program specifically for USPS employees and retirees. This law also removed the 2006 mandate that required the USPS to pre-fund retiree health benefits, which had been a financial strain.
Launching in 2025, the Postal Service Health Benefits (PSHB) program will be a new, independent option within the Federal Employees Health Benefits (FEHB) program. PSHB plans will replace the existing FEHB coverage for USPS employees, retirees, and their eligible family members.
Starting January 1, 2025, USPS employees and retirees will no longer be able to stay in their current FEHB plans. However, the National Active and Retired Federal Employees Association (NARFE) has indicated that the new PSHB program is expected to lower average premium costs for both PSHB and FEHB participants.
USPS employees and retirees must enroll in a PSHB plan during the upcoming Open Season, which runs from November 11, 2024, to December 9, 2024. Open Season is the time when federal employees can adjust their healthcare plans for the upcoming year. If no new PSHB plan is selected by then, OPM will automatically enroll participants in the least expensive no-fee, non-high-deductible option available.
Currently, 32 plans have received conditional approval for the PSHB program. These include well-known providers such as Blue Cross Blue Shield, Kaiser Permanente, and Aetna. Most plans are HMOs, with some available nationwide and others regionally. In many cases, PSHB participants will be able to choose a plan similar to their current FEHB coverage. Rates and coverage details for PSHB will be released in September 2024.
It’s important to remember that enrollment in a PSHB plan won’t affect participation in other federal programs, such as:
- 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)
Head to the USPS website to download PSHB fact sheets for current Postal employees and Postal annuitants (retirees).
