2025 PSHB Premiums Announced – FedSmith.com

The Office of Personnel Management (OPM) announced the annual premiums for the first year of the new Postal Service Health Benefits (PSHB) program.

The total average increase in member contributions to PSHB premiums in 2025 will be 11.1%. The combined average growth rate for current Postal Service employees and pensioners enrolled in plans under the FEHB program will be 6.9%.

OPM said the postal program premium increases are lower than the 2025 FEHB premium increases. He said this was due to the increased integration into Medicare required under the policy. Postal Reform Actdifferences in the cost profile of plans offered in each program, and demographic factors.

All PSHB premiums for 2025 are: OPM website. There is also. web page Specializes in information about PSHB programs that assist enrollees.

In PSHB 2025, 30 health insurers will offer 69 plan options, a combination of seven fee-paying insurers and 23 health maintenance organizations. Service areas range from nationwide to specific regions, and all have experience providing insurance to members through the FEHB program.

All current Postal Service employees, pensioners, and their families enrolled in a FEHB plan will be mapped to an equivalent PSHB plan prior to open season. During the open season, enrollees can keep the mapped plan or choose a different plan.

Provided by OPM Information about automatic registration in PSHB based on current FEHB registration. Automatic enrollment ensures that enrollees will not remain without coverage even if they take no action during the open season of the upcoming transition period.

OPM will send a personalized letter to all Postal Service enrollees informing them of the PSHB plans they will be automatically enrolled in and explaining how to select a new plan during the open season if they wish.

All PSHB benefits in 2025 are required to be the same as FEHB benefits, with the exception of prescription drug benefits. PSHB carriers are required to offer the Medicare Prescription Drug Plan Employer Group Waiver Plan (EGWP) to postal pensioners and their covered family members. Additionally, some airlines offer Medicare Advantage prescription drug EGWP.

With the exception of current postal pensioners and other limited exceptions, Medicare-eligible postal pensioners and their families must enroll in Medicare Part B to receive PSHB benefits.

Many PSHB plans offer cost savings to enrollees who also enroll in Medicare. OPM is guide This is a comparison of the benefits of PSHB plans with and without Medicare.

OPM expects more than 28,000 postal pensioners to enroll in Medicare Part B during the 2024 Special Enrollment Period (SEP) and that number will increase by the Sept. 30 deadline. He said there was. Overall, about 75% of Medicare-eligible postal pensioners are currently enrolled in Part B, and in response to the SEP, he said OPM expects more than 80% will enroll. .

What is the Postal Service Health Benefits (PSHB) program?

OPM is Postal Reform Act Establishes the Postal Service Health Benefits Program within the Federal Employees Health Benefits Program, allowing OPM to contract with carriers to provide health benefit plans to USPS employees and retirees.

The PSHB program includes health benefit plans available only to Postal Service (USPS) employees, Postal Service retirees (pensioners), and their eligible family members.

Eligibility for enrollment or coverage in the Federal Employee Health Benefits (FEHB) program ends on December 31, 2024, so starting January 1, 2025, these individuals will no longer receive federal health benefits from the PSHB program. must be received.

Additionally, with limited exceptions, USPS pensioners and their Medicare-eligible family members who retire after December 31, 2024 and become Medicare-eligible will enroll in Medicare Part B as a condition of eligibility to enroll in the PSHB. Must be. program. This requirement to enroll in Medicare Part B is the main eligibility difference between the PSHB plan and her FEHB plan.

Establishing a PSHB program is expensive.

of Postal Reform Act Provided OPM with $70.5 million to cover start-up costs to set up the PSHB program. OPM said it plans to use the funds to fund activities such as hiring new support personnel, updating existing financial management and retirement systems, and issuing new regulations.

However, OPM did not believe $70 million was enough and asked Congress for an additional $37.7 million. Budget request for fiscal year 2024 to cover initial costs. Most of that funding will be used “to support ongoing operations and maintenance costs not otherwise earmarked for implementation activities that begin in fiscal year 2023 and continue in fiscal year 2024,” with $9.5 million “to support demand It will be used to respond to the sudden increase in Customer support. ”