Upcoming Changes to Postal Worker Insurance
Upcoming Changes to Postal Worker Insurance
Written by Chalen Jackson
In 2022, the Postal Service Retirement Act made a number of big changes to how USPS employees and retirees receive benefits. It establishes the Postal Service Health Benefits Program (PSHB), a group of plans offered through the Office of Personnel Management separate from Federal Employee Health Benefit (FEHB) plans. These plans will become the only benefit options available to Postal employees, retirees, and their families. Members that do not elect a new PSHB plan during Open Season 2024 will be automatically assigned a plan for 2025 plan year.
From April 1 to September 30, 2024 –
Postal retirees and their families that have not yet elected Medicare Part B may do so without penalty.
Among the biggest changes is a new requirement that members of the Postal Service that are age 64 or younger AFTER January 1, 2025 will be required to enroll in Medicare Part B when they become eligible for Medicare to maintain eligibility for PSHB. Older annuitants or those already retired may continue to defer part B but may see limited plan options if they do not elect part B, as OPM makes a bigger push for Medicare-integrated plans.
Special Election for Postal Workers to Avoid a Part B Penalty
So, what are Postal retirees who delayed part B to do? They have not elected coverage due to having these retiree benefits, but now face late enrollment penalties if they were to pick it up at this time. That’s where Uncle Sam stepped in with a gift to these retirees. From April 1 to September 30, 2024, Postal retirees and their families that have not yet elected Medicare Part B may do so without penalty. This one time SEP will allow many retirees to pick up Medicare and access a better benefits package within the new PSHB framework.
Agent Opportunity
Agents should be aware that clients may have questions about this. Oftentimes agents may think a client with FEHB or PSHB is not someone they can work with. This is not always the case. In some cases, a federal or postal retiree may pause their retiree benefits to enroll in a Medicare Advantage plan. However, if they would like to enroll in a Medicare supplement, they may need to cancel their retiree plan, and may lose access to those benefits forever. Exercise caution when working with federal retirees.
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