Understanding Federal Employee Health Benefits (FEHB) & Postal Service Health Benefits (PSHB) Programs

Federal Employee Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs are essential to ensuring that federal employees, retirees, and their families receive comprehensive health coverage. Understanding the nuances of these programs and how they interact with Medicare is crucial for making informed decisions about your health care.

What is the Federal Employee Health Benefits (FEHB) Program?

The FEHB program provides health insurance to federal employees, retirees, and their families. Managed by the Office of Personnel Management (OPM), FEHB offers a variety of plan options, including Health Maintenance Organizations (HMOs) and Fee-for-Service (FFS) plans. These plans cover current and retired federal employees, ensuring they receive necessary medical care and support throughout their careers and into retirement.

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

The PSHB program, specifically designed for Postal Service employees and retirees, is a subset of the FEHB program. It provides similar health benefits and coverage options but is tailored to meet the unique needs of postal workers. The PSHB program is set to begin its coverage on January 1, 2025, with the plan selection period starting on November 11, 2024.

How Does FEHB Coordinate with Medicare?

As a federal employee or retiree, you may wonder how your FEHB plan works alongside Medicare. The FEHB program coordinates with Medicare to ensure that your health care costs are covered as you transition into retirement. Generally, if you are still employed, FEHB remains your primary insurance, with Medicare serving as a secondary payer if you choose to enroll.

Upon retirement, you have several options:

1. Keep FEHB and decline Medicare: FEHB continues as your primary coverage, though you may want to consider enrolling in Medicare Part A for additional benefits.
2. Keep FEHB and enroll in Medicare: Both insurances work together to cover your health costs, but this will require paying premiums for both FEHB and Medicare Part B.
3. Disenroll from FEHB and rely solely on Medicare: While this option reduces your monthly premiums, it may limit your coverage options and ability to reenroll in FEHB later.

Important Considerations for PSHB and Medicare Enrollment

For postal service employees under the PSHB program, the interaction with Medicare is slightly different. Active employees and certain annuitants are required to enroll in Medicare Part B to maintain their PSHB coverage. Failing to enroll may result in the loss of PSHB eligibility, with no possibility of reinstatement. Therefore, it is essential to understand your obligations and act accordingly to ensure continuous health coverage.

For further assistance, federal employees and retirees can contact the Office of Personnel Management (OPM), while postal service employees can reach out to USPS or their State Health Insurance Assistance Program (SHIP) for personalized advice on coordinating FEHB, PSHB, and Medicare benefits.

These programs offer various benefits and require careful consideration to optimize your healthcare coverage during and after your federal service.