FEHB Open Season Final Week Reminder: Last Chance to Review Your 2025 Health Plan Options

With just one week left in the 2025 Federal Employees Health Benefits (FEHB) Open Season, now is the time to make any final adjustments to your health coverage for the coming year. Open Season ends on Monday, December 9, 2024, so use this last week to ensure your plan fits your needs and budget. This year’s Open Season brings important changes, including premium increases, the introduction of the new Postal Service Health Benefits (PSHB) Program, updated options for dental and vision coverage through FEDVIP, and more. Here’s everything you need to know.

Key Updates for 2025
FEHB Premium Increases
• Average Premium Increase: FEHB premiums are rising by an average of 11.2% for 2025, with federal employees and retirees paying about 13.5% more toward their premiums.
• Historical Context: FEHB premiums increased by 7.7% in 2024 and 8.7% in 2023, making this year’s rise one of the highest in recent years.
• Action Required: With these increases, it’s important to review your plan’s premiums, deductibles, and out-of-pocket costs to ensure your current or new plan is still affordable.

PSHB Premium Increase
• New Program for USPS Employees: Starting in 2025, eligible USPS employees, annuitants, and their families will be covered under the Postal Service Health Benefits (PSHB) Program.
• Average Premium Increase: PSHB premiums are set to increase by an overall average of 6.9%, which is lower than the FEHB increase.
• Automatic Enrollment: Over 90% of USPS members will be automatically enrolled in a PSHB plan similar to their current FEHB coverage. USPS employees can use the Postal Service Health Benefits System (PSHBS) online portal to review their options and make changes if necessary.

Fewer FEHB Plan Options
• Available Choices: The FEHB Program includes 42 carriers offering 64 plans and a total of 130 plan options for 2025, a decrease from 157 in 2024.
• Importance of Review: Fewer options mean it’s essential to review available plans to ensure they meet your healthcare needs.

Dental and Vision Coverage Through FEDVIP
• Available FEDVIP Options: For 2025, the Federal Employees Dental and Vision Insurance Program (FEDVIP) includes 14 dental plan options and 10 vision plan options.
• Review Your Plan: While FEDVIP options remain stable, it’s still wise to confirm that your current dental and vision plans continue to meet your needs.

FSAFEDS Contribution Limits for 2025
• Health Care FSA Limit: The 2025 contribution limit for Health Care FSAs is $3,050.
• Dependent Care FSA Limit: The Dependent Care FSA contribution limit remains $5,000 for individuals and married couples filing jointly.
• Annual Reenrollment: Remember that you must reenroll in the Federal Flexible Spending Account Program (FSAFEDS) each year. FSAs offer a tax-advantaged way to budget for medical and dependent care expenses, reducing your taxable income.

Cost Drivers for 2025 and Considerations for Retirees
This year’s premium increases are driven by higher provider and supplier costs, increased use of specialty medications and prescription drugs, more outpatient services, and growing behavioral health care spending.

If you’re retired or approaching Medicare eligibility, consider how your FEHB plan coordinates with Medicare coverage. Some FEHB plans offer enhanced benefits when paired with Medicare, so it’s worth comparing options to optimize both coverage and cost.

Important Reminders for the Final Week
Use Comparison Tools
• FEHB Plan Comparison: The online FEHB comparison tool lets you evaluate premiums, benefits, and out-of-pocket costs across multiple plans.
• PSHBS for USPS Employees: USPS employees enrolling in PSHB can use the PSHBS portal for plan information and access the decision support tool designed to help with PSHB enrollment.

Review Your Current Plan for 2025 Changes
• Plan Updates: Even if you’re satisfied with your current plan, review any changes to coverage, provider networks, or costs for 2025. Plans may update their benefits, in-network providers, or prescription coverage each year, so it’s worth confirming that your existing plan still meets your needs.

Assess Your Health and Anticipated Needs
• Health Changes: Consider any changes in your health or upcoming medical needs for 2025.
• Life Events: Major life events, such as marriage, childbirth, or retirement, may impact your health coverage needs.

Evaluate Total Costs Beyond Premiums
• Deductibles and Out-of-Pocket Maximums: Look beyond premiums to assess deductibles, copayments, coinsurance, and out-of-pocket maximums.
• Balancing Cost and Coverage: A higher-premium plan may save you money if it provides more comprehensive coverage for your anticipated healthcare needs.

Check Provider Networks
• Preferred Providers: Confirm that your preferred doctors, specialists, and hospitals remain in-network to avoid out-of-network charges.
• Annual Network Changes: Networks can change each year, so it’s essential to verify your provider’s status during Open Season.

Take Advantage of Wellness Programs
• Wellness Incentives: Many FEHB plans offer incentives like gym membership discounts, smoking cessation support, or rewards for preventive care.
• Health Support: Using these programs can contribute to better health outcomes and potentially reduce long-term healthcare expenses.

Special Considerations for USPS Employees
• Automatic Enrollment: USPS members who are eligible for PSHB will be automatically enrolled in a PSHB plan that most closely resembles their current FEHB coverage. However, it’s crucial to review the new plan’s specifics to understand any differences in coverage or costs.
• PSHBS Portal: USPS employees should use the Postal Service Health Benefits System (PSHBS) for comparisons and enrollment adjustments, ensuring they select the best option for their needs.

Automatic Continuation for Current Enrollees
If you’re satisfied with your current plan and take no action, your FEHB coverage will automatically continue in 2025. However, with premium increases and plan adjustments, it’s wise to review your options to confirm your plan remains the best fit.

Final Reminder: December 9 Deadline
The Open Season deadline of Monday, December 9, 2024, is fast approaching. Use this final week to review, compare, and make informed decisions about your health coverage for 2025. Taking time now can prevent unexpected costs and ensure you have the healthcare resources you need in the coming year.

Choosing the right health plan is essential for both your health and financial well-being. With notable changes in premiums, plan options, and the debut of the PSHB Program, this is an important year to carefully evaluate your health coverage. Make the most of this last week of Open Season to ensure your plan is ready to support you in 2025.