If you're considering switching from the Federal Employees Health Benefits (FEHB) program to the Philippine Health Insurance Corporation (PHIC) or the Philippine Health System (PSHB), you might be wondering if it will cost more. The answer depends on several factors, including your age, health status, and the type of coverage you choose.
For example, if you're under 40, you'll pay a lower premium for PSHB, but if you're over 60, you'll pay more.
One thing to consider is that PSHB has a more comprehensive coverage, including dental and vision care, which might be a significant cost savings for some people.
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Potential Impact of Postal Reform Legislation
The potential impact of postal reform legislation on the cost of Postal Service Health Benefits (PSHB) plans is a topic of concern for many postal employees and retirees.
The Postal Service Reform Act of 2021, H.R. 3076 and S. 1720, aims to save the U.S. Postal Service billions of dollars over the next decade, but it could inadvertently cause PSHB premiums to rise.
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Current postal employees would be required to enroll in a new PSHB plan and also enroll in Medicare when they turn 65.
The legislation would end the 2006 mandate requiring the Postal Service to prefund billions of dollars of future retiree health benefits, payments that USPS has been unable to make fully.
This could lead to an increase in the average cost of coverage for FEHB plans, which could then lead to an increase in FEHB premiums for all participants.
Retirees without Medicare tend to cost more to insure, as older individuals use more health care, on average, than younger ones.
The new PSHB program would create separate health plans for postal employees and retirees, parallel to current FEHB plans and required to be “actuarially equivalent.”
Here's a summary of the potential impact on PSHB premiums:
The Office of Personnel Management (OPM) would administer the PSHB program, and lawmakers are urged to amend the bill and consider feedback and analysis from OPM.
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