Postal Service Health Plans – rates, what changed and when to use each plan

How to use our Health Insurance reporting to your benefit

The landscape of your health insurance continues to change in a way that adds additional costs directly to you which will impact your savings and your monthly budget. Our information is based on what we see as the most widely used plans. You may find that other plans exists both inside and outside of the federal health platform that you want to explore. Keep in mind what works best for you is not just about budget, but also based on where you life, availability of services in your area and the health/utilization of you/family members. Use this guide to help get your thoughts organized and make sure to confirm your final decisions after reviewing all plan specifications in the plan brochure available provided by each insurer.

Consider re-thinking your approach to health care

As the cost burden shifts toward you as the Federal Employee, you may find that researching and understanding how to use the HDHP plus the HSA/HRA can be a longer term solution to help you lower current costs, accumulate more wealth and tax advantage of a triple tax deduction.

The Short Version

Four things that define Open Season for 2027 1.  PSHB enrollees fared better than the rest of the federal workforce. The average enrollee share rises 8.2%, against 10.9% in FEHB, and the overall premium rises only 6.7%. Postal employees also have access to the cheapest nationwide options in either program. 2.  MHBP Standard rose 49.6% Self Only and 87% Self Plus One, and MHBP ended its PSHB Consumer Option. MHBP Value survives in PSHB even though it ends in FEHB, and at $83.22 it is now the cheapest nationwide plan available to postal employees. 3.  GEHA froze both of its PSHB premiums at 2026 levels and retired its PSHB High Option. Its HDHP funds a larger HSA than the FEHB version: $1,300 Self Only and $2,600 for two or more. 4.  Medicare Part B is the defining PSHB difference. Most Medicare-eligible annuitants and their family members must enroll in Part B to keep PSHB coverage. Employees who were 64 or older on January 1, 2025 are exempt for life; everyone younger should plan for the Part B premium as part of retirement income.

Benefit Changes for 2027

Item	What it means for postal employees
MHBP Consumer Option ends	PSHB enrollees who make no election are moved to MHBP Value, not MHBP Standard. Value is the cheaper landing spot, but its benefit design differs — confirm it still fits.
GEHA PSHB High Option retired	The only GEHA PSHB plan that paid a Medicare Part B reimbursement is gone. Medicare-eligible GEHA enrollees should compare the APWU and MHBP Medicare options.
UnitedHealthcare Choice Plus Primary Postal East ends	Enrollees must choose a new plan. The PSHB default is Blue Cross FEP Blue Focus, which is in-network only with an $11,000 out-of-pocket maximum.
Program size	PSHB runs 65 plan options from 17 carriers in 2027.
New family member documentation	Anyone adding a family member during Open Season must submit eligibility documentation under the FEHB Protection Act of 2025.
Anti-obesity drugs	All carriers must require documented participation in intensive behavioral therapy before and during treatment.
Enrollee portal	OPM launches a redesigned enrollee portal for Open Season, with qualifying life events handled separately from Open Season elections.
Benefit designs	PSHB cost sharing mirrors each carrier’s FEHB plan. 2027 brochures publish when Open Season opens on November 9 — confirm deductibles and copays there.

Quick Picks Based on your needs

If you are…	Consider…
Healthy, has savings, and wants to build wealth	GEHA HDHP
Want the lowest premium with out-of-network coverage	MHBP Value
Want low cost but cannot use an HSA	APWU Consumer Driven
Want full network access and fixed copays	GEHA Standard
Hate deductibles	Blue Cross Basic
Is approaching or on Medicare	APWU either option ($1,200), MHBP Standard MA ($900), Blue Cross Basic ($800)
Travel or live where networks are thin	Blue Cross Standard
Is in the MHBP Consumer Option	Defaults to MHBP Value — verify it fits before letting that happen
Is in UnitedHealthcare Choice Plus Primary Postal East	Must choose; the default is FEP Blue Focus with an $11,000 ceiling
Were 64 or older on January 1, 2025	Exempt from Part B for life — weigh plans without Part B reimbursement

The Medicare Part B Requirement

This is the biggest planning difference between PSHB and FEHB, and it belongs in every postal retirement conversation years before retirement.

• Medicare-eligible postal annuitants and their Medicare-eligible family members must enroll in Medicare Part B to keep PSHB coverage. FEHB has no such requirement.
• Five exemptions: annuitants who retired on or before January 1, 2025 and are not already in Part B; employees who were 64 or older on January 1, 2025; those living outside the United States and its territories; those eligible for or enrolled in certain VA health benefits; and those eligible for Indian Health Service care. Family members of an exempt annuitant are exempt as well.
• Part B costs $202.90 a month in 2026, and more at higher incomes. For a couple that is roughly $4,870 a year on top of the PSHB premium, which is why Part B reimbursement is worth more to a postal client than to any other federal employee.
• Prescription coverage moves automatically to the plan’s Medicare Part D EGWP at no additional premium, with a $35 monthly insulin cap and a $2,000 annual out-of-pocket cap. Opting out of the EGWP means losing PSHB drug coverage entirely while still paying the same premium.
• Planning point: an employee who is not exempt should model Part B into retirement income, and should weigh the reimbursements offered by APWU ($1,200), MHBP Standard’s Medicare Advantage option ($900), and Blue Cross Basic ($800) against plans that offer none.

When to Use Each Plan

GEHA HDHP — the value leader for postal employees

Use when: the employee has savings to cover a deductible, wants to build an HSA, and is not yet on Medicare.

• Premium frozen at 2026 levels, and GEHA deposits $1,300 Self Only or $2,600 for two or more — $300 and $600 more than the FEHB version of the same plan.
• That deposit cuts the effective deductible to about $500 and produces the lowest net premium ($907) and lowest worst year ($6,907) in the postal program.
• Only 5% coinsurance after the deductible.
• Not for anyone enrolled in Medicare, on TRICARE, or with recent VA care. Because most PSHB annuitants must take Part B, the HSA window generally closes at retirement.

APWU Consumer Driven — money up front instead of money saved

Use when: the employee wants a low premium but cannot use an HSA, or prefers the plan to pay first.

• The Personal Care Account pays the first $1,200 Self Only or $2,400 of claims in full, leaving a $1,000 or $2,000 net deductible.
• $6,500 out-of-pocket maximum and 15% coinsurance, with a $1,200 Medicare Part B reimbursement for Medicare-eligible annuitants.
• Rose only 10% for 2027, under the PSHB average.
• The account is plan-owned and forfeited on leaving. Requires APWU membership, about $35 a year for associate members.

MHBP Value — the cheapest nationwide postal plan

Use when: premium is the binding constraint and the employee uses little care.

• At $83.22 biweekly it is the lowest nationwide premium in PSHB, and unlike the other cheap options it covers out-of-network care.
• $600 deductible and a $6,600 out-of-pocket maximum — far better catastrophic protection than FEP Blue Focus at a similar price.
• Weak prescription coverage: brand-name drugs run 45% and non-preferred 75% under this plan’s design.
• It is also the automatic landing spot for MHBP Consumer Option enrollees who do nothing.

FEP Blue Focus — cheap premium, high ceiling

Use when: the employee is young and healthy, stays in network, and has savings to absorb a bad year.

• $10 copays for the first ten office visits, and $5 generics.
• The 2027 deductible rose to $1,000 and the out-of-pocket maximum to $11,000 Self Only — the highest ceiling in the postal program.
• In-network only except emergencies, with a $3,000 maternity facility copay.
• This is the default for enrollees in the terminating UnitedHealthcare postal plan, so some people will land here without choosing it.

GEHA Standard — the cheapest full-network plan

Use when: the employee wants out-of-network coverage and fixed copays at the lowest price that delivers both.

• Premium frozen at 2026 levels, which is a real gain against an 8.2% program average.
• $500 deductible, $35 primary care, $50 specialist, $10 generics, up to $250 in wellness rewards.
• For Medicare-eligible annuitants, GEHA waives coinsurance and copays on Medicare-covered services.
• The $8,000 out-of-pocket maximum is its weak point.

Blue Cross Basic — no deductible, strong Medicare pairing

Use when: the employee wants every cost to be a known copay, or is approaching Medicare.

• No deductible at any tier. $35 primary care and $50 specialist.
• Reimburses up to $800 a year of Medicare Part B, which is worth more in PSHB than in FEHB because Part B is mandatory for most annuitants.
• In-network only except emergencies, and the out-of-pocket maximum rose to $8,500 for 2027.

APWU High — predictability at a 33% higher price

Use when: the employee needs out-of-network access with fixed costs, or will use the Medicare Advantage option in retirement.

• $25 for any doctor, primary care or specialist, and a $6,500 out-of-pocket maximum — the lowest among the full-network postal plans.
• Its Medicare Advantage option reimburses $1,200 of Part B and waives the deductible.
• Up 33.4% for 2027, costing an active employee $931 more than last year. Compare against MHBP Value and GEHA Standard before renewing.

MHBP Standard — the plan to leave

Use when: rarely. A 49.6% increase removes most of the case for it.

• Self Only rose $45.69 biweekly and Self Plus One $183.96. The deductible rose to $500 and the out-of-pocket maximum to $8,000.
• Its remaining strengths are 10% coinsurance after the deductible and a Medicare Advantage option that reimburses $900 of Part B.
• A two-person household should price Self and Family ($372.83) against Self Plus One ($395.93) — the family rate is cheaper here.

Blue Cross Standard — broadest access, highest price

Use when: the employee travels, lives where networks are thin, or wants the largest provider network available.

• Only a 3.3% increase for 2027, the smallest of any plan that rose, but it starts from the highest base at $196.30 biweekly.
• $30 primary care, $40 specialist, $450 per hospital admission, and full out-of-network coverage.
• No Part B reimbursement, though Part B enrollment waives the deductible and zeroes out office visits.

Notes

• Premiums are the enrollee share for active postal employees from OPM’s published 2027 PSHB rate tables. Postal annuitant rates and the USPS employer contribution differ, and non-career employees and some collective bargaining agreements differ again.
• PSHB cost sharing other than premiums mirrors each carrier’s FEHB plan design. The 2027 PSHB brochures publish November 9 and are the governing documents.
• MHBP Value PSHB cost sharing is carried from that plan’s most recent published design and has not been confirmed against a 2027 brochure.
• Medicare Part B reimbursement amounts come from OPM’s published Medicare cost savings data for the postal program and should be re-confirmed for 2027 in the plan brochures.
• APWU Health Plan requires APWU membership, about $35 a year for associate members.
• Figures are illustrative models for planning, not quotes, and nothing here is individualized insurance advice.

All attempts have been made to provide the most accurate information that summarizes the rules, regulations, laws and taxes that may affect your retirement and your federal benefits.  Our articles are intended to provide simple and concise overviews of the selected topic so that you can find the most relevant information for your specific needs.  For complete detailed explanations of each topic we encourage you to visit www.opm.gov.  FERS101 does not provide tax, legal, insurance or investment advice and all individuals are encouraged to consult with qualified professional with regard to their personal situation. FERS101 is not affiliated with the U.S. Government or any governmental agency. The information provided is not approved, produced or endorsed by the U.S. Government.