PSHB and Medicare Part B for Postal Retirees
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Last updated
Last reviewed Oct 30, 2026
Start with the FEHB Open Season 2026 checklist for retirees (Nov 9 – Dec 14, 2026).
Short answer: Under the Postal Service Reform Act of 2022, certain Medicare-eligible Postal Service annuitants and their Medicare-eligible family members must enroll in Medicare Part B to stay in a PSHB plan[9]. If you don't enroll and no exception applies, you can't have PSHB in retirement, even if you sign up for Part B later[10].
Exceptions
OPM lists these exceptions[9]:
- Postal annuitants who retired on or before January 1, 2025 and are not already in Part B (and their family members).
- Postal employees who were 64 or older on January 1, 2025 (and their family members after the employee retires).
- Annuitants or family members living outside the United States and its territories (moving back may end this exception).
- Those eligible for or enrolled in certain VA health benefits.
- Those eligible for Indian Health Service care.
Family members
If your Medicare-eligible spouse doesn't enroll in Part B and has no exception, OPM says the spouse is not eligible for PSHB and will be dropped from your coverage[10].
Drug coverage
If you're eligible for Part D, your PSHB plan automatically enrolls you in its Medicare drug benefits. If you opt out and don't join another Part D plan, you have no drug coverage at all; you can re-enroll at Open Season or with a qualifying life event[10].
Open Season
PSHB is part of the FEHB Program and uses the same Open Season, Nov 9 – Dec 14, 2026; PSHB changes take effect January 1, 2027[1]. PSHB members compare plans in the Postal Service Health Benefits System (PSHBS)[1].
Don't cancel PSHB to join a spouse's plan: OPM says you won't be able to re-enroll[10].
More Open Season guides
- FEHB Open Season 2026 checklist for retirees
- How to compare prescriptions and doctors across plans
- The 5-year rule for keeping FEHB in retirement
- 2027 FEHB costs for retirees
- FEHB and Medicare Part B
- Self Plus One vs Self and Family
- Keeping FEHB for a surviving spouse
Frequently asked questions
Do USPS retirees have to take Medicare Part B?
Many do. Certain Medicare-eligible Postal annuitants and family members must enroll in Part B to keep PSHB, with exceptions such as those who retired on or before January 1, 2025 (OPM).
Can I enroll in Part B later and get PSHB back?
OPM says if you don't enroll and don't meet an exception, you won't have the option to enroll in PSHB even if you later enroll in Part B.
Sources
- OPM: 2026 Federal Benefits Open Season Highlights, Plan Year 2027 (PDF) (checked Oct 30, 2026)
- OPM: Postal Service Health Benefits (PSHB) Program (checked Oct 30, 2026)
- OPM: Medicare for PSHB annuitants (checked Oct 30, 2026)
Retiring within 5 years?
Retiring within 5 years? Book a free 20-minute Open Season review.
General information only, not a plan recommendation. Not affiliated with OPM or any government agency.