Use myVRS to Apply for Health Insurance Credit, Update Premium Info
If you retired with at least 15 years of service from a participating employer, the health insurance credit is a tax-free reimbursement (as directed by the IRS) to assist with the cost of your health insurance premiums. The credit is a dollar amount set by the General Assembly for each year of service and is added to your monthly retirement benefit. The credit ends upon your death and cannot exceed the amount of your individual health insurance premium.
Applying for the Health Insurance Credit
If VRS is already deducting your health insurance premium from your retirement benefit, you do not need to apply for the health insurance credit. The premium amount appears on your Benefit Payment Summary page in myVRS.
If VRS is not deducting your health insurance premium or if you have eligible health insurance coverage in addition to coverage that VRS is already deducting, log in to myVRS to claim your credit and ensure you receive the maximum amount.
Keeping your information current ensures you receive the proper credit amount and are not at risk for receiving an overpayment, which would require you to reimburse VRS.
Qualifying health plans:
- Individual health plans.
- Coverage as a dependent on a spouse’s plan.
- Employer-sponsored health plans, including the State Retiree Health Benefits Program.
- Medicare Part B.
- Dental and vision plans.
- Prescription drug plans, including Medicare Part D.
- Long-term care insurance contracts.
- Long-term disability insurance.
- Hospital or accident indemnity policies.
- Supplemental policies for cancer or other specific illnesses.
- Medical discount programs.
Some plans, such as health care sharing ministries or cooperatives, are not eligible for the health insurance credit.
Report Health Insurance Coverage Changes
Report the following coverage changes to VRS by logging in to myVRS:
- Change in your health insurance plan.
- Increase or decrease in your health insurance premium.
- Cancellation of your health insurance.
Alternatively, you may complete and send the Request for Health Insurance Credit (VRS-45)to VRS.
If your health insurance premiums are deducted from your retirement benefit, you do not need to notify VRS of a premium increase unless you are not already claiming your maximum credit amount and have other coverage you would like to add.
