The health insurance credit provides you with a reimbursement 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. It ends upon your death and cannot exceed the amount of your individual health insurance premium.
Eligibility Requirements
- Retiring with 15 or more years of service credit from an eligible employer; or
- Retiring on disability; or
- Receiving a long-term disability benefit through the Virginia Sickness and Disability Program (VSDP) or the Virginia Local Disability Program VLDP) if your employer participates in the health insurance credit.
Note: If you have at least 15 years of service as a teacher, school administrator, school board employee or state employee, and retire from a political subdivision that does not offer the health insurance credit, you are eligible for the health insurance credit based on your years of service.
Qualifying Health Plans
- Individual health plans.
- Coverage as a dependent on a spouse’s plan.
- Employer-sponsored health plans, including the Commonwealth of Virginia 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.
The following are examples of plans not eligible for the health insurance credit:
- Health care sharing ministries or cooperatives.
- Direct primary care arrangements such as concierge medicine.
- Life insurance.
Applying for the Health Insurance Credit
If VRS is deducting your health insurance premium from your benefit, you do not need to apply for the health insurance credit. If VRS is not deducting your health insurance premium or you have eligible health insurance coverage in addition to your employer-sponsored coverage, register or log into your myVRS account to manage your health insurance credit online, or complete and send the Request for Health Insurance Credit VRS-45 to VRS. The credit will be added to your monthly retirement benefit. If you do not receive a monthly benefit, you will receive a check from VRS for the reimbursable amount.
Watch the Presentation
Completing the VRS-45: A Tutorial
Get step-by-step instructions on how to complete your request for the health insurance credit.
If you are on long-term disability through the Virginia Sickness and Disability Program (VSDP), obtain the form from Reed Group, the VSDP third-party administrator. The credit will be added to your long-term disability benefit.
Reed Group, 1-877-928-7021
Report Health Insurance Coverage Changes
Report the following coverage changes to VRS by logging in to myVRS or completing a new Request for Health Insurance Credit VRS-45 :
- Change in your health insurance plan.
- Increase or decrease in your health insurance premium.
- Cancellation of your health insurance.
If your health insurance premiums are deducted from your retirement benefit, you do not need to notify VRS of a premium increase.
If you are on long-term disability through the Virginia Sickness and Disability Program or the Virginia Local Disability Program, obtain the health insurance credit form from Reed Group, the VSDP third-party administrator. The form should be returned to Reed Group.
For more information, call Reed Group at 1-877-928-7021.