What is the FRS Health Insurance Subsidy?
The Health Insurance Subsidy (HIS) is a monthly benefit paid by the Florida Retirement System on top of your FRS pension to help offset the cost of health insurance in retirement. It is a separate benefit, not part of your pension calculation, and is funded through a separate FRS employer contribution rate. You receive HIS in addition to your monthly pension once you have applied and been approved. It is sometimes searched for as the "State of Florida health insurance subsidy" or "Florida retirement health insurance subsidy" — these all refer to the same FRS HIS benefit governed by section 112.363, Florida Statutes.
Is the HIS health insurance, or a cash payment?
The HIS is a cash subsidy, not a health insurance plan. It does not enroll you in coverage and it does not pay a provider directly. Instead, a fixed dollar amount is added to your monthly FRS pension payment to help you pay premiums on coverage you already carry. Because it is a cash benefit tied to your years of service rather than to the cost of any particular plan, the amount does not change based on which insurance you choose.
Am I eligible for the HIS?
You must be receiving a monthly FRS Pension Plan benefit, you must have health insurance coverage (any qualifying plan — employer-sponsored, a spouse's plan, the marketplace, or Medicare), and you must apply separately. Coverage must be certified in writing before payment begins, per section 112.363(2)(d), Florida Statutes. HIS is not automatic and is not paid during DROP participation; payments begin after you complete DROP and leave employment. You are not eligible if you receive health insurance at no cost through the State of Florida under section 110.1232, Florida Statutes.
How much is the FRS Health Insurance Subsidy?
HIS pays $7.50 per month for each year of creditable service, with a $45/month minimum (6 years of service) and a $225/month maximum (30 or more years of service). These figures took effect July 1, 2023 under section 112.363(3)(f), Florida Statutes; the prior range was $30 to $150 per month. For example: 10 years of service is $75/month, 15 years is $112.50/month, 20 years is $150/month, 25 years is $187.50/month, and 30 or more years is $225/month. Time spent in DROP does not count as additional creditable service for HIS purposes — your HIS amount is locked at the years of service you had when DROP began.
Does the HIS amount go up over time?
No. The HIS is a flat $7.50 per year of service and does not receive an annual cost-of-living adjustment (COLA) the way the FRS pension can. The dollar rate is set in statute and changes only when the Legislature amends it — as it did on July 1, 2023, when the per-year rate rose and the cap moved from $150 to $225. Between statutory changes, your HIS amount stays the same.
How do I apply for the HIS (Form HIS-1)?
Submit Form HIS-1, available at FRS.MyFlorida.com or in your Retiree Packet, along with proof of health insurance coverage to the Division of Retirement. If you submit the form within 6 months of your effective retirement date, retroactive payments are paid back to that date. After 6 months, retroactive payments are limited to a maximum of 6 months. Many retirees miss out on HIS simply because they do not realize it is a separate application — completing Form HIS-1 promptly avoids leaving money on the table.
Is the FRS Health Insurance Subsidy taxable?
HIS payments are generally taxable income. They may be partially or fully excludable if your health insurance premiums are deducted directly from your FRS pension payroll. Public safety officers retiring under normal retirement rules may also qualify for the Pension Protection Act (PPA) federal tax exclusion of up to $3,000 per year on insurance premiums paid directly from the pension. Tax treatment depends on your situation; consult IRS guidance and a tax professional for specifics.
Is the HIS guaranteed?
No. HIS is funded through a separate FRS employer contribution rate and is subject to annual legislative appropriation. Section 112.363(5), Florida Statutes, states that if funding fails to provide full benefits for all participants, the benefits may be reduced or canceled at any time. In practice the subsidy has been paid consistently, but it does not carry the same statutory guarantee as the core pension benefit, which is why projections treat it as a separate, conditional line.