FRS Health Insurance Subsidy: Amount, Eligibility, and How to Apply

How Much HIS Pays

The Health Insurance Subsidy pays $7.50 per month for each year of creditable FRS service. The minimum monthly payment is $45 (based on 6 years of Tier I service). The maximum is $225 per month, capped at 30 years of service.

These rates took effect with Senate Bill 7024 on July 1, 2023. Before that, the multiplier was $5.00 per year of service with a maximum of $150 per month. If you're reading older materials that cite $5.00 or $150, those figures are outdated.

A member with 25 years of service receives $187.50 per month ($7.50 × 25). Over a year, that's $2,250 toward health insurance premiums. It won't cover a full premium on its own, but it reduces the monthly out-of-pocket cost meaningfully.

Who Qualifies

HIS is available to FRS retirees who meet all three conditions:

1. You must be receiving a monthly retirement benefit from the FRS Pension Plan, or you must be a terminated Investment Plan member who has reached Pension Plan normal retirement age.
2. You must carry active health insurance coverage — employer group plan, individual policy, Medicare Part A or Part B, TRICARE, or Medicare Advantage all qualify.
3. You must submit the application with proof of that coverage.

HIS is not limited to employer-sponsored insurance. If you buy an individual health policy on the marketplace or enroll in Medicare, you still qualify for the subsidy.

How to Apply

Pension Plan retirees: After the Division of Retirement processes your first monthly pension payment, they mail a Retiree Packet containing Form HIS-1. Complete Section A with your information. Have your former employer's HR office (or People First, for state employees) certify Section B confirming your health coverage. If you've already transitioned to private insurance or Medicare, have the insurance carrier complete Section C instead. Return the completed form to the Division.

Investment Plan retirees: File Form HIS-IP and Form HIS-IP-2 with the Division of Retirement after you've terminated employment and reached Pension Plan normal retirement age. The same health coverage certification rules apply.

Retroactive Payments

HIS payments are retroactive up to six calendar months before the month the Division receives your completed application. The retroactive window doesn't extend earlier than your effective retirement date.

This means delays in filing cost you money — but not permanently, as long as you file within six months of retirement. If you retire in January and submit Form HIS-1 in April, you receive retroactive HIS payments back to January. If you wait until August, you only get six months of back pay (February through July), and January's payment is lost.

HIS and Your Total Retirement Income

HIS is a supplemental monthly benefit and is taxable income. You may exclude the lesser of your annual HIS payments or qualifying health insurance premiums deducted from your FRS benefit or certified to the Division by your former FRS employer. The Division reflects any qualifying exclusion on Form 1099-R. Florida has no state income tax.

The monthly amount is based on creditable service at the current $7.50 rate, which has no automatic annual inflation adjustment. Eligibility also depends on qualifying health insurance coverage.

For a step-by-step walkthrough of the HIS application alongside your broader retirement paperwork, the Florida FRS Retirement Guide covers the full sequence from first payment to HIS certification.

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