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United Healthcare Not Eligible For Retiree HELPS Act

Recently, the City of Austin Police Retirement System mailed Retiree members a form asking them to elect the $3,000 tax exemption on Health Care Cost which was to be deducted from your Adjusted Gross Income under qualified circumstances. Unfortunately, the IRS has deemed that self insured health insurance plans are not eligible for this tax credit. APRS recently learned from the City of Austin that the United Healthcare medical plan is not qualified for the tax exemption do to its self insured status. This means that UHC medical premiums will not be taken from pre-tax dollars. This IRS ruling is currently under appeal. However, if Retirees have one of the two dental plans offered by the City of Austin, those premiums still qualify for this health care cost tax exemption. APRS will continue to monitor this IRS ruling and appeal and will notify its membership of any changes. Any questions regarding this can be directed to Stephanie Willie, Assistant Pension Administrator or Michelle Waller, Benefit Services Specialist at (512) 416-7672.

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