Eligible retired public safety officers (police, firefighters) may elect to exclude governmental retirement plan distributions that don't exceed their health or long-term care premiums, if the distributions are paid directly to insurers. The exclusion is limited to $3,000 per year. Any amount excluded isn't deductible as a medical expense for itemized deductions and isn’t includible as health insurance for the self-employed health insurance deduction. (Code Sec 402(l)(7)) 

SECURE 2.0 Act Section 328 repeals the direct payment requirement effective December 29, 2022. The retired employee will need to include an attestation in their return that the distribution does not exceed the amount the employee paid for qualified health insurance premiums for the year of the payment. (Sec 402(l)(5)(A)(ii))