It does appear that they should have issued a 1099-MISC rather than 1099-NEC.
File Form 1099-MISC for each person you have given the following types of payments to during the tax year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in the following:
- Rents
- Prizes and awards
- Other income payments
- Cash from a notional principal contract to an individual, a partnership, or an estate
- Any fishing boat proceeds
- Medical and health care payments
- Crop insurance proceeds
- Payments to an attorney
- Section 409A deferrals
- Nonqualified deferred compensation
Use a 1099-NEC form to report nonemployee compensation. Nonemployee compensation includes the following payment types to independent contractors:
- Fees
- Commissions
- Prizes
- Awards
- Other forms of compensation for services
Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is typically excluded from taxable income.
I'm not sure if this also applies to retired workers. I do note that box 6 on the 1099-MISC is for amounts of medical and health care payments, so having the 1099-misc (not 1099-nec) makes a difference in how that income is reported and treated on your tax return.
Answers are correct to the best of my ability but do not constitute legal or tax advice.
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