The only exclusion for a PSO that I know of, is if health insurance was paid from a pension received and reported on a 1099-R. The 1099-R interview will ask if you are a PSO and allow up to $3,000 of the insurance paid to be excluded from the taxable pension income.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**