18.3 Tax Treatment of Premiums and Benefits
For the most part, taxes on health insurance premiums and benefits depend on the individual type of insurance that is purchased. Keep in mind that money is taxed only once. If a person pays taxes on his/her premiums, then they do not have to pay taxes on their benefits; and if a group plan requires the employees to pay premiums that are tax deductible, then the employee receiving the benefits must pay taxes. One way or another, taxes are paid either up front or upon delivery of the benefits.
