Quickquotescahealthinsurance.com

The way group health insurance works is that Employer paid premiums for employee medical insurance are deductible by the company whether the coverage is under a group policy or an individual policy.  The employee need not report the amount paid by the employer as current income.  When an employee pays the premium and is then reimbursed by the employer, the amount received is not included in the employee's gross income.

Benefits paid under the insurance plan, which reimburse the employee for payments made for hospital, surgical or other medical expenses, are not included in the employee's gross income.  Group medical plans are an attractive fringe benefit because personally paid medical insurance premiums and medical expenses are only deductible in excess of 7.5% of the taxpayer's adjusted gross income.