Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Health insurance is not income. The premiums a person spends on their health insurance may be tax deductible (for some individuals - e.g. self-employed persons).
When a claim is made for health insurance, the insurance company usually pays the doctor's office/hosptial directly for their portion and then the doctor's office/hospital bills you for any remainder.
Great question! The only way that it can be considered income is if your employer pays your premium with after tax dollars. Your W2 will show the amount of your share in your wages line, and if so, you can deduct that portion on your Schedule A tax form as a medical expense. If it's not included, (and it usually isn't) your employer has paid with pre-tax dollars, and given you a break on your taxes already. That is the case nearly all of the time. Thanks for asking!
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When a claim is made for health insurance, the insurance company usually pays the doctor's office/hosptial directly for their portion and then the doctor's office/hospital bills you for any remainder.