Question:
I do not pay for this it is part of my benefit.
Answers:
If your employer pays the cost of the plan or if you pay for it with pre-tax dollars the benefits are fully taxable. If you pay for the plan with after tax dollars (either privately or through your employer) the benefits are not taxable.
Savvy employers have figured this out now and usually will bump their employees' pay a bit to cover the cost of the plan and then deduct the premiums after tax. That way if the employees have to file a claim the benefits are tax free to them. My plan works exactly that way.
If you pay the premiums with after tax $, then you don't pay tax on the benefits. If you don't pay the premiums, then you pay tax on the money.
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