The following is a true statement about the tax consequences of employer-provided health insurance:

Question 6 options:

1)	Premiums paid by the employer are excluded from the employees income, but payments received to reimburse medical expenses from the health plan are includible in income.

2)	Premiums paid by the employer are included in the employees income as compensation, but payments received to reimburse medical expenses from an employer-provided health plan are excluded.

3)	Premiums paid by the employer are excluded from the employees income, and payments received to reimburse medical expenses from an employer-provided health plan are excludable from income.

4)	Neither premiums nor medical expense reimbursements are excludable.