Generally, no.
This includes medical expense and dismemberment and sight loss coverage for the employee, his or her spouse and dependents, and coverage providing for disability income for the employee ( Q 380). There is no specific limit on the amount of employer-provided coverage that may be excluded from an employee’s gross income. Coverage is tax-exempt to an employee.1 The employer may contribute to an accident or health plan by paying the premium (or a portion) on a policy of accident or health insurance covering one or more employees, or by contributing to a separate trust or fund which provides accident or health benefits directly or through insurance to those employees.2 Coverage under an uninsured plan is explained in Q 8794.
Likewise, the value of critical illness coverage is not taxable income to an employee.