Employees are not taxed on premiums paid by the corporations. Employees are not taxed on benefits paid to them. Discounts are available for companies paying premiums on multiple employees. When a covered employee leaves or retires, he can take his policy with him. Although the former employee would then pay his own premiums, he may still get the discounted rates.
Coverage can be discriminatory.
You can cover key employees without offering coverage to all employees. You could cover management but not administrative personnel, for example. There are virtually no administrative costs to administer such a plan. Reimbursable services under current tax law include necessary diagnostic and preventive care as well as therapy and rehabilitation. They also include maintenance and personal care services for individuals needing assistance with activities of daily living, as prescribed by licensed health care practitioners.