Excerpt: There is one sense in which the employer provision of health insurance as a fringe benefit differs radically from all other fringe benefits offered at the place of work. Unlike typical benefits offered through employers, such as retire?ment plans, child care, and tuition reimbursement, health care benefits do not have a limit on tax-free contributions by the employer or the employee. For the employee, the value of these health benefits is excluded from the calculation of the employee's income and payroll tax liability, and there is no limit to this special employee tax break called the employee tax exclusion.

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