Health insurance premiums taken out of your paycheck on a pre-tax basis aren't considered taxable income. However, if you receive reimbursement through the Health Insurance Premium Payment (HIPP) program, it may be taxable.
This is because the reimbursement is for an amount that wasn't initially taxed. The taxability depends on how the state classifies the reimbursement and whether it is paid directly to you or to the insurer
For specific guidance, it's best to consult a tax professional or refer to the IRS guidelines
