Reply #76: I think that's right -- it is good business for the employer and for the insurance company

[FarCenter]

The government loses out on tax revenue, but that is the case for lots of insurance products. The insurance companies are politically powerful and can get the tax code arranged so that their products are attractive as tax dodges, e.g. in extate tax avoidance.

Sharp lawyers and accountants stay up late thinking these things up, but they are allowed by the laws and there is nothing unusually nefarious about them.