Accident And Health Benefits

Fringe benefits provided to employees for sickness, accidental injury, or accidental death. These benefits include payment of hospital and medical expenses as well as income payments.

Investopedia Says:
Generally, employees can exclude the benefits from gross income. There is some incentive to extend these benefits to employees because the employer is entitled to a deduction for the payments.

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Fringe benefits for accidental injury, accidental death, or sickness. Benefits include payment of medical, surgical, and hospital expenses and income payments. An employer is entitled to a deduction for such payments, whereas employees may exclude the benefits from gross income.