I am trying to figure out if an employer can pay the employee directly for individual insurance (or insurance the employee gets through a spouse's group health plan) without it being taxable compensation. I tried several searches and came up with a lot about using a cafeteria plan of one employer to pay premiums to another employer, but my question does not involve a cafeteria plan. Does the taxation depend on whether the husband gets a check made out to him or whether his employer pays the insurance company directly?

Thank you in advance for any help you can provide.

I would recommend reading the "Accident & Health Benefits" section of IRS Pub 15-B. It covers the exclusion from wages.

I don't believe the method of payment would disqualify the exclusion, as long as all other qualifications are met. Just MHO.