Is this a COBRA deal? It seems like COBRA reimbursement.

Google:

is cobra payment taxable

https://www.irs.gov/newsroom/cobra-questions-and-answers-for-employees-and-former-employees

And:

https://www.shrm.org/topics-tools/tools/hr-answers/can-pay-former-current-employees-cobra-coverage

"

• COBRA premiums may be paid to the employee, and the employee would pay the insurance company directly. Since there is no guarantee that the employee will use the funds to pay the premiums, the funds are considered wages and subject to applicable taxes.
• An employer may reimburse premium payments the employee made directly to the insurance company. The employee must provide the employer with documentation verifying that payments to the insurer were made for the payments to be nontaxable and excluded from wages.
• An employer may pay the premiums directly to the insurance company. These funds are nontaxable to the employee and excluded from wages.
• An employer may provide funds for premiums under a severance plan. If the employer deducts the premiums from the severance pay and pays the insurer directly, the funds are excluded from wages and are nontaxable. If the employee receives the funds and can provide supporting documentation of the payment to the insurer, the funds are also nontaxable. If there is no verification that the employee used the funds to pay for the premiums, the amounts are included in wages and are taxable.

"