Group medical expense premiums are _____ and benefits are _____.

Group medical expense premiums are considered tax deductible for employers who pay for them, which allows businesses to reduce their taxable income. This deduction is advantageous as it incentivizes employers to offer health insurance benefits to their employees.

On the other hand, benefits provided through group health insurance are typically not taxed as income for the employees receiving them. This means that when employees use their benefits, such as medical services or medications, they do not have to report these benefits as taxable income on their tax returns.

This structure helps to encourage the use of healthcare services while providing a financial benefit to employers who offer such plans. Thus, the combination of being tax deductible for employers and not taxable for employees makes this answer the correct choice.