No. The definition of insurance is that it's only making you whole again after a loss. If my house burns down and the insurance company gives me $200K to rebuil

No. The definition of insurance is that it's only making you whole again after a loss. If my house burns down and the insurance company gives me $200K to rebuild it and replace the contents, was that income? Likewise, the health insurance money is making me whole after an analogous loss to my health.