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Why do Employers Pay for Health Insurance, Anyhow?

  • November 02, 2003

Nobody expects employers to provide groceries, housing or clothing, but for odd historical reasons American employers have evolved into providers of health insurance. Nearly two-thirds of Americans under 65 rely on health coverage from an employer. There is no good reason for any of this, aside from historical accident. During World War II, federal wage controls prevented employers from wooing workers with higher pay, so companies started offering health insurance as a way around the law....