Health Insurance

Why do employers offer health insurance?

A Answers (2)

  • AMichael Roizen, MD, Internal Medicine, answered

    Employers offer health insurance to recruit and retain employees

    Things often seem bleak after a recession, especially with no raises, bonuses or promotions to boost your morale (and your bank account).

    Still, there are incentives available to reel new employees in and keep veteran employees from jumping ship: health benefits.

    Recruiting and retaining employees is the primary reason employers offer health insurance. However, as a secondary effect, since so many employers provide coverage for so many people, they get to pick and choose which health plans they use. This has major implications because the employers have a loaded deck, so they force health plans to be innovative and create new approaches to providing health insurance and dealing with health problems. That benefit is almost priceless.

    Helpful? 1 person found this helpful.
  • AUnitedHealthcare answered
    UHC S 76 211

    The history of employers providing workers with health insurance goes back for decades. Originally, employer-sponsored health insurance was an added benefit when wages and salaries were kept low because of the Great Depression and the war. In the early 1940s, the federal government allowed businesses to provide health insurance coverage as part of a worker's compensation package. This practice has continued up to this day as many Americans who work for large employers enjoy a private employer-sponsored health insurance plan with different benefits, depending on the type of plan they select.


    UHC S 76 211
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