While there were experiments as early as the 1920s, employer-sponsored health insurance truly began during World War II. During the war, wages were capped by the federal government, so employers needed another means to entice and keep employees. The incentive they decided on were benefits like health insurance. These health benefits packages were not considered a part of employees’ wages and the employers could deduct what they spent on these benefits packages from their corporate taxes. A win-win situation!
- Q What do I do if my health insurance is employer-based and I lose my job?
- Q What is the Summary Plan Description (SPD) for my health insurance plan?
- Q What can I do if my child lost employer-sponsored health coverage?
- Q Is my employer required to provide group health benefits?
- Q Do incentives for wellness and prevention services benefit businesses?
- Q How are self-insured and fully insured health plans different?