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When did employer-sponsored health insurance begin?

Dr. Michael Roizen, MD
Internal Medicine

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!

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.