Ask HN: Why is health insurance bound to employers in the US?
3 comments
See the history of the Stabilization Act of 1942 [1] and Executive Order 9250. Wages were frozen by law, but not benefits, so companies began offering benefits, including health insurance [2] The next year the IRS decided these were nontaxable, until it changed its mind in 1953, only to be overruled by Congress in 1954 [3].
[1] https://en.wikipedia.org/wiki/Stabilization_Act_of_1942 [2] https://www.nytimes.com/2017/09/05/upshot/the-real-reason-th... [3] https://economix.blogs.nytimes.com/2013/07/30/the-question-o...
[1] https://en.wikipedia.org/wiki/Stabilization_Act_of_1942 [2] https://www.nytimes.com/2017/09/05/upshot/the-real-reason-th... [3] https://economix.blogs.nytimes.com/2013/07/30/the-question-o...
The conventional explanation blames WW2 wage controls for creating the benefit as a differentiator.
The more cynical among us suffer it as cost of satisfying capital by way of employee job lock, particularly when coupled with the soon-to-return preexisting condition exclusions, and even though the locks disincentivize entrepreneurship and other sorts of beneficial risk tasking.
The more cynical among us suffer it as cost of satisfying capital by way of employee job lock, particularly when coupled with the soon-to-return preexisting condition exclusions, and even though the locks disincentivize entrepreneurship and other sorts of beneficial risk tasking.
So actually it doesn't make sense but some company benefits so it's locked in forever that way?
Why is this? Doesn't seem to make sense at any level.