I came of "business" age when a health insurance benefit was a regular benefit offered by businesses to help recruit a quality workforce.
It took some intellectual discipline for me to realize that it was indeed a perk.
Employer provided health insurance or at least low cost employer provided health insurance causes health care costs to rise.
Almost any fool knows that if one can get medical care for little or no cost one will seek a lot of it. Imagine if your employer said that part of your pay is all the steak your family can eat. Would your family eat more steak?
Employer provided health insurance or at least low cost employer provided health insurance causes health care costs to rise.
It is useful to understand why employer provided health insurance became the norm. Group insurance makes the same coverage cheaper than when bought outside the group and tax laws allow health insurance to be paid for with pre-tax dollars. In other words, I am not taxed for the health insurance benefits my employer provides, but would have to pay for my own insurance with after-tax income. Hence an employer can offer you higher net compensation (net pay plus the value of your health insurance) if he pays for the insurance than if you pay for it yourself.