The only reason that employers got involved in health insurance in the first place, was as a workaround for wage controls.
Right. But the U.S. tax code also provides an incentive for it by making it a tax-deductible expense for employers. If my employer buys a life insurance policy for me, I have to report the premiums as income. But if my employer covers my medical insurance costs, it’s tax-deductible to the employer as a “business expense” and I don’t have to report it on my own tax return.