Institute:Office of National Coordinator (ONC) Workforce Training Curriculum
Component:Introduction to Health Care and Public Health in the U.S.
Unit:Financing Health Care - Part 1
Lecture:The history of the health insurance industry in the U.S.
Slide content:Factors Influencing Development of Commercial Health Insurance 1940s WWII wage controls IRS favorable tax treatment Employer sponsored health contracts non-cancellable 1949: Unions may negotiate health insurance benefits as part of wages 11
Slide notes:Other factors contributed to the growth of commercial health insurance in the 1940s . Government wage controls during World War II limited the ability of employers to attract skilled workers . Health insurance was considered a benefit, not wages, and employers began to offer health insurance as a way of attracting and indirectly paying employees . In addition, the Internal Revenue Service offered favorable tax treatment to benefits provided by employers, making them free of payroll tax to the employer and free of income tax to the employee . Later , government rules prevented the cancellation of employer-sponsored health care contracts during a contract year, and permitted unions to negotiate health insurance benefits as part of wage negotiations. 11