Question

What were the three main developments that pushed private health insurance to become employment based in the United States?

Answer 1

Three main developments pushed private health insurance to become employment-based in the United States: Health Insurance Laws in other countries, Obamacare negotiations, and solving the adverse selection problem.

Step-by-step explanation:

The three main developments that pushed private health insurance to become employment-based in the United States are:

1. The Health Insurance Laws in Germany, France, Britain, and Russia in the late 19th and early 20th centuries, which required employers to provide health insurance for their employees.
2. The negotiation of the Obama administration in 2009, which motivated the health-care industry to support health care proposals due to the drop in employer coverage and affordability of insurance for employees.
3. The adverse selection problem in the U.S. health insurance market, which is solved by selling insurance through groups based on place of employment, reducing the insurance firm's fear of attracting only those with high risks.