Question

Employer-provided health insurance benefits arose in the mid-20th century as a result of?

1) A Supreme Court ruling that health insurance could be included in the collective bargaining process
2) Legislation which legalized this process
3) An executive order requiring employers to provide health insurance to employees
4) None of the above

Answer 1

Employer-provided health insurance benefits originated during the mid-20th century due to World War II wage freezes and tax incentives, rather than a court ruling, legislation, or an executive order.

Step-by-step explanation:

The practice of employer-provided health insurance benefits arose in the mid-20th century, largely as a result of World War II wage freezes and tax incentives.

While your options include a Supreme Court ruling, specific legislation, and an executive order, the correct choice is actually 'None of the above.'

The origin of employer-based health insurance in the US is tied to the war economy, as employers started offering health insurance as a benefit to attract workers during a time when direct wage increases were not feasible due to government-imposed wage controls.

This practice was further entrenched when the Internal Revenue Service (IRS) made employer-contributed health insurance premiums tax-exempt in 1943, cementing the role of employer-based health coverage in the American healthcare landscape.