Why did employers decide to offer health insurance as an employee benefit?
a. Hospitals and physicians quit offering charity care to those who could not pay.
b. Society was focused on not having to pay for doctor visits and other needed health benefits.
c. Teachers were role models for unions to demand insurance as a benefit.
d. To obtain and retain the limited number of persons available to work when government rules prohibited raising wages, insurance was offered.
ANS: D
The idea of paying a small fee for guaranteed health care to have sickness cured was very popular. Health care providers liked knowing they would receive payment for their services. During World War II, faced with a limited workforce and governmental restrictions on wages, employers began to see health insurance as a means of supplying workers' benefits without granting a wage increase. Teachers were not demanding insurance as a benefit. Hospitals and physicians continued to provide charity care as they were able. Society understood that they needed to pay for health services; however, businesses realized that providing insurance was a way to keep their needed workforce.
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