Why Did Employer Sponsored Health Insurance Began?

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   Jim Winkler

   CEO/Owner, Winkler Financial Group, Houston, Texas

   That's a great question! There are two good reasons for an employer to offer coverage. The first reason for an employer to offer benefits was/is to draw an employee that may choose another employer. For example, if there are two widget factories in town, both paying the same wages, I can sweeten the deal for you by saying "I'll pay you the same as them, AND I'll give you benefits!" Who would you choose? Benefits are a way for the employer to entice and retain employees. The other reason is that if you have insurance, you can afford to go to the doctor and be treated. without the coverage, you miss work, or are forced to quit, impacting the companies profits by increasing turnover, training costs, and lost productivity.The employer also pays a portion of what the total cost of the coverage would have been, if you'd have had to pay for it yourself. Hope that answers your question!

   Answered on April 1, 2014

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