Posts by tag: healthcare system

Why is healthcare tied to employment in the US?

In the US, healthcare is intricately linked to employment, a model that dates back to World War II when wage freezes led companies to offer health insurance as a benefit to attract workers. This system, unique to the US, has continued due to tax incentives and the Employee Retirement Income Security Act (ERISA) of 1974 that encourages businesses to provide health benefits. Unfortunately, this model leaves those without employment often without healthcare. As a result, millions struggle to access affordable healthcare on their own, causing a significant issue that the country continues to grapple with today. So, while employer-based health insurance has its roots in historical circumstances, its persistence is largely due to legislative choices and tax policies.