5 Ways to Solve Health Care | Michael D. Tanner | Cato Institute: Commentary

5 Ways to Solve Health Care | Michael D. Tanner | Cato Institute: Commentary: "Nothing would do more to fix our health-care system than moving away from a system dominated by employer-provided health insurance and instead making health insurance personal and portable, controlled by the individual rather than government or an employer. There is, after all, no logical reason for an individual to receive health insurance through their job. We don't receive most other types of insurance — auto, homeowners, life — in that way.

Employer-based health insurance is an anomaly that grew out of unique historical circumstances during World War II. Despite the widespread entry of women into the labor force during the war, the shift of men from private employment to the military created a labor shortage. At the same time, wage controls prevented employers from competing for available workers by raising salaries. In an effort to circumvent the regulations and compete for available workers, employers began to offer non-wage benefits, including health insurance.

In 1953, the IRS ruled that employer-provided health insurance was not part of wage compensation for tax purposes."