Why Did Employer Sponsored Health Insurance Began? 
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 ! 