Question

When did health insurance become linked to employment?

		the Progressive Era
		the New Deal
		World War II
		the Obama administration

Answer 1

During the 2^nd world war in USA the Federal government was predicting very high inflation. This is because after the first World War Germany experienced terrible devastation because hyperinflation has wreaked the Germany Economy. Therefore during the 2^nd World War the administration had tried to control inflation through wage and price control. In response to the wage control many labor groups planned to go on strike at a large scale. Therefore for stopping the labor strike, in a concession to the labor groups, the War labor Board exempted employer paid health benefits from wage controls and income tax. So due to this employers received a 100% tax deduction while the beneficiary labors received exemptions from the taxation. It means the health insurance become linked to employment during the Second World War but it became universal in mid 1960s.

Hence option third is the correct answer.