> The war itself played a major role in the growth of health insurance, according to a March 2002 history of health insurance benefits from the Employee Benefit Research Institute, a think tank that examines employment-based benefits. Wages had been frozen by the National War Labor Board amid a shortage of workers as many potential employees went off to fight in the war. Employers sought to get around the wage controls in order to attract scarce workers. Providing them health insurance was one way to do that, EBRI said.
> "During this time, employers petitioned, and were granted to have benefits, particularly health benefits, not be considered part of wages," Stephen Blakely, the director of communications and managing editor at EBRI, told us. "Congress agreed to exempt health insurance benefits from taxation."
http://www.politifact.com/virginia/statements/2014/oct/30/ja...