Sure, employees get a nice benefit worth money and pay no taxes on it. Employers offer said benefit and get a tax write off. I recall when I was job searching in 1980, I was advised to ask if they provided "free" health insurance. All the big companies did, and for me, it was free at the time, zero copay, nothing at all. Delivery of my kids was free except I paid a small amount to get a private room for my then wife.