Hair cut insurance is great! Similarly, why don’t we get car insurance through our employer? Everyone expects employers to provide health car insurance but no one expects to get car insurance. That’s because health care insurance is not taxable. This incentives employers to provide more benefit to their employee through health care than they normally would. This in turn pushes too many dollars into health care which in turn raises the costs of health care. As an example, imagine if congress all of the sudden made car insurance a non-taxable benefit through employers. All of the sudden every employer would offer that benefit. Over time too many dollars would be chasing too few opportunities and prices would rise.