The result of the wage and price controls was that every employee received health insurance. They really didn’t really have a choice over the matter. Soon thereafter, these same employees started to delude themselves that the insurance was free. The employers were supposedly picking up the tab. This resulted in them becoming indifferent about keeping costs down. But why should they be concerned? After all, wasn’t it free?
The original health insurance benefit should have been offered as an option. An employee could chose between the money or the insurance—but not both! The individual opting for the insurance benefit would then have instantly realized that the cost was coming out of his or her own pocket. They would have made damn sure the costs were kept low.
