[rpedroso]

There are a few problems with this explanation:

1. FDR did not propose a wage cap until 1942, 3 years after the Great Depression had ended. It was a temporary wartime fundraising effort (and was quite popular with the public). In fact, health insurance really first came into existence during the Great Depression (mostly to ensure physicians and hospitals got paid).

2. FDR's wage cap did not pass.

What actually happened was the passing of the the Stabilization Act of 1942, which gave FDR a power (that he invoked) to freeze wages and salaries during the war. The freeze was deeply unpopular with the labor movement, who threatened mass strikes. As a compromise, congress exempted health insurance (and other benefits like PTO and pensions) from the freeze.

This was certainly a contributing factor (proportion of US population with healthcare roughly doubled from 1940 to 1945), but ignores the other factors that prompted the rise of employer sponsored healthcare. Indeed, by 1945, less than a quarter of Americans had health insurance.

Rather, the two largest contributors to employer-sponsored health insurance was the demand of health coverage by labor unions and the 1954 legislative change that made health insurance tax exempt.