Companies started offering insurance because tax rates above a certain amount where in the 90+ percent range.
To pay people more, companies had to get highly creative.
Lots of "perks". Company cars, hotels, etc. Insurance was one such method.
Our entire Health Insurance Industry came from companies and people avoiding absurd taxes.
Now things are absurd in other ways.
The point is that employers can and will "adjust" in the same way on this.