What was one outcome of the federal government's exclusion of health insurance benefits from taxable income post-World War II?

The outcome of the federal government's exclusion of health insurance benefits from taxable income post-World War II is best represented by the choice indicating that employees opted for health insurance fringe benefits. This tax exclusion effectively made employer-sponsored health insurance more attractive to both employers and employees.

When health insurance benefits were untaxed, employers could offer these benefits without increasing employees' taxable income. This created a financial incentive for employees to choose health insurance as part of their compensation package rather than negotiate for higher cash wages. As a result, the demand for health insurance coverage surged, and many employers began to offer comprehensive health plans to remain competitive in attracting and retaining talent. This shift significantly increased the prevalence of employer-sponsored health insurance in the U.S. workforce, making it a dominant component of employee benefits. The favorable tax treatment led to widespread adoption of health insurance as a fringe benefit, shaping the landscape of health care benefits that we see today.