On August 11th, 2009, John Mackey, CEO of Whole Foods ignited a firestorm with his opinion piece in the Wall Street Journal. His thoughts are as relevant today as they were months ago.
The Whole Foods Alternative to ObamaCare
Eight things we can do to improve health care without adding to the deficit.
“The problem with socialism is that eventually you run out
of other people’s money.”
With a projected $1.8 trillion deficit for 2009, several trillions more in deficits projected over the next decade, and with both Medicare and Social Security entitlement spending about to ratchet up several notches over the next 15 years as Baby Boomers become eligible for both, we are rapidly running out of other people’s money. These deficits are simply not sustainable. They are either going to result in unprecedented new taxes and inflation, or they will bankrupt us.
While we clearly need health-care reform, the last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system. Instead, we should be trying to achieve reforms by moving in the opposite direction—toward less government control and more individual empowerment. Here are eight reforms that would greatly lower the cost of health care for everyone:
• Remove the legal obstacles that slow the creation of high-deductible health insurance plans and health savings accounts (HSAs). The combination of high-deductible health insurance and HSAs is one solution that could solve many of our health-care problems. For example, Whole Foods Market pays 100% of the premiums for all our team members who work 30 hours or more per week (about 89% of all team members) for our high-deductible health-insurance plan. We also provide up to $1,800 per year in additional health-care dollars through deposits into employees’ Personal Wellness Accounts to spend as they choose on their own health and wellness.
Money not spent in one year rolls over to the next and grows over time. Our team members therefore spend their own health-care dollars until the annual deductible is covered (about $2,500) and the insurance plan kicks in. This creates incentives to spend the first $2,500 more carefully. Our plan’s costs are much lower than typical health insurance, while providing a very high degree of worker satisfaction.
• Equalize the tax laws so that employer-provided health insurance and individually owned health insurance have the same tax benefits. Now employer health insurance benefits are fully tax deductible, but individual health insurance is not. This is unfair.
• Repeal all state laws which prevent insurance companies from competing across state lines. We should all have the legal right to purchase health insurance from any insurance company in any state and we should be able use that insurance wherever we live. Health insurance should be portable.
• Repeal government mandates regarding what insurance companies must cover. These mandates have increased the cost of health insurance by billions of dollars. What is insured and what is not insured should be determined by individual customer preferences and not through special-interest lobbying.
• Enact tort reform to end the ruinous lawsuits that force doctors to pay insurance costs of hundreds of thousands of dollars per year. These costs are passed back to us through much higher prices for health care.
• Make costs transparent so that consumers understand what health-care treatments cost. How many people know the total cost of their last doctor’s visit and how that total breaks down? What other goods or services do we buy without knowing how much they will cost us?
• Enact Medicare reform. We need to face up to the actuarial fact that Medicare is heading towards bankruptcy and enact reforms that create greater patient empowerment, choice and responsibility.
• Finally, revise tax forms to make it easier for individuals to make a voluntary, tax-deductible donation to help the millions of people who have no insurance and aren’t covered by Medicare, Medicaid or the State Children’s Health Insurance Program.
Many promoters of health-care reform believe that people have an intrinsic ethical right to health care—to equal access to doctors, medicines and hospitals. While all of us empathize with those who are sick, how can we say that all people have more of an intrinsic right to health care than they have to food or shelter?
Health care is a service that we all need, but just like food and shelter it is best provided through voluntary and mutually beneficial market exchanges. A careful reading of both the Declaration of Independence and the Constitution will not reveal any intrinsic right to health care, food or shelter. That’s because there isn’t any. This “right” has never existed in America.
Today, John Stossell interviewed John Mackey:
You can watch the entire show here.
Whole Foods CEO John Mackey On Stossel, 12.17.09 /Logistics Monster/ – On August 11th, 2009, John Mackey, … http://tinyurl.com/ybr9l94
via @LogisticMonster Whole Foods CEO John Mackey On Stossel, 12.17.09 http://digg.com/u1IDmN #palin #tcot
thanks, you always post vital info that no one else seems to notice:
Thanks Granny – I heard about the dustup back in August but I was chasing other stuff at the time and didn’t give it the attention it deserved. Was good to read and hear Mr. Mackey’s assessment. He has most of it right, IMHO.
i am a former wfmi employee and wfmi health ins only covers 15% of the cost for rx drugs the rest is paid out of pocket // there is no coverage for preventive care doctor visits// there are no mental health benefits or dental coverage either// once your pwa account runs out everything is out of pocket amd they only cover 70% for hospitals// $1200 per year isn`t alot when you experience health issues//wfmi health ins is more akin to catastrophic health ins than full coverage plans
Makes me even happier that I bought Whole Foods Gift Certificates as Christmas Gifts.
I have not been a patron of Whole Foods because of its location, but the distance will no longer be a factor. I definitely plan to go check them out!
I would support WF if there was one here on the island…but alas, I’m stuck with California produce shipped here.
I am a CURRENT WFM team member, zb. The coverage they provide me with is insanely good, and gets better the longer I stay with the company. You’ve got your stats all wrong- it’s 80/20 once you hit the deductible, which you can pay with the $1800 given to you (per year) in the form of a PWA.
What do you mean preventative isn’t covered? Because it is. Yeah, it can run out if you spend it all going to the ER, instead of managing your health but otherwise it rolls over year to year.
I’m curious….since you’re no longer a team member,zb, how does your new insurance compare??
@Halley5 You wanted a link to the Stossel/Mackey interview, you got it. http://bit.ly/6tERzM Sorry for the delay. I was otherwise occupied.