Market Based Health Care Reform Alternatives Everyone Should Know About

Government-based overhaul has completelyhave come down dramatically in the last few
monopolized the debate on healthcare.years, and it’s unlikely that any government
Here are seven examples of successfulreform will match these kinds of market-based
market-based healthcare alternatives that yousavings.
should know about.5. Prepaid medical plans. For about the same
Government healthcare reform sure gets a lot ofmonthly cost as a cell phone (annual fee of $480
media attention. In just the last month alone therefor singles, $580 for couples, and $680 for
have been about 13,000 new stories containingfamilies) The No Insurance Club offers affordable,
the word “government” and the phrasepre-paid healthcare plans that cover basic medical
“healthcare reform.” In contrast, thereservices (12 office visits) from a participating
have been fewer than 300 news reports duringboard-certified physician, with no deductibles, no
the last month with both of the termsadditional premiums, and no co-payments.
“market based” and “healthcareCustomers and physicians enter directly into a
reform.”patient-doctor relationship without going through a
That’s a ratio of 43 stories on governmentthird party, and even pre-existing conditions are
healthcare for every one story aboutcovered under the No-Insurance Club plan.
market-based healthcare—government-basedAlthough currently not available in every market,
“reform” has completely monopolized thecoverage is gradually expanding around the
debate.country.
Given the momentum in Congress for some kind6. Concierge medicine. This provides primary
of government healthcare overhaul, the mediamedical care from family practice physicians for
attention is understandable. But at the same timeannual membership fees of $1,000 to $1,800, and
that Congress debates different versions ofthe doctor reports directly to the patient, and not
Obamacare and considers various public options,an insurance company or Medicare, as his main
some market-based healthcare solutions havecustomer. Concierge practices generally include 24
gone largely unnoticed, despite the fact that they7 access to a personal physician’s cell phone,
have successfully lowered medical costs andsame-day appointments with no waiting, personal
improved both access and quality of service.coordination of care with specialists, personal
Here are seven such examples of market-basedfollow up when admitted to a hospital, and even
healthcare alternatives:house calls. While a typical physician has more
1. Retail clinics. There are now 1,200 retail healththan 2,000 patients, a concierge physician
clinics across the country providing high-qualitygenerally limits his or her practice to between 300
basic medical care at lower costs than emergencyand 600 patients. Examples of concierge medicine
rooms or physician offices. They offer better,providers include MDVIP and Concierge Medicine
faster service, with longer and more convenientToday.
hours than a traditional medical office.7. High-deductible health insurance plans along with
Providers include Target Clinics (Minnesota andindividually owned and managed health savings
Maryland), Minute Clinics at select CVS pharmaciesaccounts (HSAs). This consumer-driven approach
in 24 states, Wal-Mart Clinics in 11 states, Takecould be called “MackeyCare,” after Whole
Care Clinics as select Walgreens in 32 metroFoods CEO John Mackey, who outlined this plan in
areas, the Little Clinics at select Publix and Krogerhis August 11, 2009, Wall Street Journal editorial,
grocery stores in 11 states, and Roadside Medical“The Whole Foods Alternative to
Clinic Labs serving drivers at truck stops in threeObamaCare.” The details of MackeyCare
states. Typically staffed by nurse practitioners,work like this:
retail clinics offer basic services such as sportsWhole Foods Market pays 100 percent of the
physicals for as little as $29, and have beenpremiums for all team members who work 30
praised by insurance companies, employers, andhours or more per week (about 89 percent of all
consumers for their convenience and affordability,team members) for our high-deductible
and as an effective way to serve the uninsured.health-insurance plan. We also provide up to
2. Retail clinic-hospital partnerships. To offer a full$1,800 per year in additional healthcare dollars
range of medical services, from flu shots tothrough deposits into employees’ Personal
major surgery, some retail clinics like Minute ClinicsWellness Accounts to spend as they choose on
have recently entered into partnerships withtheir own health and wellness.
major hospitals like Allina Hospitals in MinnesotaMoney not spent in one year rolls over to the
and the Cleveland Clinic in Ohio (see a recentnext and grows over time. Our team members
news report here). These partnerships will allowtherefore spend their own healthcare dollars until
patient referrals in both directions, as retail clinicsthe annual deductible is covered (about $2,500)
refer some of their patients to hospitals for moreand the insurance plan kicks in. This creates
serious medical conditions, and hospitals referincentives to spend the first $2,500 more
some of their patients to retail clinics for minorcarefully. Our plan’s costs are much lower
services like flu shots. Electronic medical recordthan typical health insurance, while providing a
sharing will allow a seamless transition for patientsvery high degree of worker satisfaction.he
in either direction.number of American workers covered by HSAs
3. On-site workplace healthcare clinics. Accordingand high-deductible health plans is now about eight
to a report by National Public Radio, “Moremillion, and would probably continue to grow unless
than 1,000 large companies in the U.S. havesome form of Obamacare passes with a public
on-site, primary care health clinics. They serveoption. According to Investor’s Business Daily,
about 5 percent of the working population … butgovernment healthcare reform “would have
that number could grow to 15 percent by theno place for cheap, basic plans that—like true
year 2015.” Some studies show businessesinsurance—cover just the big costs and require
can cut healthcare costs by up to 30 percent, thepolicyholders to pay out-of-pocket for routine
report says later.care and drugs,” but would instead favor
For example, in addition to operating Take Care“plans that cover just about everything with
Clinics in its pharmacies around the country,little or no co-payment.”
Walgreens also now offers Take Care HealthSo while Congress now debates how to control
Employer Solutions, which provides workplacerising healthcare costs and expand access to
clinics for primary medical care, on-sitemedical care through government intervention and
pharmacies, dental and vision services, anda public option, the private marketplace has
exercise and fitness programs.already started many healthcare reforms on its
4. Affordable $4 generic drugs. In 2008, Wal-Martown—providing affordable access at more than
started offering more than 1,0001,000 retail clinics in pharmacies, truck stops, and
over-the-counter prescription drugs for $4 or less,workplaces around the country; lowering drug
which then forced other retailers like Target,costs with prescriptions for $4 or less anywhere
Walgreens, and Kroger to offer similar discounts.in the country; introducing innovative prepaid
Wal-Mart claims that its customers have alreadymedical and concierge plans that restore the
saved more than $1 billion since the $4 drugdirect patient-doctor relationship; and covering
program was introduced, and that doesn’teight million employees with HSAs.
count the additional savings of millions of dollarsWhen it comes to lowering costs and improving
for the thousands of customers who buy $4quality and service, government enterprises have
drugs at Wal-Mart’s competitors.a miserable track record, and competitive
In September, Wal-Mart introduced a new $10markets have a proven, excellent record. If we
prescription drug program that includes a 90-daywant to make healthcare affordable and
supply and free mail delivery anywhere in theaccessible, we should encourage greater
country, which will save American consumerscompetition and more market-based solutions like
even more money, and they don’t eventhe examples above; and less government
have to live close to a Wal-Mart. Thanks tointervention, not more. Unfortunately, the
Wal-Mart and its rivals, prescription drug costspoliticians in Washington have it backwards.