Whole Foods' boss has grand plan for fixing US health care

Provided by Quartz Doing for health care what he did for groceries?

Whole Foods founder John Mackey is nearly as well known for making controversial statementsabout health care as he is for popularizing natural and health foods. Hes now putting his money where his mouth is, with an idea for a plan to improve the health of first his employees, then his customers, and then, well, how about all of America.

Health care is so broken in America, Mackey told Bloomberg Businessweeks Brad Stone. If we allow markets to work, if we allow entrepreneurs to get in here and do things like Im talking about doing, we will pretty much solve the health-care problem in a generation.

His planfocusesat leastin part on Americas diet, which he describes as terrible.

Step one, according to the Bloomberg piece, is openingWhole Foods Total Health Immersion program to more employees. Its a free weight loss retreat that includes medically supervised lab testing, cooking classes, and talks with nutritionists. And he wants to startoffering it to customers too, as a weekend getaway, in Austin first, and then in other major cities if it works

The next step would bea Whole Foods medical clinic, inspired by one started by Rosen Hotels & Resorts. It has an on site medical facility focused on nutrition and preventative care thatserves employees, which that companys founder says substantially reduced costs. Mackey was inspired to create something similar for his own employees, and potentially for his stores customers after touring the facility.

A Whole Foods spokesman Stone spoke to described these programs as mere brainstorms, but he says Mackey seems serious.

Mackeys not the first to propose internalclinics and wellness programs to reduce costs. But the track record of these programs is mixed, at best (paywall). Research has found some evidence ofcost savings from proactivedisease management, but only after several years, and has foundlittle long term gain from the sorts of wellness programs Mackey is touting.

Opening a clinic for customers faces potentially bigger hurdles. At his own company, Mackey can incentivize staffto participate in wellness programs orchoose his clinic. Thatll be tougher in a competitive health care market where his company has no particular expertise. Also, the average Whole Foods shopper is more likely to be higher income and health focused already, and less likely to need preventative or nutritional care.

As for Mackeys prophecies about diet, market-based solutions, and fixing health care in a generation, yes its true thatnutrition and preventative care are hugely important, but he ignores other massivedrivers of health care costs.

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Whole Foods' boss has grand plan for fixing US health care

Healthcare district honors 2015 Health Care Heroes, provides update on Fallbrook Hospital situation

Thursday, January 29th, 2015 Issue 05, Volume 19.

At the Fallbrook Healthcare Districts (FHD) Community Collaborative Breakfast, held Jan. 25 at Fallbrook Library, two individuals were named Health Care Heroes for 2015 and an update was provided on the current state of affairs concerning Fallbrook Hospital. Approximately 82 people attended the event.

FHD administrator Vi Dupre gave a review of the purpose and process of the Health Care Hero program, now in its seventh year and it was announced that this years honorees would be Ramiro Gonzalez and Teddie Borges.

FHD director Howard Salmon spoke about the selection of Ramiro Gonzalez for the award.

It was stated that for the past seven years Gonzalez has taken care of his father, who became a quadriplegic after falling from a ladder. In assuming the 24-hour care, Gonzalez also has had to care for his mother, who has significant medical issues.

Gonzalez not only cares for his parents, but takes them to their medical appointments, does the shopping, prepares the meals, does the laundry, and maintains the home.

To do this, he had to give up his job and the benefits of income and accumulation of social security benefits. He was described as a person whose "hard work and compassion is what comprises his life, every day, every hour."

His neighbors and others have said he is "pleasant and positive, a kind and gentle man."

Fallbrook Healthcare District director Barbara Mroz spoke about the presentation of Teddie Borges as a Health Care Hero 2015.

Borges works at the Adult Daycare Center (The Club), operated by the Foundation for Senior Care. The center provides a place for people who are memory-impaired, suffering from dementia, Alzheimers disease, or who have sustained an injury and need encouragement and social interaction.

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Healthcare district honors 2015 Health Care Heroes, provides update on Fallbrook Hospital situation

What You'll Really Spend on Health Care in Retirement

Hero Images/Getty Images Doctor discussing prescription with senior patient

For older Americans, figuring out how much youll need to save for future health care costs is the toughest part of retirement planning. The bills are not only daunting, but hard to predict. Now two recent studies from the Kaiser Family Foundation provide useful data that can serve as real-world benchmarks for your future health care expenses.

You already know Americans are living longer, and that health care spending is rising along with our life spans. To see how that increase varies over time, one Kaiser study, The Rising Cost of Living Longer, breaks down Medicare spending into its main componentssuch as hospitals, doctors and drugsand measures how much Americans spend on these services at different ages.

Those between the ages of 65 and 69, who represent 26% of traditional Medicare beneficiaries, account for only 15% of program expenses in 2011, the most recent year for which data are available. (The study does not include Medicare Advantage plans). People between the ages of 70 and 79 comprise 32% of Medicare beneficiaries and 30% of spending.

Among the oldest Americansthose age 80 and abovethe health care taxi meter runs up its largest charges, Kaiser found. These seniors represented 24% of Medicare beneficiaries but generated 33% of program expenses.

Below you can see the breakdown in spending by category for three different ages70, 80 and 90. As Americans age, the demand for hospital, nursing, in-home care and hospice services climbs.

Those are scary numbers, but the real issue for retirement planning is how much of that spending will be coming out of your own pocket. Another Kaiser study, How Much Is Enough, details the amounts older Americans spend on bills for health insurance premiums and uncovered health care expenses at different ages.

People between the ages of 65 and 74 spent $4,020 out of pocket on average in 2010 (he year analyzed by the study). Those between 75 and 84 spent $5,245, while those 85 and older spent $8,191more than twice as much as younger seniors. On average, 42% of all out-of-pocket spending was for insurance premiums and 58% for uncovered health care expenses, including long-term term care (the biggest chunk, at 18%), medical providers, drugs and dental costs, which Medicare does not cover.

Will your retirement health care spending match these averages? Probably not. Medicare insurance plans differ, and no one can precisely forecast your future health or longevity. That said, even a rough guide can be a useful planning tool. So take a look at your own health care plan and see what coverage it provides for these common medical charges. Consider the likelihood for each type of expense, as well as the average Medicare costs by age, to come up with an estimate of the savings you might need to fund these costs.

To prepare for that spending now, take a look at the sources of your retirement income. If you have a health savings account, do everything you can not to touch it now but let its tax-advantaged balances accrue. It is an excellent vehicle for funding future medical expenses with no adverse tax consequences. Ditto for a Roth IRA, which lets your money grow tax free. For more tips on planning for retirement health care costs, check out MONEYs stories here, here, and here.

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What You'll Really Spend on Health Care in Retirement

Panel Unanimously OKs Bill Easing Employee Health Care Count

In a rare show of bipartisanship over President Barack Obama's health care law, a Senate committee voted unanimously Wednesday to exclude veterans from the 50-worker threshold that triggers required coverage for employees under that statute.

The Senate Finance Committee vote was 26-0, a departure from the usual party-line fights over Obama's showcase 2010 law.

Yet senators' comments suggested that party-line battling over many aspects of the statute and other laws could erupt when the measure reaches the full Senate. Lawmakers described potential amendments ranging from restoring expired tax credits to paying veterans a $10.10 hourly minimum wage to exempting additional workers from the 50-employee threshold.

"We should consider other categories of Americans who also should be relieved of this job-killing provision," said Sen. Patrick Toomey, R-Pa.

Despite repeated pledges by Republicans now running Congress to repeal and replace the health care law, Democrats said the committee's actions Wednesday were an acknowledgment that such efforts were going nowhere. Obama has promised to veto any congressional effort to dismantle the law.

"Senators do not make changes to laws that are going away," said Sen. Ron Wyden, D-Ore.

Obama's law is gradually phasing in a requirement that companies with at least 50 workers offer health coverage to their employees. The Senate bill would let employers exclude from that count veterans who receive health care from the Department of Veterans Affairs or the military.

Committee Chairman Orrin Hatch, R-Utah, said the bill "will help our nation's veterans find needed jobs" and encourage small businesses to hire them.

Democrats said they shared that goal but doubted it would have much effect.

"It really won't have much impact either way, other than somebody's talking point," Sen. Debbie Stabenow, D-Mich., said afterward.

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Panel Unanimously OKs Bill Easing Employee Health Care Count

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Graying America, Health-Care Overhaul Boosts Medical Properties

By Peter Grant And Robbie Whelan

Investors are pouring money into buying and developing senior housing, medical-office buildings and other health- care-related properties, a class of commercial real estate that has been outperforming almost all others since the recession.

The country's aging population and recovering economy, as well as major changes taking place in the economics of health care, are fueling demand for more space.

Investors are gravitating to health-care real estate in part because it held up well during the downturn. Since 2007, health-care real-estate investment trusts have outperformed all other property types except for manufactured homes and self-storage facilities, according to the National Association of Real Estate Investment Trusts.

Investors also are betting the Affordable Care Act will translate into millions more visits to doctors by patients who are getting insurance for the first time. Last year, health-care-focused REIT shares produced total returns of 35.5% , including dividends, Nareit said.

The strong performance and new money flowing into the sector are signs that many investors want to stick with properties that are more recession-resistant. The memory of the pain suffered by owners of office buildings, stores, hotels and many other types of property still runs deep.

Health-care property "has a stability factor that's very attractive," says John Sweet, chief investment officer of Physicians Realty Trust, a real-estate investment trust that went public in 2013 at $11.50 a share. It traded recently at about $17.25.

Sales and construction activity have been surging. In all, about $5 billion in medical-office buildings were sold last year in the U.S., a record, up from $4.3 billion in 2013, according to John Smelter of the real-estate firm Marcus & Millichap. About 8 million square feet of new medical-office buildings were delivered, up from 7 million in 2013, but far short of the more than 26.5 million square feet delivered in 2008, Mr. Smelter said.

Medical-related housing--ranging from apartment complexes that exclude younger people to nursing facilities with 24-hour-a-day care--also is experiencing a boom. Sales transactions involving senior housing and nursing facilities rose to $17.4 billion in 2014 from $14.8 billion in 2013, according to the National Investment Center for Seniors Housing & Care, a Maryland nonprofit organization that tracks investment in the senior-housing real-estate sector.

Construction of assisted-living facilities, which provide more care than regular apartments but less care than nursing homes, is running at more than twice the amount of 2008 to 2011. There were 11,268 units under construction at the end of 2014, compared with the long-term average of 5,450 units under construction each quarter between the end of 2008 and the end of 2011.

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Graying America, Health-Care Overhaul Boosts Medical Properties

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