How to Lower Healthcare Costs

I was a CEO of a not for profit company that employed over 1000 people. One of our largest costs was healthcare. We had a good plan, with low deductibles, low copays for doctor visits, a good prescription plan, and low maximum out of pocket expenses. 

Many people would not go to the doctor. Some feared what they might learn. Some did not have the money to cover even minimal costs for a visit or drugs. Many had high blood pressure, high sugar or high cholesterol. Some had early signs of cancer unchecked. All treatable conditions. All with the potential of catastrophic costs. 

We decided to set up our own wellness clinic at the location of our highest employment. We offered free visits with a nurse practitioner for employees and family members age 5 and up. We offered free non-narcotic generic prescriptions and sugar testing kits. The results were amazing! 

People began to trust our nurse practitioner and RN. Employees were willing to try the service. More people focused on preventative health. More people controlled their blood pressure, sugar and cholesterol. More people learned to improve their diet and exercise. Large claims were reduced. 

We started the wellness clinic in 2015. Our cost for family coverage in 2014 was $14,375 per year. When I left the company in 2019, our cost for family coverage was $13,502. Our cost for insurance dropped 6%. Our wellness clinic cost some money for drugs, the facility, and the staff, but it was worth it. Our employees and their families were healthier. 

During the same time period 2014 to 2019, the Kaiser Family Foundation reported health insurance costs for an employee sponsored family plan went up 22%. Our employees got a much better deal on insurance and got healthier than other Americans with employee plans. 

Since 2019, virtual healthcare visits have emerged. This should have lowered the cost of healthcare further. More generic drugs came out. Generic drug costs dropped. The cost of wellness should have dropped. But they didn’t. The Kaiser Family foundation reported the cost of employee sponsored family health insurance went up 32% since 2019.

If a company covering 1000 employees can get these results, why can’t America? Imagine if Americans didn’t run to the emergency room with a cold, but instead used telehealth and free generic, low cost drug remedies. Imagine how many Americans would avoid diabetes, kidney disease and heart disease if they had an easy and free way to do it? Imagine if untreated minor illnesses didn't turn into hospital visits?

If the government bought generics in bulk they should cost pennies. (remember the penny?) There is no reason the wellness clinic logic couldn’t be expanded to lower American healthcare costs! 

We can improve the lives of Americans with free wellness visits and free generic drugs for all citizens. And, based on our experience it would lower costs for everyone. Use the model proven by a mid–sized company headquartered in Greenville, SC. Let’s call it the American Wellness Act.