Whole Foods is sinking under the weight of its health care expenses

[The Straight Story]

Whole Foods CEO: Yes, We Have No Obamacare

— By Josh Harkinson
| Tue Nov. 23, 2010 3:00 AM PST

— Photo of John Mackey from Wikimedia Commons

Last August, John Mackey, the founder and CEO of Whole Foods, sparked outrage in the liberal blogosphere and a customer boycott by publishing a full-throated critique of Obamacare on the op-ed page of the Wall Street Journal. He argued that the country should "move in the opposite direction—toward less government control and more individual empowerment," and held up Whole Foods' own health plan as an alternative: "Our plan's costs are much lower than typical health insurance, while providing a very high degree of worker satisfaction."

But it turns out that Mackey's claims, which also fueled conservative opposition to the Democrats' health-care bill, were misleading. In a memo that he sent to all employees last month, obtained by Mother Jones, Mackey concedes that Whole Foods is actually sinking under the weight of its health care expenses. In the past seven years, he writes, the cost of the company's health care plan as a percentage of its sales has gone up 60 percent. This year's tab is "equal to about 10% of the total Team Member compensation of $2 billion," Mackey complains. "On average over the past three years we have spent more on health care costs than we have made in total net profits!"

Far from being a model of do-it-yourself health care reform, then, Whole Foods' costly insurance plan illustrates why Mackey's opposition to the Affordable Care Act was misguided. Like other major grocery store chains, Whole Foods is facing rampant inflation in health costs. (Unlike Whole Foods, however, Safeway supported key parts of the ACA.) Experts blame this on a lack of incentives for doctors to control costs and the 44 million uninsured Americans who burden the system. The health care bill passed in March is meant to address those problems, in part, by mandating that everyone purchase insurance, subsidizing coverage for the neediest, and creating exchanges in which individuals can pool their resources to purchase affordable coverage. A report by the Business Roundtable, an association of CEOs from large companies, estimates that the bill could lower health care costs by as much as $3,000 per employee by 2019.

http://motherjones.com/mojo/2010/11/whole-foods-health-care-crisis

[hobbit709]

1. Let Mackey complain.

He wanted it both ways.

[Angry Dragon]

2. I guess he is not too bright and a liar also

[hobbit709]

3. Those two things go hand in hand when you spout RW talking points.

[DJ13]

4. What an idiot

He should have been pushing for either Medicare for All or at least the public option.

This is what happens when a free market believer cant see reality.

[iwillalwayswonderwhy]

5. Yep, and he lost business when he opened his mouth and opined

I know of at least one person who used to shop there twice a month who has never been back since his statement.

(That would be me)

[tularetom]

6. Sucks to be him

When businesses start going under because of the burden of their health care costs, we will see a big surge in support for single payer.

Too bad for Mr Mackey he wasn't smart enough to see this coming.

[Vinca]

7. Idiot. He should be screaming for single payer.

[xultar]

8. I quit shopping there when the CEO went batshit. So fuck him

[JVS]

9. Fuck whole foods.

[XemaSab]

10. Safeway's a union store

and they're based out of the Bay Area.

I have no regrets about shopping there, and based on how happy the employees look, they have no regrets about working there.

[hayu_lol]

11. A single-payer National Health Plan was and is the only...

answer. Gives everyone the care that they and their families need and takes the burden off all businesses of whatever size.

Too bad our bipartisan prez didn't get behind the single-payer program. He must really want to return to Chicago.

Oh yeah, and then there is Arnie Duncan.

[notesdev]

12. There's also the non-inconsequential issue

of them marking up product like a convenience store... maybe people can't afford to pay those prices and shop at cheaper locales now.

[Warren Stupidity]

13. "Experts blame this ..."

on doctors and the uninsured. Really Mother Jones? Seriously? No mention of the absurd 30%+ rent the insurance industry is taking out of the system? Not one peep?

[Hydra]

14. Our "experts" are paid off

I never bought that line- in the eyes of the top people, it's always the little people causing the problems, not them sucking the money out of system for nothing.

[hansberrym]

15. Hey I've got a great idea -let's put all our eggs into one basket!

Is not the USA sinking under the weight of all the promises made already?


"whole foods is facing rampant inflation in health costs" -no shit, so is everyone else, individuals, governments, businesses of all types. And the health care bill won't change that one bit.

Should I feel better that Congress went with fascisitic health care (governemnt+big business) than socialized health care?

[CrispyQ]

16. I worked at one of WF's corporate offices for a short time.

This was a few years ago, but employees who have five years got health premiums for themselves & their entire family paid for by the company. Many of the workers stay there just for that. They also let employees vote on what type of benefits they wanted. Employees voted to have company paid health premiums over company matching 401k. This was a major thorn in the paw of many of the execs, who would rather pay premiums & have company matching of 401k. Too bad so many of their workforce are lowly blue collar workers, huh? :nopity:

[bobbolink]

17. "individual empowerment" = "we're gonna saw off that limb you're clinging to"

"individual empowerment".... what malarky, and yet this administration doesn't take on that crap head on.

So, we sink further down....