Adequate warning is helpful before switch to CDHP; Long transition period creates less ill will.(Whole Foods Market Inc.)

Business Insurance, June, 2006 by Smerd, Jeremy

Byline: Jeremy Smerd In the summer of 2002, John Mackey, founder and chief executive officer of Whole Foods Market Inc., took a long walk in the woods to clear his head. Among the issues foremost on his mind was his company's rising health care costs. Four-and-a-half months later, in October, Mr.

Mackey completed the 2,175-mile Appalachian Trail; he also decided that beginning January 2003, Whole Foods would become one of the first large employers to switch exclusively to a high- deductible health plan. For Mr. Mackey, a libertarian who believes strongly in individual responsibility, the new plan represented the best way to force employees to be mindful, cost-conscious health care consumers. But the transition was not wrinkle-free. Despite a short but...

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