Whole Foods chief: No regrets for common sense

John Mackey

When President Obama called for constructive suggestions for health care reform, John Mackey, CEO and founder of Whole Foods Market Inc., took him up on that offer by writing an op-ed on the issue.

Little did he expect the outrage that targeted him for expressing an opinion.

"I honestly don't know why the article became such a lightning rod," he said in an interview with the Wall Street Journal this week.

But he said he has no regrets for suggesting that common sense – and a program that has proven to work – be considered in place of the massive service cutbacks and tax hikes that appear to be involved in Obamacare.

"I think a lot of people who got angry haven't read what I actually wrote. I just wanted to get people to think about whether there was a better way to reform the system," Mackey said.

What was his new idea?

He explained that "it just seemed to me there are some fundamental reforms that we've adopted at Whole Foods that would make health care much more affordable for the uninsured."

Mackey proposed a plan that would allow more health savings accounts (HSAs), more low-premium, high-deductible plans, more incentives for wellness, and medical malpractice reform. None of these reforms is in any of the Democratic bills; in fact, many Democrats want to do away with HSAs and high-deductible plans.

But Mackey said his company has a high-deductible plan with personal wellness accounts that work extremely well. He estimates that the plan costs about $2,100 per employee and $7,000 per family, and the plan covers all pre-existing conditions. He also added that this is about half of what most other companies pay.

Whole Foods puts several hundred dollars into HSAs for each employee, and if this money is not used in a year, they can save it for later health expenses. This plan is not a hit with advocates of a single payer system because they believe it promotes "antiwellness," discouraging preventative care.

Mackey laughed on hearing this, saying that it's assuming that people don't care about their own health.

For 12 consecutive years, Whole Foods has been rated by Fortune Magazine as one of the "100 Best Companies to Work For." The company is committed to selling healthy, mostly organic food, and practices "socially responsible trade."

Mackey donates 5 percent of the company's earnings to charity each year, while receiving a salary of $1 a year. He seems like the model citizen and business owner.

But after expressing an opinion that differed from Obama, left-wing consumers called for a nationwide boycott of the store.

He had written, "The last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new ... deficits and move us closer to a complete government takeover of our health-care system."

He also suggested many of the nation's health care issues are "self-inflicted," in that they result from behaviors that can be changed, such as "proper diet, exercise, not smoking, minimal alcohol consumption and other healthy lifestyle choices."

In response, advocates of Mackey's position scheduled a "buy-cott," encouraging those who back the CEO to buy more groceries from the store.

Mackey started the Whole Foods Company in 1978.

"Before I started my business, my political philosophy was that business is evil and government is good. I think I just breathed it in with the culture. Businesses, they're selfish because they're trying to make money," he said.

But at age 25, Mackey realized, "once you start meeting a payroll you have to have a different attitude about things."

He explains that it's a shame so few elected representatives ever have run a company.

He said the lack of knowledge permits lawmakers to treat business owners – those who create jobs, wealth and economic stability – like they are "cash dispensers."

"I regret the controversy it [the commentary] caused for Whole Foods, but I don't regret writing it, because I think what I said is true and it needed to be said. I wasn't seeing anyone else doing it."

But he said he might think twice next time.

"I've written one op-ed piece in 31 years. It might be 31 more before I write another one again," he said.