CASE STUDY The Whole Truth Whole Foods Market (WFM) started out in 1980 percent of all expenses, and when some employees as one store with 19 employees in Austin, Texas complained about the proposed change, the com Today, with 370 stores and 54,000 employees in pany decided to put it to a vale. Nearly 90 percent North America and Great Britain, it's the leading of the workforce went to the polls, with 77 percent natural and organic foods supermarket (and ninth- voting for the new plan. In 2006, employees voted largest food and drug chain in the United States). to retain the plan, which now carries a deductible of Along the way, it has also gained a considerable around $1,300; HSAs may go as high as $1,800 reputation as a socially responsible company and (and accrue for future use). The company pays 100 a good place to work. WFM's motto is "Whole percent of the premiums for eligible employees Foods; Whole People, Whole Planet," and its (about 89 percent of the workforce). guiding "core value, " according to co-CEO Wal- High-deductible plans save money for the ter Robb, is "customers first, then team members, employer (the higher the deductible, the lower the balanced with what's good for other stakehold- premium), and more importantly - at least accord ers . If I put our mission in simple terms," Robb ing to founder and co-CEO John Mackey-they also continues, "it would be, No. 1, to change the way make employees more responsible consumers the world eats and, No. 2, to create a workplace When the first $1,300 of their medical expenses based on love and respect." comes out of their own pockets for their own WFM made Fortune magazine's very first list HSAs), he argues, people "start asking how much of the "100 Best Companies to Work For" in things cost. Or they get a bill and say, "Wow, 1998 and has routinely appeared on the list ever that's expensive.' They begin to ask questions since. Observers have acknowledged the compa- They may not want to go to the emergency room if my's growth (which means more jobs), salary-cap they wake up with a hangnail in the middle of the limits (the top earner gets no more than 19 times night. They may schedule an appointment now." the average full-time salary), and generous health plan. The structure of the company's current health Questions care program, which revolves around high 1. How important would benefits like those deductibles and so-called health savings accounts offered by Whole Foods be to you if you (HSAs), was first proposed in 2003. Under such a were working there to put yourself through plan, an employee (a "team member," in WFM school or to collect a paycheck while look parlance) pays a deductible before his or her ing for a position in your chosen field? expenses are covered. 2. What negative elements do you see in Meanwhile, the employer funds a special Whole Foods approach to pay and benefits? account (an HSA) for each employee, who can 3. Why don't more companies use the spend the money to cover health-related expendi- approach to employee health care pio tures. The previous WFM plan had covered 100 neered by Whole Foods