Originally published in CEO World Magazine Fri. April 15, 2016
Harris Rosen was the first business owner in the US who did what every other owner would like to do but hasn’t: provide his employees with high quality care at half the cost.
Rosen’s health plan, which I call Rosen Care, borders on the extravagant. It covers almost everything—even bariatric surgery for the obese. Out-of-pocket costs to Rosen’s 2,724 covered employees are minimal. The most they pay for a prescription, for example, is $30 and most of the time prescription drugs are free. Health care is also very accessible. Same-day appointments are available, and transportation is free. Doctor visits are on company time, so no one loses pay.
Under the circumstances, you’d expect Rosen’s health care costs to be sky high. Instead, on a per capita basis they’re about 40 percent less than the national average—despite the fact that Rosen Hotel employees are generally older and in poorer health than the general population, have a higher percentage of at-risk pregnancies and include an above-average number of diabetics.