Health care has become a deadly business. Last month’s murder of Brian Thompson, UnitedHealthcare’s CEO, has become a symbol of the illness long plaguing America’s health care industry: The system is broken. It is also breaking people.
Thompson’s murder has once again brought the financially driven U.S. health care system into the spotlight. In 2023, UnitedHealthcare made more than $16 billion in profits, before taxes and interest, on $281 billion in revenue (Herald, Dec. 27).
In stark contrast, in 2022, 40% of Americans feared not being able to afford health insurance, and 17% of adults with medical debt declared bankruptcy or faced losing their home because of it.
The United States has the most expensive health care system of any developed country and the least positive health outcomes.
“Whether nonprofit or for-profit, the incentives that are driving all insurance companies and hospitals are not always aligned with what is best for the person,” said Doug McCarthy, CEO of Local First, La Plata County’s independent business alliance. “The story around UnitedHealthcare has been percolating because of all this,” he said.
Local First got into the health care space in response to its members inability to pay for health insurance. Since 2021, thanks to Local First and the Local First Foundation’s partnership with Peak Health Alliance and Elevate Health Plans, southwest Colorado residents have had options. Employers, too.
Though today is the last day for individuals and families to sign up for 2025 health insurance, employers can do so any time during the year.
The Foundation’s model has one nonprofit partnering with another to do what is best for southwest Colorado. Describing how the traditional model has worked, McCarthy explained how the insurance company presents their product in a like it or not, buy it or not manner. The health partnership Local First has assembled is essentially flipping the script on that to say, “Here’s what our community needs.”
And it's working. In 2024, 1,730 southwest Coloradans purchased plans saving on average $350 per person annually which equaled $600,000 in savings, freeing up funds a person or family can use for other living costs, and lowering the cost small businesses with employer-sponsored plans pay for their employees.
Eric Malone, former president of the Payroll Department, a Local First member, spoke in 2021 to a steady increase in health care premiums over a decade the business incurred to pay health care premiums for 16 employees. By signing up with Local First, the company saved over $30,000 annually for the same coverage, was able to contribute to employee Health Savings Accounts and keep dollars circulating locally.
Some may remember that Bright Health, the first health insurance partner, went bankrupt. Local First recalibrated in 2022, sought a new partner and didn’t provide a health insurance option in 2023.
McCarthy was quick to point out that Bright Health was a start up and that the new partner Elevate Health is sponsored by Denver Health Medical Plan, a nonprofit with a quarter century’s track record with over 100,000 members throughout Colorado.
McCarthy is confident of their long-term horizon and the local benefit. He shared that in 2024, Elevate Health Plan offered the lowest premiums on the individual and family market, and for 2025, Elevate's High-Deductible Health Plan offers the lowest premium and the lowest deductible among plans that can be paired with a Health Savings Account.
McCarthy is grateful for local health care providers, including Southwest Health System (in Cortez), Mercy Regional Medical Center, Animas Surgical Hospital, and Pagosa Springs Medical Center, for stepping up and joining the network.
Thanks to Local First and its responsiveness to its members, southwest Colorado residents and employers have a local affordable health insurance option. More information, including locating a broker for free help, is available at foundation.local-first.org/health-care/. Act today, by 11:59 p.m.
