Today, during a routine benefits renewal call for our company, my business partner and I came to a staggering realization: just for our health insurance premiums alone, we were facing an increase of nearly 42%, pushing our combined annual costs toward six figures. The most frustrating part? Our actual healthcare utilization was a fraction of that cost.

At first, the insurer cited HIPAA as a reason they couldn't disclose our claims data. But when we dug deeper and pulled our own claim payouts, the numbers spoke for themselves: the real cost of healthcare isn't healthcare itself—it's the inefficiency of the system.

That moment crystallized something I've long believed: our healthcare model is broken because it doesn't reward those who take care of their health.

A Meritocratic Healthcare System—Aligning Incentives for a Better Future

What if, instead of a one-size-fits-all approach, we rewarded people for good health behaviors? Employers could provide a baseline health insurance allowance through Individual Coverage Health Reimbursement Arrangements (ICHRA) and then offer bonus contributions for:

• Healthy habits (non-smokers, non-drinkers, regular fitness routines)

• Preventative care engagement (routine screenings, maintaining a healthy weight)

• Tracking & meeting health goals (using wearables, logging workouts, nutrition tracking)

This model would shift healthcare from a reactive, high-cost burden to a proactive, investment-based system where individuals directly benefit from their healthy choices.

The Business Case—Tax Credits for Companies That Implement This Model

Employers bear the brunt of rising healthcare costs, but they also hold the key to fixing the system. If companies were incentivized to implement a meritocratic healthcare approach, they could see:

• Lower long-term healthcare costs (healthier employees = fewer claims)

• Higher productivity & engagement (healthy employees perform better)

• Potential business tax credits for companies that invest in preventative, incentive-driven health programs

Why should a business be forced to subsidize unhealthy behavior at the same rate as those actively working to improve their well-being? A system that aligns incentives with outcomes would be a win-win for both employers and employees.

Coming Soon: A White Paper on the Future of Merit-Based Healthcare

This is more than just a conversation—it's a battle for the future of healthcare, incentives, and personal responsibility. In the coming weeks, I'll be releasing a white paper that breaks down:

1. The Economics of Healthcare Misalignment – Why costs continue to rise despite low utilization

2. The Power of Incentives – How behavioral economics can reshape healthcare

3. Implementation Strategy – How businesses can integrate ICHRA-based incentives

4. Legislative & Tax Policy Recommendations – How tax credits could drive adoption

We reward performance in business, investment, and personal finance. It's time to demand the same in healthcare.

A better way is possible—if we're bold enough to build it.