The simplest way to lower health care costs is also the hardest: encourage healthy behavior. That's the premise behind the insurance policies of SeeChange Health, which serves small employers and offers customers many discounts--depending on how healthy any one person works to be. "We know that can save a lot of money," says CEO Martin Watson. Before selling its own policies in 2010, it managed plans for larger insurers (which it still does). In one case, it incentivized 45% of diabetics to drop an average of 9 pounds, which led to a 19% drop in costs over two years. The company is now adding 2,200 members per month. In 2012, it says revenue increased sevenfold, to $54.2 million. That's healthy growth.
[Image: Flickr user Frans Persoon]