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]